Cyprus has dropped to 51st place in global digital competitiveness rankings due to challenges in readiness for technological changes, knowledge and innovation, STEM graduates, mobile broadband subscriptions, business agility, big data integration, and academic-commercial knowledge transfer. Despite setbacks, Cyprus shows strength in areas like employment rates of technical workers and gender parity in higher education, highlighting the need for strategic investment to improve its digital standing.
Why has Cyprus’ digital competitiveness declined in global rankings?
Cyprus’ digital competitiveness has declined due to several factors, including a reduction in readiness for future technological changes, a decrease in knowledge and innovation, and a lack of STEM graduates. Other issues include insufficient international student inflow, mobile broadband subscriptions, business agility, big data integration, and limited academic-commercial knowledge transfer.
The Struggle with Digital Advancements
Cyprus has recently experienced a slide in its global standing in terms of digital competitiveness, descending to the 51st position among 64 countries in 2023. The report, which came from the University of Cyprus’ Economics Research Centre (CypERC), indicates a six-spot fall from the previous year, continuing a downward trend for the third year in a row.
The evaluation, which encompasses a wide range of digital aspects, pointed to declines across all examined categories. This year, the country showed a considerable drop in its readiness for future technological changes. Likewise, there was a noted decrease in the knowledge category, reflecting perhaps a systemic issue in the country’s approach to nurturing digital know-how and innovation.
Fluctuating Fortunes
Looking back, Cyprus has seen a fluctuating trajectory in the digital competitiveness landscape. After standing at 54th in 2019, the nation witnessed a climb to the 40th spot by 2020, showing promising progress. However, the subsequent years have seen a reversal of these gains, with the country falling back to the 45th position in 2022, and now further down in 2023.
Persistent challenges have been identified as contributing factors to this year’s ranking. Key among these is the inadequate number of graduates in STEM fields (Science, Technology, Engineering, and Mathematics), which is a crucial determinant of a country’s innovative capacity. Other problematic areas include the net inflow of international students, mobile broadband subscriptions, business agility, and the integration of big data analytics within businesses. Equally concerning is the limited knowledge transfer occurring between academic institutions and the commercial sector, which is essential for fostering a dynamic digital economy.
Areas of Strength Amidst Challenges
Despite the overall decline, Cyprus continues to show resilience in certain areas. For instance, the nation fares well in the employment rates of scientific and technical workers, suggesting a strong demand for such expertise within the workforce. Additionally, Cyprus boasts a high percentage of the population with tertiary education, coupled with commendable gender parity in higher education attainment.
Behind these assessments is the collaboration between CypERC and the Cyprus Employers and Industrialists Federation (Oev), which contributes to the study by the World Competitiveness Centre of the IMD Business School. The digital competitiveness ranking, a comprehensive measure of a country’s digital environment, is based on 54 diverse criteria which include official statistics and opinion surveys.
The Foundations of Digital Competitiveness
The criteria used to gauge digital competitiveness are divided into three fundamental categories: knowledge, technology, and future readiness. Knowledge pertains to the capacity to comprehend and create new technologies, technology indicates the nation’s current digital innovation capabilities, and readiness for the future assesses how well-prepared an economy is to embrace digital transformation.
Understanding where Cyprus stands in these categories can provide insights into the strategic areas that require attention and investment. The digital era demands a proactive approach to innovation and education, and it’s clear that while Cyprus has strengths to build upon, there is a critical need for focused development in key sectors to regain momentum and enhance its competitive edge in the digital domain.
Why has Cyprus’ digital competitiveness declined in global rankings?
Cyprus’ digital competitiveness has declined due to several factors, including a reduction in readiness for future technological changes, a decrease in knowledge and innovation, and a lack of STEM graduates. Other issues include insufficient international student inflow, mobile broadband subscriptions, business agility, big data integration, and limited academic-commercial knowledge transfer.
What areas have contributed to Cyprus’ slide in global digital competitiveness?
The decline in Cyprus’ global digital competitiveness can be attributed to challenges in readiness for technological changes, knowledge and innovation, STEM graduates, mobile broadband subscriptions, business agility, big data integration, and academic-commercial knowledge transfer. These areas have seen setbacks, leading to the country’s drop in rankings.
Are there any strengths that Cyprus exhibits despite the challenges in digital competitiveness?
Yes, despite the challenges, Cyprus shows strength in certain areas. The nation excels in employment rates of technical workers and gender parity in higher education, indicating a demand for technical expertise and a balanced gender representation in educational attainment. These strengths provide a foundation for strategic investment to enhance Cyprus’ digital standing.
What are the fundamental categories used to gauge digital competitiveness, and how can Cyprus improve in these areas?
The fundamental categories used to assess digital competitiveness are knowledge, technology, and future readiness. Cyprus can improve by focusing on nurturing digital knowledge and innovation, enhancing its current digital capabilities, and better preparing for future technological changes. Strategic investments in STEM education, research and development, business agility, and knowledge transfer can help Cyprus regain its competitive edge in the digital landscape.
