Recent research reiterates that countries gaining expertise in some aspect of digital technology will definitely reap future benefits
Over the past few decades, the world has gone through one of the biggest technological leaps in human history. The shift away from traditional analogue systems to digital technologies and automation has had widespread and profound effects on many aspects of humanity, allowing information to be accurately recorded, stored indefinitely, and transferred immediately to anywhere on the planet.
The shift to digitisation has allowed us to improve many of the ways in which we tackle problems, whether breaking down barriers to communication or processing data in efficient and highly precise ways. This has had a huge impact on just about every industry and sector in the global economy, with new technologies continuing to be developed with every passing year.
Certain sectors, such as financial services, have benefited tremendously from digitisation, as it has allowed the near-instant transfer of funds to any part of the planet. Digital technology allows us to continually develop new ways to make money easier to manage, whether you’re overseeing the accounts of a multinational corporation or simply keeping track of your personal finances.
However, while the benefits of digitisation are difficult to dispute, some parts of the world have been much faster to embrace digital technologies than others, giving them a clear economic advantage. This was revealed in recent research by Tipalti, a US-based accounting software and global payment automation company, on the countries with the best Digital Economic Outlook.
The report said that with digital technologies being so widespread and deeply ingrained in modern life and the global economy, those countries that can emerge as experts in some aspect of digital technology will no doubt reap the benefits in the future.
Countries with Best Digital Economy Outlooks
The research over 50 countries with significant economies to see which has the greatest affinity for digital technology. To achieve this, researchers looked at eight separate factors from annual tech exports to cyber security expertise, assigning a Digital Economy Score to each country representing the relative promise of their digital economy.
- Singapore – Digital Economy Score: 10
Singapore has the most promising digital economy, having achieved the highest Digital Economy Score of 10. This small city-state in Southeast Asia is a well-known hive of innovation and technological development. It has also been a leading nation in the advancement of blockchain technology which could dominate the digital landscape in the near future.
A large part of the Singapore economy comes from the export of integrated circuits, or microchips, which are a key component of many electronic devices such as computers, making it an important player in the creation of hardware that supports the digital economy.
- Netherlands – Digital Economy Score: 9.8
The Netherlands has the second most promising economy when it comes to digital, having received a Digital Economy Score of 9.8 out of 10. While many might associate the Netherlands primarily with horticulture due to the country’s huge flower industry, which accounts for roughly 60% of the global market, the Dutch have a long history of being technological innovators and savvy businesspeople.
Researchers found that the Netherlands scored well across the majority of factors investigated. The country placed among the top 10 nations for proficiency in both data science and technology skills, and average internet speeds of 70.32 Mbps were the 4th fastest in our study, allowing quick and easy access to online services.
- Germany – Digital Economy Score: 9.6
The third most promising digital economy per the study is Germany, which earned a Digital Economy Score of 9.6. Germany is the economic powerhouse of Europe and has a GDP of roughly $4.26 trillion, making it the largest economy in Europe and the fourth largest in the world.
Germany is the second largest exporter of technology in the world with total exports in 2021 of $209.74 billion, a figure only surpassed by China. Germany also performs well in most other factors, especially cyber security, for which the country ranks 6th with a National Cyber Security Index score of 90.91. However, Germany’s median internet speed of 29.64 Mbps prevents the country from placing higher in our ranking.
The Top Countries for Each Digital Economy Factor
This is the list of which countries which topped the table for each specific factor that the researchers looked at while calculating their Digital Economy Scores.
- Median Internet Speed – Denmark – 123.96 Mbps
- Annual Tech Exports – China – $942.31 billion
- Technical Skills Proficiency – Indonesia – 100%
- Data Science Skills Proficiency – Indonesia – 100%
- National Cyber Security Index Score – Greece – 96.10
The shift towards digitisation has had a profound impact on every aspect of human life and business. The countries that can emerge as experts in some aspect of digital technology will no doubt reap the benefits in the future.
Based on the study, Singapore has emerged as having the most promising digital economy followed by Netherlands and Germany respectively. Denmark has the fastest median internet speed while China has by far the highest annual tech exports.
Indonesia emerged as having both highest technical skills proficiency and data science skills proficiency while Greece scored highest on National Cyber Security Index Score.
It is clear that there is still much work to be done across all countries to improve their digital economies, but these rankings highlight some key areas that countries can focus on to improve their prospects in this rapidly changing landscape.
Know more about our Top Ranked PGDM in Management, among the Best Management Diploma in Kolkata and West Bengal, with Digital-Ready PGDM with Super-specialization in Business Analytics, PGDM with Super-specialization in Banking and Finance, and PGDM with Super-specialization in Marketing.