The USA is still among the leading technological nations in the world, but hubs including the United Arab Emirates and New Zealand are just a step behind, according to a recent study.
Tufts University’s Fletcher School has analyzed 60 nations to find out the most digitally connected areas in the world. To do so, the researchers first identified the major factors that influenced the advancement of the digital economy – existing institutions, demand, innovation, and change. Based on that, they segmented the countries into four categories: “Stand Outs,” “Stall Outs,” “Break Outs,” and “Watch Outs.”
According to the study, the UAE is a ”stand out’‘ nation. It is home to two unicorn companies, Careem Networks and Souq.com, both valued at $1 billion each last year. Earlier in 2017, Amazon acquired Souq.com. At the same time, the local e-commerce start up Noon.com raised $1 billion in venture capital to launch this year.
New Zealand also took a leading position in the ”stand out” list due to its high level of digitalization and its technological advancement in the recent years. According to CB Insights data, the South Pacific nation has witnessed tech investment grow by a factor of eight since 2011. In 2015, over $61.2 million was invested in 94 New Zealand-based companies.
Billionaire business angel and venture capitalist Peter Thiel recently called the tiny country “utopia.” New Zealand hosts companies like Xero, a multinational accounting software business, as well as Weta; visual effects start up that worked on numerous Hollywood blockbusters, including Lord of the Rings.
The report also concluded that countries that enjoy rapid technological growth usually ranked low on measures of personal freedom. Among the nations included in the “break out” list are China, Saudi Arabia, Malaysia, and Kenya. One common characteristic among them is that the local governments have been active in supporting entrepreneurship and innovation, even as political rights may be absent.
Tufts researchers also admitted that most of the traditional tech hubs such as Sweden, Norway, Denmark, and Switzerland, have experienced difficulties to sustain the growth over time.