How much digitalization is progressing in countries around the world that are undergoing major changes due to the evolution of semiconductors? I would like to make a comparison while each country is promoting its own digitalization.
Which country has the most digitalization in 2020?
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The spread of the new coronavirus has been a significant impetus for countries around the world to digitize. However, the degree of progress varies greatly from country to country. The authors conducted a thorough investigation and classified the current situation of 90 countries and regions around the world into four categories: "outstanding," "stagnation," "rise," and "need attention." What is the difference between countries that have progressed at an overwhelming speed, such as South Korea, Singapore, and Hong Kong, and countries where digitization has not progressed as expected?
In 2020, the spread of the new coronavirus contracted the world economy by 4.4%, while further accelerating a certain trend worldwide. The trend is the progress of digitalization.
In many countries, measures such as lockdown (city blockade), school closures, and industry-wide closures are being implemented frequently, and digital capabilities such as remote education, e-commerce, and telecommuting have become more important than ever.
However, in reality, what is the current situation in the countries of the world? And what actions should governments, businesses and investors take to make outstanding progress in this regard?
To answer these questions, the Fletcher School at Tufts University in the United States, to which we belong, has created the third edition of the "Digital Evolution Scorecard" with the cooperation of Mastercard (the first and second editions are). , Posted on HBR in 2015 and 2017, respectively).
This 2020 version of the scorecard (this time we also prepared an interactive policy simulator) analyzed the economies of 90 countries and regions by combining a total of 160 indicators in four major areas. The four areas are "supply situation," "demand situation," "institutional environment," and "innovation and change."
Specifically, based on data from more than 45 public and private databases and analysis results by the Fletcher School's "Digital Planet" team, the following points were examined for each of the four areas.
-Supply status: How good is the infrastructure (physical infrastructure and digital infrastructure) needed to promote the development of the digital ecosystem? Some of the infrastructure includes, for example, the ease of connecting to the Internet and the quality of roads that are essential for e-commerce.
· Demand status: Are consumers motivated and capable of participating in the digital ecosystem? Do you have the tools and skills you need to be part of the digital economy?
• Institutional environment: Are laws (and government actions) driving the development of digital technology? Isn't it hindering it? Is the government investing to drive digitalization? Are government regulations on the use and storage of data driving or hindering growth?
・ Innovation and change: What is the status of major inputs (human resources, capital, etc.), processes (industry-academia collaboration, etc.) and outputs (new digital products and services with large growth potential) to the innovation ecosystem? Is it?
In this study, based on all of these data, we analyzed the economies of countries and regions around the world on two aspects. There are two aspects: the current progress of digitization and the "momentum" of digitization (the pace at which digitization progressed during the 12 years of 2008-19).
Based on this analysis, the digitization status of countries around the world can be classified into four categories: "outstanding," "stagnation," "rise," and "need attention." The figure below summarizes this.