"Germany falls back to 23rd place due to weak values in digital infrastructure and education. The universities stand out positively.
The United States has regained the top position in the IMD World Digital Competitiveness Ranking 2023 against competition from Europe and Asia. The Netherlands takes second place and moves up four places by strengthening its position in the knowledge and future preparedness categories. Singapore rises one place to third due to its improvements in the knowledge category, but Denmark falls to fourth place. Switzerland maintains fifth place and improves in both technology and future readiness factors.
At the regional level, East Asia continues to lead, followed by North America and Western Europe. East Asia significantly outperforms North America and Western Europe in all digital factors, particularly in the technology and future readiness sub-factors.
The World Digital Competitiveness Report measures the key competitive factors for countries. The focus is on the categories knowledge, technology and future readiness with the following criteria:
Knowledge: Talents, Training & Education and Science
Technology: Regulatory framework, capital and technological framework (infrastructure)
Future Readiness: Adaptability, business agility and IT integration
"There is ample evidence in our rankings that national competitiveness comes from investing in education and providing the skills required by the labor market. When it comes to technology and AI, the need is even greater," says Arturo Bris, Director of the IMD World Competitiveness Center.
Germany in 23rd place
Germany has achieved the worst values in recent years in all three categories - knowledge, technology and future readiness. In comparison with the other European countries, Germany fell 4 places to 15th place.
Rank 14 is comparatively good in the knowledge category, mainly because of the good universities (rank 7). In the “Talent” rankings, however, it only reaches 28th place.
Things look very bleak in the technology section, where 47th place for the technological framework is the worst value for Germany. Communication technology and mobile broadband are viewed particularly negatively. Investments in telecommunications (34th place) and venture capital (33rd place) are not great moments either. However, the national credit rating and the market capitalization of IT and media stocks are enough to achieve a place in the top 10
In the Future Readiness section (rank 24), knowledge transfer, robot density, protection against software piracy and privacy protection laws stand out positively. Bad marks were given for the company's agility (rank 42) and the use of big data and analytics methods.
Hardly any progress in Europe
While Asia is developing and the Americans have regained the lead thanks to AI, there is no noticeable progress in Europe. "In terms of digital transformation, companies in Europe are not really doing any better this year than last year. So it seems that the next generation of digital funds in Europe have not yet changed the digital culture," said Bris. These include the EU's €800 billion Temporary Recovery Instrument, designed to support the economic recovery from the COVID pandemic and create a greener, more digital and resilient future.
Denmark, which topped the 2022 rankings, has fallen to fourth place this year, largely due to declines in sustainability and technology factors. Future readiness is about how well a country is equipped to take advantage of the opportunities presented by digital transformation. In addition to Germany, Spain, France and Great Britain have also fallen behind." [1]
1. KI bringt Vereinigte Staaten zurück an die Spitze. Frankfurter Allgemeine Zeitung (online) Frankfurter Allgemeine Zeitung GmbH. Dec 5, 2023. Von Holger Schmidt
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