Croatia 46th in global rankings for ICT competitiveness

ZAGREB, 23 April 2014. – The National Competitiveness Council published today the results of the most recent research of the World Economic Forum (WEF) on information technology, according to which Croatia is ranked in 46th position in using Information and communication technologies.

In this year’s edition of The Global Information Technology Report 2014, published under the theme “Rewards and Risks of Big Data,” the Networked Readiness Index (NRI) measures the capacity of 148 economies to leverage ICT for growth and well-being.

The Global Information Technology Report provides a comprehensive and authoritative estimate of the competitiveness of countries and the well-being of their citizens. The Network Readiness Index assesses the preparedness of an economy to use ICT in terms of:

  1. ICT infrastructure, costs of access, and the presence of the skills required for optimal use.
    2.  Acceptance and use of ICT by governments, business, and individuals.
    3.  The business and innovation environment and the political and regulatory framework.
    4.  The impact of ICT on the economy and society.

Network Readiness Index

1. ENVIRONMENT
Political and regulatory
Business and innovation
 
 
2. READINESS
Infrastructure and digital Content
Accessibility
Skills
 
     3. USAGE
Individual
Business
Government
 
      4. IMPACT
Economic
Social

As last year, Finland, Singapore, Sweden, the Netherlands, Norway and Sweden continue to be the leading countries in the world in their readiness to use ICT. Hong Kong recorded a significant jump from 14th to 8th place. The United States recorded an improvement of two places and South Korea one place. The United Kingdom recorded a drop to 9th place.

  Rank 2010 Rank 2011 Rank 2012 Rank

2013

Rank

2014

Finland 6 3 3 1 1
Singapore 2 2 2 2 2
Sweden 1 1 1 3 3
Netherlands 9 11 6 4 4
Norway 10 9 7 5 5
Switzerland 4 4 5 6 6
USA 5 5 8 9 7
Hong Kong 8 12 13 14 8
United Kingdom 13 15 10 7 9
South Korea 15 10 12 11 10

 

The economies of China (62), Brazil (69), Mexico (79) and India (83) continue to lag in the rankings and sustained rapid economic growth in these countries might be endangered if they do not you do not use their entire digital potential. On the other hand, countries with a clear vision of their ICT capacity recorded substantial growth in the rankings (United Arab Emirates (24), Kazakhstan (38) and Panama (43).

Of the Central European countries, Slovenia and the Czech Republic maintained their positions from last year, while Slovakia increased its ranking by two places. Poland and Hungary dropped five and three places, respectively.

This year Croatia registered an increase in the rankings from 51st to 46th position, which, according to the ICT readiness indicator, places Croatia on the level of relatively successful countries.

Comment: The rankings up to 2011 are not comparable to the rankings of the last two years because of important   methodological changes.
Source: Global Information Technology Report 2014, World Economic Forum.

Of the Southeastern Europe countries, Bosnia and Hercegovina recorded significant improvement, from 78th to 68th place, and Serbia moved from 87th to 80th place, while the other countries lost positions, especially Greece, which now occupies 74th place and is behind Bosnia and Hercegovina.

Comment: The rankings up to 2011 are not comparable to the rankings of the last two years because of important   methodological changes.
Source: Global Information Technology Report 2014, World Economic Forum

The fundamental reason for Croatia’s improvement from last year is its jump of 12 places in the index for Environment and a rise of seven places in the index for Impact.

Source: Global Information Technology Report 2014, World Economic Forum

Source: Global Information Technology Report 2014, World Economic Forum

  1. ENVIRONMENT
    Croatia advanced 12 places in the Environment Index. The results for business and innovation improved by 14 places, largely due to reduced estimates of the overall tax burden. On the other hand, the political and regulatory environment, for which Croatia is ranked on 88th place, is the worst of the 10 pillars.

The rankings for the indicators for the efficiency of the legal system to resolve disputes (140), the efficiency of the legal system in challenging government regulations (132), and government acquisition of advanced technology (136) are all very low.

  1. READINESS
    Croatia’s results in the Readiness Index have stagnated, but the sub-index for Accessibility has noticeably deteriorated by 10 places. This decline is the result of a drop in the indicator for the mobile cellular tariffs (71) and for fixed broadband internet tariffs (51).

Nevertheless, our best results were this index, primarily because of the outstanding rankings in the Internet and telephony competition indicator (1) and the mobile network coverage indicator (1).

  1. USAGE

In the Usage Index there is a noticeable difference between the very good Individual Use of ICT (39th) and the very poor Business Use and Government Use of ICT. However, Government Use of ICT improved by a rather considerable eight positions, primarily because of the improvement in the sub-index that evaluates the quality of on-line services of the government (40th).

  1. IMPACT
    The ranking under the Impact Index improved by nine places. The Economic Impact pillar noticeably improved by 15 positions, but improvement under the Social Impact pillar was considerably less, with a climb from last year’s 68th place to 66th. This result is mostly because of an improvement in ICT use and government efficiency by 23 places and in the indicator for the impact of ICT on new organizational models. It can be concluded that Croatia’s good results are because of its rather well-developed ICT infrastructure, the high degree of ICT literacy, the inclusion of ICT in secondary education, and the quality of education in general.

“In this year’s results Croatia has improved its position and is ranked higher than several European Union countries. Through the use of ICT we can ensure prosperity, but to achieve  an even higher technological standard, we still must direct our efforts to encouraging investment in technology, education, and innovation as the key conditions for the more rapid development of our country,” emphasized Ivica Mudrinić, President of the National Competitiveness Council.

This year’s methodology for compiling the Preparedness Index is comprised of 54 variables, 27 of which are quantitative data that are available from publicly available sources such as the World Bank, the United Nations, and the International Telecommunications Union (ITU). The other 27 variables are from data collected from executive opinion polling.

The Global Information Technology Report 2014 is the result of cooperation between the World Economic Forum, INSEAD, and also this year with the Samuel Curtis Johnson Graduate School of Management at Cornell University. The entire report is available at www.weforum.org.

For additional information please contact us by telephone at 01/4897 574 or by e-mail at konkurentnost@hup.hr.