assessing the networked readiness of the gulf cooperation council’s countries in an international...
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Assessing the networked readiness of Assessing the networked readiness of the Gulf Cooperation Council’s the Gulf Cooperation Council’s Countries in an international Countries in an international perspectiveperspective
Lessons from the Global Information Technology Report 2008-2009
Dr. Irene Mia, Senior Economist and Director
Global Competitiveness Network
World Economic Forum
E-Gulf Conference
Muscat, December 21st-23rd, 2009
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Outline
The World Economic Forum and the Global Competitiveness Network.
The Global Information Technology Report series and the Networked Readiness Index (NRI).
GCC countries’ networked performance, as assessed by the NRI 2008-2009, and relevant comparisons.
The most dynamic countries/regions over time in the NRI time-series.
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The Global Competitiveness Network
Flagship product: The Global Competitiveness Report: launched in 1979 covering 16 countries; it has since expanded its coverage to 133 countries.
Editor: Professor Klaus Schwab.
Goal: to provide a benchmarking tool for policymakers and business leaders.
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The Global Competitiveness NetworkGeographical coverage
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The Global Competitiveness NetworkThematic coverage
Regional, topical and industry report series:
The Travel and Tourism Competitiveness Report
The Global Information Technology Report
The Global Enabling Trade Report
The Lisbon Review
The Mexico Competitiveness Report 2009
The Brazil Competitiveness Report 2009
The Africa Competitiveness Report 2009
The Global Gender Gap Report
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The Global Information Technology Report
Besides the Global Competitiveness Report, the World Economic Forum produces regional and sector-specific reports, among which the Global Information Technology Report (GITR) series.
2008-2009
2005-2006
2006-2007
2007-2008
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The Global Information Technology Report
Launched in 2001, at first, in collaboration with the Information Technologies’ Group of the Center for International Development at Harvard University and, from 2002, with INSEAD.
Taking into account the crucial importance of information and communication technologies (ICT) for countries’ development and growth, the GITR is a powerful tool for business leaders and policy makers in understanding the enabling factors of ICT advancement.
The Networked Readiness Index (NRI) measures the propensity for countries/economies to exploit the opportunities offered by ICT and establishes a broad international framework mapping out the enabling factors of such capacity.
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The Global Information Technology ReportICT readiness is correlated to economic growth
y = 1.27x + 3.99R2 = 0.71
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1 2 3 4 5 6 7
NRI 2008-2009 score
Lo
g o
f G
DP
(P
PP
$)
per
cap
ita, 2007
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The Networked Readiness IndexThe Framework
Environment
Individual
GovernmentBusiness
Readiness
Individual
GovernmentBusiness
Usage
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The Networked Readiness IndexComposition
Networked Readiness Index (NRI)
Environment Readiness Usage
Individual UsageIndividual Readiness
Business UsageBusiness Readiness
Government
ReadinessGovernment Usage
Market Environment
Political/Regulatory
Environment
Infrastructure
Environment
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Use of hard data (publicly available information from sources such as the International Telecommunication Union, the World Bank, UNESCO, United Nations, etc.).
And survey data (from the Executive Opinion Survey), which records the perspectives of business leaders around the world; survey data is indispensable, particularly for variables where no reliable hard data sources exist.
In 2008, over 11,000 business leaders from 134 countries responded to the Survey.
The Networked Readiness Index 2008-2009Data sources
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The sample of respondents is carefully selected in each country by the Partner Institute to reflect the structure of a country’s GDP.
It is structured around eleven major issue areas, each of significant relevance to the current state of an economy’s business environment, asking participants to respond to a total of 130 questions based on their own experiences of operating a business in the country in which they are based.
The Survey is translated into over 20 languages and is available online.
The Networked Readiness Index 2008-2009Data sources: The Executive Opinion Survey
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The Networked Readiness Index 2008-2009Data Sources
The mix of hard and soft data
allows the index to capture:
dimensions important for national networked readiness for which there is no quantitative data available, such as the presence of laws relating to ICT, the venture capital availability or the quality of the education system in one country;
the perception and the insight of the business community in each country covered on a selected number of dimensions.
provides a useful platform for dialogue between the government and the private sector.
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The Network Readiness Index What data do we use?
Breakdown of indicators used in the NRI by type of data
SURVEY DATA41 indicators
(60%)
HARD DATA:27 indicators
(40%)
Total: 68 indicators
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The Networked Readiness Index 2008-2009 Examples of variables used in the calculation
Environment (30) Venture capital
availability
Administrative burden
US utility patents
High tech exports
Laws relating to ICT
Efficiency of legal framework
Telephone mainlines
Availability of scientists and engineers
Quality of scientific research institutions
Accessibility of digital content
Readiness (23) Quality of math and
science education
University/industry research collaboration
Company spending on R&D
Residential telephone connection charges
Quality of business schools
Business telephone connection charges
Government procurement of ICT
Government vision for ICT
Usage (15)
Cellular mobile subscribers
Broadband/DSL Internet subscribers
Prevalence of foreign technology licence
Capacity for innovation
Extent of business Internet use
Government online services
Government success in ICT promotion
ICT use and government efficiency
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The Networked Readiness Index 2008-2009 Top 20 performers and selected economies(score from 1 to 7)
1 2 3 4 5 6 7
ChadNigeriaEgypt
Russian Fed.TurkeyBrazilIndia
South AfricaThailand
ChinaTunisia
United ArabGermany
FranceEstonia
JapanAustria
United KingdomAustralia
Taiwan, ChinaHong Kong SAR
Korea, Rep.Canada
NetherlandsNorwayIcelandFinland
SwitzerlandSingapore
United StatesSweden
Denmark
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The Networked Readiness Index 2008-2009 Middle East and the GCC region(score from 1 to 7)
1 2 3 4 5 6
Algeria
Libya
Syria
Morocco
Egypt
Kuwait
Oman
Jordan
Saudi Arabia
Tunisia
Bahrain
Qatar
United Arab Emirates
Israel
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The Networked Readiness Index The GCC region: Evolution, 2006-2008(score from 1 to 7)
1 2 3 4 5 6
Kuwait
Oman
Saudi Arabia
Bahrain
Qatar
United Arab Emirates
2006-2007 2007-2008 2008-2009
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The Networked Readiness Index 2008-2009 Bahrain vs. selected comparators
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7Market environment
Political and regulatory environment
Infrastructure environment
Individual readiness
Business readinessGovernment readiness
Individual use
Business use
Government use
Bahrain Denmark MENA
Bahrain’s rank: 37
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The Networked Readiness Index 2008-2009 Kuwait vs. selected comparators
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2
3
4
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7Market environment
Political and regulatory environment
Infrastructure environment
Individual readiness
Business readinessGovernment readiness
Individual use
Business use
Government use
Kuwait Denmark MENA
Kuwait’s rank: 57
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The Networked Readiness Index 2008-2009 Oman vs. selected comparators
1
2
3
4
5
6
7Market environment
Political and regulatory environment
Infrastructure environment
Individual readiness
Business readinessGovernment readiness
Individual use
Business use
Government use
Oman Denmark MENA
Oman’s rank: 50
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The Networked Readiness Index 2008-2009 Qatar vs. selected comparators
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3
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7Market environment
Political and regulatory environment
Infrastructure environment
Individual readiness
Business readinessGovernment readiness
Individual use
Business use
Government use
Qatar Denmark MENA
Qatar’s rank: 29
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The Networked Readiness Index 2008-2009 Saudi Arabia vs. selected comparators
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2
3
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7Market environment
Political and regulatory environment
Infrastructure environment
Individual readiness
Business readinessGovernment readiness
Individual use
Business use
Government use
Saudi Arabia Denmark MENA average
Saudi Arabia’s rank: 40
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The Networked Readiness Index 2008-2009 United Arab Emirates vs. selected comparators
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7Market environment
Political and regulatory environment
Infrastructure environment
Individual readiness
Business readinessGovernment readiness
Individual use
Business use
Government use
United Arab Emirates Denmark MENA
United Arab Emirates’ rank: 27
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The Networked Readiness Index 2008-2009 Market environment: utility patents per million population
0.00
0.00
0.00
0.46
0.83
2.25
5.97
61.09
129.71
160.72
261.05
263.67
266.92
0 50 100 150 200 250 300
Bahrain
Oman
Qatar
United Arab Emirates
Saudi Arabia
Kuwait
Spain
Iceland
Korea, Rep.
Finland
Japan
United States
Taiwan, China
Source: US Patent and Trademark Office, 2007
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The Networked Readiness Index 2008-2009 Market environment: High tech exports (% total goods exports)
Source: The World Bank, 2008
0.00
0.02
0.02
0.07
0.29
30.42
39.42
44.60
45.14
49.44
49.68
59.38
0 10 20 30 40 50 60 70
Bahrain
United Arab Emirates
Oman
Saudi Arabia
Qatar
Ireland
Malaysia
Taiwan, China
Singapore
Malta
Hong Kong SAR
Philippines
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The Networked Readiness Index 2008-2009 GCC countries vs. top performers in education
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Availability ofscientists and
engineers
Quality ofscientific research
institutions
Quality of mathand scienceeducation
Quality of theeducational
system
Local availability ofspecialized
research andtraining services
Companyspending on R&D
University-industryresearch
collaboration
Finland United States Bahrain Kuwait Oman Qatar Saudi Arabia United Arab Emirates
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The Networked Readiness Index 2008-2009 GCC countries vs. top performers in e-government strategies
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2
3
4
5
6
7
Governmentprioritization of ICT
Governmentprocurement of
advancedtechnologyproducts
ICT Importance togovernment vision
of the future
Governmentsuccess in ICT
promotion
Availability ofgovernment online
services
ICT use andgovernmentefficiency
Presence of ICT ingovernment offices
Singapore Denmark Bahrain Kuwait Oman Qatar Saudi Arabia United Arab Emirates
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The Networked Readiness Index The most dynamic countries over the years
Variations in Decile ranks of Countries from 2001-02 to 2008-09
DecileCountry Rank Decile Rank Decile delta
China 64 9 46 4 5Colombia 57 8 64 5 3Guatemala 68 10 82 7 3India 54 8 54 5 3Jamaica 56 8 53 4 4Jordan 49 7 44 4 3Lithuania 42 6 35 3 3Mauritius 51 7 51 4 3Nigeria 75 10 90 7 3Romania 65 9 58 5 4Russian Federation 61 9 74 6 3Ukraine 66 9 62 5 4Vietnam 74 10 70 6 4
First inclusion NRI 2008–2009
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The Networked Readiness Index The most dynamic regions over the years
Variations in Decile ranks of Countries from 2001-02 to 2008-09
* IMF’s classification
DecileRegions * Rank Decile Rank Decile delta
Advanced Economies 14.5 2 15.5 2 –Africa 60.5 8.5 109 9 -0.5Central & Eastern Europe 37 5.5 58 5 0.5CIS and Mongolia 63.5 9 90.5 7 2Developing Asia 59 8 77.5 6.5 1.5Middle East 54.5 7.5 47 4 3.5Western Hemisphere 51 7 79.5 6.5 0.5
First inclusion NRI 2008–2009
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The Global Information Technology ReportMobility in a networked world
The overarching theme of this year’s Report is Mobility, with a special focus on mobile telephony and its impact on economic growth and networked readiness, but also on Internet ubiquity, mobile reality mining, and mobility of talents and research and development flows.
Also the Report provides insight into best practices and policies in networked readiness and competitiveness, focusing on specific country case studies. The countries selected this year are Egypt, Korea, Rep., and Brazil, for, respectively, best practices as an outsourcing destination, general ICT strategy to promote national competitiveness, and the use of e-government services and ICT to alleviate economic and social problems.
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The Global Information Technology ReportMobility in a networked world
Mobile Telephony: A Critical Enabler of Networked Readiness? By Thierry Geiger and Irene Mia (World Economic Forum)
From Mobility to Ubiquity: Ensuring the Power and Promise of Internet Connectivity ... for Anyone, Anywhere, Anytime, by Robert Pepper, Enrique J. Rueda-Sabater, Brian C. Boeggeman, and John Garrity (Cisco Systems, Inc.)
How to Maximize the Economic Impact of Mobile Communications: The Four Waves, by Leonard Waverman (Haskayne School of Business, London Business School, and LECG) and Kalyan Dasgupta (LECG)
Unshackled: How Regulation Can Amplify Mobile Service Benefits in Emerging Markets, by Scott Beardsley, Luis Enriquez, Mehmet Guvendi, Miguel Lucas, Oleg Timchenko, Sergio Sandoval, and Ashish Sharma (McKinsey & Company, Inc.)
Reality Mining of Mobile Communications: Toward a New Deal on Data, by Alex Pentland (Massachusetts Institute of Technology)
Global Mobility of Talents: What Will Make People Move, Stay, or Leave in 2015 and Beyond? by Vijayakumar Ivaturi (Wipro), Bruno Lanvin (INSEAD, eLab), and Hrishi Mohan (Wipro)
R&D and Innovation in the ICT Sector: Toward Globalization and Collaboration, by Graham Vickery and Sacha Wunsch-Vincent (OECD)
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The Global Information Technology ReportFocus on best practices: Selected case studies
How Outsourcing Can Help Mobilize Talents Globally: Egypt’s Success StoryBy Nagwa El Shenawy (Ministry of Communications and Information Technology, Egypt) and Bruno Lanvin (INSEAD, eLab)
IT Korea: Past, Present, and FutureBy Jae Kyu Lee (Korea Advanced Institute of Science and Technology), Choonmo Ahn (Electronics and Telecommunications Research Institute) and Kihoon Sung (Electronics and Telecommunications Research Institute)
Brazil: Will the 2014 Soccer World Cup Help Bridge the Social Gap through the Promotion of ICT and E-government?By Darcilene Magalhães (State Agency for IT Development, Brazil), Peter Knight (Telemática e Desenvolvimento Ltda., Brazil), and Eduardo Moreira da Costa (The Brazilian Innovation Agency)
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