FRONTRUNNERS
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COUNTRIES
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ADOPTERS
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STARTERS
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Chart 1: National Digitalization Speed
The GDI examines the correlation between ICT industry maturity and digital economic growth. Our analysis shows that countries with higher GDI scores experience greater economic benefits from ICT development. Our further correlation analysis of GDI score changes and GDP growth across the three clusters reveals that each one-point increase in the GDI score of Frontrunners can boost GDP per capita by US$945, which is 2.1 times the increase observed for Adopters and 5.4 times that for Starters.
Chart 2: Scores of the three clusters in the three major technology enablers of the GDI
To find ways to bridge the digital divide, the GDI research analyzed the performance of the three clusters in three technology enablers (as shown below), revealing that the biggest gap is in ubiquitous connectivity. Frontrunners lead Adopters by 15 points and Starters by 35 points in ubiquitous connectivity. In digital foundations, Frontrunners lead Adopters by 30 points, while the difference between Adopters and Starters is relatively small.
Chart 3: The conversion rate to ICT professionals varies greatly by country
STEM graduates are a major source of the ICT workforce. Research shows that the proportion of STEM graduates in the three clusters of countries is similar at about 25%. However, the conversion rate to ICT professionals varies greatly by country due to the discrepancies in local ICT industry development, which directly impacts available ICT jobs. 95% of STEM graduates can find jobs in ICT or ICT-related fields in Frontrunners. However, in Adopters and Starters, this number drops to 50% and 15%, respectively.
The maturity of the ICT industry is strongly correlated with GDP per capita growth, but the extent of economic benefits varies by country due to their different levels of ICT development. In Frontrunner countries, for example, a one-point increase in GDI score produces 5.4 times the economic value than a one-point increase in Starter countries.
Forward-looking digital infrastructure development serves as a new engine for economic growth. Countries around the world are currently racing to digitalization. Our research found that a one-US-dollar investment in digital transformation results in an 8.3-US-dollar return in a country's digital economy.
The ICT industry is progressing unevenly across countries. However, ubiquitous connectivity can bridge the digital divide. Fixed broadband and mobile broadband can work in concert to maximize the value of the digital economy, and a robust digital foundation and ubiquitous connectivity can reinforce each other, creating a multiplier effect on economic development.
Countries must embrace green energy technologies to gear up for the sustainable growth of their digital economies and large-scale application of AI.
National medium- and long-term ICT plans, supportive industry policies, and moderately advanced investment in digital infrastructure are catalysts for the development of the digital economy.
University graduates with a STEM background account for almost 25% of the total in all surveyed countries, but the rate of their conversion to ICT professionals varies greatly by country cluster: 95% in Frontrunners, 50% in Adopters, and 15% in Starters.
