WASHINGTON, March 28 (UPI) -- The United States has regained its top position as the world leader in information technology and telecommunications, according to a report by the World Economic Forum released Tuesday.
Best known for hosting the annual gathering of top business leaders, policymakers, academics and Hollywood celebrities at the Swiss ski resort of Davos, the forum also conducts a number of surveys including its global information-technology report, which examines the so-called networked readiness of 115 countries worldwide.
Last year's results took many by surprise as Singapore came in at first place, while the United States ranked fifth, behind Iceland, Finland and Denmark.
This year the country that is home to Silicon Valley, the tech-heavy Nasdaq stock market and the largest number of technology-based start-ups came in first on the Forum's ranking, while Singapore fell to second place. Denmark, Iceland and Finland, meanwhile, took third, fourth and fifth place, respectively.
Specifically, the networked-readiness index measures how a country has established a solid environment that encourages telecommunications networks to be built up, including a sound macroeconomic base as well as regulatory and infrastructure foundations; the readiness of individuals, businesses and governments to make use of the technology; and the actual use of those technologies made available.
"Information and communication technologies presently represent one of the most important drivers in boosting efficiency and productivity in today's fast changing global economy. The United States has been for many years an (information and communications technology) powerhouse, and its sustained ability to harness these technologies so effectively for boosting the efficiency of its economy and its many markets provides a standard of measurement for other countries wishing to rapidly improve the living standards of their citizens. The long pipeline of scientific and technological innovation is a remarkable source of strength for the U.S. economy which, large macroeconomic imbalances notwithstanding, remains a choice destination for foreign capital," said Augusto Lopez-Claros, director of the global competitiveness network at the World Economic Forum and co-editor of the report.
The authors also pointed out that the United States makes venture capital readily available, which is key for start-ups to develop in what can often be a risky business sector. In addition, they lauded the role the private sector plays in research as well as the cooperation between the public and private sectors in both innovation and penetration of information technology.
The study is conducted jointly with French business school INSEAD and Cisco Systems.
In the latest report the Forum pointed out that while there are a number of downside risks facing the global economy, it found that information technology was one of the key drivers of economic growth and competitiveness across the globe.
"Networking and communication technologies are enhancing the way people communicate and exchange ideas, opening the next horizon for creativity, innovation, growth and competitive advantage. The strong link between the networked readiness Index and global competitiveness has increased and is evidence of the critical role that these technologies play in any economy or company's strategic plans," said John Chambers, chief executive of Cisco Systems.
Countries in the Asia-Pacific region also did well in the index, with Taiwan, Hong Kong, South Korea, Australia and Japan ranking in at seventh, 11th, 14th, 15th, and 16th place respectively. Meanwhile, emerging-markets giants India and China ranked in at 40th and 50th, respectively.
In Latin America, Chile ranked the highest at 29th, while Israel was the top performer in the Middle East at 19th, and the United Arab Emirates was the top performer in the Gulf region at 28th. As for the least-equipped countries, Ethiopia has the dubious honor of being the worst in the table, followed by Chad and Paraguay.
