Thailand needs to attract digital talent and invest more in education for it to boost its competitiveness in the current economic climate. That is the key message that came out of a recent IMD webinar, organized in…
Digital Competitiveness Ranking
Now in its fourth year, the IMD World Digital Competitiveness Ranking measures the capacity and readiness of 63 economies to adopt and explore digital technologies as a key driver for economic transformation in business, government and wider society.
The United States and Singapore have come in first and second, respectively, in the 2020 IMD World Digital Competitiveness Ranking, an analysis of how economies employ digital technologies, which could help predict their ability to weather the pandemic.
The ranking from the World Competitiveness Center positioned Denmark in third place and Sweden in fourth.
“The flexibility and adaptability of both individuals and the private sector may also be a large part of the puzzle for countries trying to rebuild their economies from COVID’s battering,” added Christos Cabolis, Chief Economist of the IMD World Competitiveness Center.
This year’s results show few changes in the top ten from last year. However, three clear trends in 2020’s results run through all economies that made the higher echelons. One is an efficient use of digital talent, a reflection of having the technological infrastructure in place and using the technology available.
Methodology in a nutshell
- The IMD World Digital Competitiveness (WDC) ranking analyzes and ranks the extent to which countries adoptand explore digital technologies leading to transformation in government practices, business models and societyin general.
- As in the case of the IMD World Competitiveness ranking, we assume that digital transformation takes placeprimarily at enterprise level (whether private or state-owned) but it also occurs at the government and societylevels.
- Based on our research, the methodology of the WDC ranking defines digital competitiveness into three mainfactors:
- Future readiness
- In turn, each of these factors is divided into 3 sub-factors which highlight every facet of the areas analyzed.Altogether, the WDC features 9 such sub-factors.
- These 9 sub-factors comprise 52 criteria, although each sub-factor does not necessarily have the same numberof criteria (for example, it takes more criteria to assess Training and Education than to evaluate IT integration).
- Each sub-factor, independently of the number of criteria it contains, has the same weight in the overallconsolidation of results, that is approximately 11.1% (100 ÷ 9 ~ 11.1).
- Criteria can be hard data, which analyze digital competitiveness as it can be measured (e.g. Internet bandwidthspeed) or soft data, which analyze competitiveness as it can be perceived (e.g. Agility of companies). Hardcriteria represent a weight of 2/3 in the overall ranking whereas the survey data represent a weight of 1/3.
- The 52 criteria include 19 new indicators which are only used in the assessment of the WDC ranking. The rest ofthe indicators are shared with the IMD World Competitiveness Ranking.
- In addition, two criteria are for background information only, which means that they are not used in calculatingthe overall competitiveness ranking (i.e., Population and GDP).
- Finally, aggregating the results of the 9 sub-factors makes the total consolidation, which leads to the overallranking of the WDC.
Computing the Rankings
What is the IMD World Digital Competitiveness ranking?
Digital Competitiveness factors and sub-factors
- Training and Education
- Scientific Concentration
- Regulatory Framework
- Technological Framework
- Adaptive Attitudes
IMD World Competitiveness Publications
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