Six key factors contributing to the creation of a competitive environment
According to Economist Intelligence Unit specialists, six key factors contribute to the creation of a healthy competitive environment for the development of the IT sector, including the availability of free qualified personnel, the formation of a culture of development and innovation, the construction of a world-class technological infrastructure, the creation of an effective legal regulation regime, an open economy based on competition, and the active participation of the state in achieving the necessary balance between the development of technology and the creation of conditions for the functioning of the market
Usually, the most successful development of the IT industry is observed in those countries where the above conditions are observed. Good indicators of IT sector development directly provide more than 5% of gross domestic product in most developed countries. In addition, a strong IT industry creates the conditions for the development of these countries' economies, helping companies and individuals to increase productivity and improve labor efficiency.
Other findings of the study:
Investments in human capital are critical to the development of the national IT industry. Finding talent will be one of the most challenging challenges facing high-tech companies in the near future.
The competitive broadband market is helping to build a strong IT industry and strengthen it. In the absence of fast, reliable and secure Internet access, high-tech companies are unable to interact effectively with partners and the scientific community, nor can they sell their services over the Internet.
A regulatory environment that protects intellectual property rights and combats cybercrime is essential. The United States, Australia, and Western Europe have the most effective mechanisms in place to protect intellectual property and combat cybercrime, but there have also been notable improvements in "hard" countries, such as China.
Globalization and development of the Internet will provide a new degree of freedom for research, design and development organizations. Ecosystems that, through the Internet or otherwise, bring together talent, technology, venture capital, and renowned universities in a risk-based manner can be the best incubators for innovation.
Scoring methodology
The Information Technology Competitiveness Index is organized into six different categories of qualitative and quantitative indicators, with a total of 25 indicators. When determining the categories and the corresponding weight of indicators, Economist Intelligence Unit specialists used as a basis special correlation coefficients of each indicator relative to the overall level of labor productivity in the IT-sphere. As a result, each country was calculated with its own overall score in the ranking and scores by category.
The following categories and their weight are listed: general economic situation in the country (10%), IT infrastructure (20%), human capital (20%), legal regime (10%), R&D development level (25%) and IT industry development support (15%).
Qualitative indicators were determined by the Economist Intelligence Unit analysts in accordance with special assessment criteria. Quantitative indicators have been normalized to the population of a given country and each country gets a score from 0 to 1 by applying a special formula to each value. Each indicator is then translated into a steel scale. The total score for each country is also given on a steel scale, where 100 points is the maximum possible result.
The data used in the rating was obtained from the Economist Intelligence Unit, the United Nations, the World Bank, the World Industrial Property Organization, IDC research companies, Pyramid Research and others. More information about the research methodology can be found directly in the report.