Download The Networked Readiness Index 2008

Assessing the networked readiness of
the Gulf Cooperation Council’s Countries
in an international perspective
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
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
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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Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
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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Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
The Global Competitiveness Network
Geographical coverage
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The Global Competitiveness Network
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Thematic 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
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
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
2007-2008
2006-2007
2005-2006
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Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
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 Report
ICT readiness is correlated to economic growth
12
Log of GDP (PPP $) per capita, 2007
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
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y = 1.27x + 3.99
R2 = 0.71
10
9
8
7
6
5
4
1
2
3
4
5
6
7
NRI 2008-2009 score
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The Networked Readiness Index
The Framework
Individual
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Environment
Business
Government
Readiness
Individual
Business
Government
Usage
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The Networked Readiness Index
Composition
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Networked Readiness Index (NRI)
Environment
Readiness
Usage
Market Environment
Individual Readiness
Individual Usage
Political/Regulatory
Environment
Business Readiness
Business Usage
Infrastructure
Environment
Government
Readiness
Government Usage
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The Networked Readiness Index 2008-2009
 Use of hard data (publicly available information from
sources such as the International Telecommunication
Union, the World Bank, UNESCO, United Nations, etc.).
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Data sources
 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.
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The Networked Readiness Index 2008-2009
Data sources: The Executive Opinion Survey
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
 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.
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The Networked Readiness Index 2008-2009
Data Sources
The mix of hard and soft data
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries


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?
HARD DATA:
27 indicators
(40%)
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Breakdown of indicators used in the NRI
by type of data
SURVEY DATA
41 indicators
(60%)
Total: 68 indicators
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The Networked Readiness Index 2008-2009
Examples of variables used in the calculation
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Environment (30)
Readiness (23)
Usage (15)

Venture capital
availability

Quality of math and
science education

Cellular mobile
subscribers

Administrative burden



US utility patents
University/industry
research collaboration
Broadband/DSL
Internet subscribers
High tech exports


Company spending on
R&D


Laws relating to ICT
Prevalence of foreign
technology licence

Efficiency of legal
framework


Residential telephone
connection charges
Capacity for innovation

Quality of business
schools

Extent of business
Internet use

Telephone mainlines

Availability of scientists
and engineers

Business telephone
connection charges

Government online
services

Quality of scientific
research institutions

Government
procurement of ICT

Government success in
ICT promotion

Accessibility of digital
content

Government vision for
ICT

ICT use and
government efficiency
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The Networked Readiness Index 2008-2009
Top 20 performers and selected economies
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
(score from 1 to 7)
Denmark
Sweden
United States
Singapore
Switzerland
Finland
Iceland
Norway
Netherlands
Canada
Korea, Rep.
Hong Kong SAR
Taiwan, China
Australia
United Kingdom
Austria
Japan
Estonia
France
Germany
United Arab
Tunisia
China
Thailand
South Africa
India
Brazil
Turkey
Russian Fed.
Egypt
Nigeria
Chad
1
2
3
4
5
6
167
The Networked Readiness Index 2008-2009
Middle East and the GCC region
(score from 1 to 7)
Israel
United Arab Emirates
Qatar
Tunisia
Saudi Arabia
Jordan
Oman
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Bahrain
Kuwait
Egypt
Morocco
Syria
Libya
Algeria
1
2
3
4
5
6
17
The Networked Readiness Index
The GCC region: Evolution, 2006-2008
(score from 1 to 7)
2006-2007
2007-2008
2008-2009
Qatar
Bahrain
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
United Arab Emirates
Saudi Arabia
Oman
Kuwait
1
2
3
4
5
6
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The Networked Readiness Index 2008-2009
Bahrain vs. selected comparators
Bahrain
Denmark
MENA
Market environment
7
Government use
6
Political and regulatory environment
4
3
Business use
Infrastructure environment
2
1
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Assessing the networked readiness of the GCC countries
5
Individual use
Individual readiness
Bahrain’s rank: 37
Government readiness
Business readiness
19
The Networked Readiness Index 2008-2009
Kuwait vs. selected comparators
Kuwait
Denmark
MENA
Market environment
7
6
Political and regulatory environment
5
4
3
Business use
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Government use
Infrastructure environment
2
1
Individual use
Individual readiness
Kuwait’s rank: 57
Government readiness
Business readiness
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The Networked Readiness Index 2008-2009
Oman vs. selected comparators
Oman
Denmark
MENA
Market environment
7
6
Political and regulatory environment
5
4
3
Business use
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Government use
Infrastructure environment
2
1
Individual use
Individual readiness
Oman’s rank: 50
Government readiness
Business readiness
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The Networked Readiness Index 2008-2009
Qatar vs. selected comparators
Qatar
Denmark
MENA
Market environment
7
6
Political and regulatory environment
5
4
3
Business use
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Government use
Infrastructure environment
2
1
Individual use
Individual readiness
Qatar’s rank: 29
Government readiness
Business readiness
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The Networked Readiness Index 2008-2009
Saudi Arabia vs. selected comparators
Saudi Arabia
Denmark
MENA average
Market environment
7
6
Political and regulatory environment
5
4
3
Business use
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Government use
Infrastructure environment
2
1
Individual use
Individual readiness
Saudi Arabia’s rank: 40
Government readiness
Business readiness
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The Networked Readiness Index 2008-2009
United Arab Emirates vs. selected comparators
United Arab Emirates
Denmark
MENA
Market environment
7
6
Political and regulatory environment
5
4
3
Business use
Infrastructure environment
2
1
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Government use
Individual use
Individual readiness
United Arab Emirates’ rank: 27
Government readiness
Business readiness
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The Networked Readiness Index 2008-2009
Market environment: utility patents per million population
266.92
Taiwan, China
263.67
261.05
Japan
160.72
Finland
129.71
Korea, Rep.
61.09
Iceland
5.97
Spain
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
United States
2.25
Kuwait
Saudi Arabia
0.83
United Arab Emirates
0.46
Qatar
0.00
Oman
0.00
Bahrain
0.00
0
50
100
150
Source: US Patent and Trademark Office, 2007
200
250
300
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The Networked Readiness Index 2008-2009
Market environment: High tech exports (% total goods exports)
59.38
Philippines
49.68
Hong Kong SAR
49.44
45.14
Singapore
44.60
Taiwan, China
39.42
Malaysia
30.42
Ireland
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Malta
Qatar
0.29
Saudi Arabia
0.07
Oman
0.02
United Arab Emirates
0.02
Bahrain
0.00
0
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Source: The World Bank, 2008
20
30
40
50
60
70
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The Networked Readiness Index 2008-2009
GCC countries vs. top performers in education
Finland
United States
Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
United Arab Emirates
7
5
4
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
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3
2
1
Availability of
scientists and
engineers
Quality of
scientific research
institutions
Quality of math
and science
education
Quality of the
educational
system
Local availability of
Company
University-industry
specialized
spending on R&D
research
research and
collaboration
training services
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The Networked Readiness Index 2008-2009
GCC countries vs. top performers in e-government
strategies
Singapore
Denmark
Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
United Arab Emirates
7
5
4
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
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3
2
1
Government
prioritization of ICT
Government
procurement of
advanced
technology
products
ICT Importance to
government vision
of the future
Government
success in ICT
promotion
Availability of
government online
services
ICT use and
government
efficiency
Presence of ICT in
government offices
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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
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Country
China
Colombia
Guatemala
India
Jamaica
Jordan
Lithuania
Mauritius
Nigeria
Romania
Russian Federation
Ukraine
Vietnam
First inclusion
Rank
Decile
64
57
68
54
56
49
42
51
75
65
61
66
74
9
8
10
8
8
7
6
7
10
9
9
9
10
NRI 2008–2009
Rank
Decile
46
64
82
54
53
44
35
51
90
58
74
62
70
4
5
7
5
4
4
3
4
7
5
6
5
6
Decile
delta
5
3
3
3
4
3
3
3
3
4
3
4
4
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The Networked Readiness Index
The most dynamic regions over the years
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Variations in Decile ranks of Countries from 2001-02 to 2008-09
Regions *
First inclusion
Rank
Decile
NRI 2008–2009
Rank
Decile
Advanced Economies
Africa
Central & Eastern Europe
CIS and Mongolia
Developing Asia
Middle East
Western Hemisphere
14.5
60.5
37
63.5
59
54.5
51
15.5
109
58
90.5
77.5
47
79.5
2
8.5
5.5
9
8
7.5
7
2
9
5
7
6.5
4
6.5
Decile
delta
–
-0.5
0.5
2
1.5
3.5
0.5
* IMF’s classification
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The Global Information Technology Report
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Mobility 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 egovernment services and ICT to alleviate economic and social
problems.
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The Global Information Technology Report
Mobility in a networked world
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)
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Mobile Telephony: A Critical Enabler of Networked Readiness? By Thierry Geiger
and Irene Mia (World Economic Forum)
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 Report
Focus on best practices: Selected case studies
How Outsourcing Can Help Mobilize Talents Globally: Egypt’s
Success Story
IT Korea: Past, Present, and Future
By 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)
Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
By Nagwa El Shenawy (Ministry of Communications and Information Technology,
Egypt) and Bruno Lanvin (INSEAD, eLab)
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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Muscat| December 21st-23rd, 2009
Assessing the networked readiness of the GCC countries
Thank You for Your Attention
Visit our interactive website:
http://www.insead.edu/v1/gitr/wef/main/home.cfm
The Global Information Technology Report 2008-2009 is fully
available for download on our website for the first time!
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