UK boosts its IT competitiveness

The UK is leading Europe but must catch up with two foreign players before it can claim to offer the best conditions anywhere in the world for the IT industry.



Like Sweden and Denmark, the UK has established itself as one of the world's top five IT players at the expense of eastern nations, to rank third, behind Taiwan and the US.



It has replaced then booted out South Korea from the top five, though its annual growth rate of IT competitiveness lags behind the growth rates of the EU rivals.



Catching up with the world's IT leader - the US, anytime soon seems more unlikely given IT competitiveness in the UK also grew more slowly than in Taiwan, in second place.



Yet the EU stronghold is reason enough for the US not to be complacent, said the Business Software Alliance, sponsor of the IT competitiveness league, compiled by the Economist Intelligence Unit.



"This year's Index shows that IT competitiveness rankings can change very quickly," said Robert Holleyman, the BSA's president.



"The gap between the US and other nations is narrowing as many economies are becoming more competitive and nipping at our heels."



Propping up the bottom of the table was Iran, while India, Russia and China were, despite their IT outsourcing capabilities, low down in the rankings, ranked 48, 49 and 50 respectively.



By region, Asia boasted the strongest R&D environments for IT, best illustrated by Taiwan on 74.3pts compared with the US on 23.7pts, down more than 40% on last year's score.



"Strong leadership and sound policies will be needed for the US to remain the innovation leader," said Mr Holleymen, alluding to the US Presidential election in November.



"A strong tech industry is crucial to America's ability to address almost every economic and social challenge. The tech sector remains one of the primary engines of the US and global economy."



US technology firms were warned that, based on the findings, they will be "adversely affected by slower increases in the number of science and engineering graduates from domestic institutions."



In equally developed nations, sourcing IT "talent" was predicted to be among the "toughest challenges IT producers will face in the coming years" to support their domestic operations.



As well as available skills, a competitive broadband system a robust and transparent legal system, an education system to support risk-taking and internet or international partnerships in IT were billed as the essentials for boosting a nation's IT competitiveness.