In the latest Digital Evolution Index, the UK has been identified as part of a select group of countries classified as the “digital elite” for being highly digitally advanced and progressing rapidly.
The study, produced by The Fletcher School at Tufts University in partnership with Mastercard, assessed 60 countries to evaluate both their current level of digital development and the speed at which they are innovating.
According to Bhaskar Chakravorti, Senior Associate at The Fletcher School, “Adoption, the quality of digital infrastructure and institutions, and innovation collectively shape a country’s digital competitiveness, but governments also play a key role. The report also found that consumers’ trust in digital technologies correlates with digital competitiveness.”
The Index evaluates four main dimensions using 170 distinct indicators:
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Supply — internet access and infrastructure
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Consumer demand for digital technologies
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Institutional environment — government policies, laws and resources
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Innovation — investment in R&D, digital start-ups and related activity
Alongside the UK, seven other nations were singled out for strong performance across these measures: Singapore, New Zealand, Estonia, Japan, Israel, Hong Kong and the United Arab Emirates.
“This report shows the UK is the undisputed tech hub of Europe and confirms our place as a digital world leader and centre for excellence in innovation and growth,” said Matt Hancock, Minister of State for Digital. He added that the UK tech sector attracts more investment than any other European country and highlighted a recent record of £5.6 billion invested in London tech over six months.
Another group identified in the Index features countries with a high level of digital development but slower momentum, a pattern the report calls “Stall Out.” These countries—such as the United States, Germany and several Nordic nations—would benefit from renewed emphasis on innovation to regain pace.
The “Watch Out” category describes countries facing both low digitalisation and weak momentum. The report notes that some of these nations show notable creativity despite confronting severe infrastructure gaps, institutional constraints and low consumer demand sophistication. Examples include Greece, South Africa, Egypt and Pakistan.
Of particular interest are the “Break Out” countries, which are evolving quickly from a low starting point and have the potential to become strong digital economies. These nations often make progress in innovation or consumer demand but remain constrained by weak infrastructure and institutions. China, Russia and India fall into this group.
Countries in the Digital Evolution Index are ranked by measures such as the number of new internet users, the perceived value of digital services, and the level of trust cultivated in their digital environments.
Ajay Bhalla, president of global enterprise risk & security at Mastercard, commented: “We all know technology can do more to improve economies and make our lives better, but growth is only achievable if everyone has confidence in the developing ecosystem. In our pursuit of a truly connected world, trust and security are critical to successful digital development. The UK is an exemplar in this.”
What are your thoughts about the Digital Evolution Index 2017 results? Share your thoughts in the comments.