South Africa has dropped to number 43 from 37 in 2008, in terms of IT competitiveness globally, with a score of 35.3 out of 100, according to the 2009 IT industry competitiveness index.
The Economist Intelligence Unit study, sponsored by the Business Software Alliance (BSA), reveals the shift in SA's position can be attributed to changes in the country's performance, as well as to improvements in the sources of data used to measure some indicators.
The study shows some figures differ significantly from 2008 to 2009. IT infrastructure, for example, rose from 8.4 to 17.8, while human capital decreased from 39.9 to 31.8.
Denis McCauley, director of global technology research with the Economist Intelligence Unit, says: "Rather than pushing short-term measures designed to boost sector output or support ailing IT producers, policymakers need to remain focused on strengthening the fundamental enablers of long-term sector competitiveness."
Other findings from the study reveal that broadband networks are a vital factor for IT competitiveness, and the competitiveness gap could widen for countries with slower adoption.
Alastair de Wet, chairperson of the BSA SA committee, says: “Broadband availability is becoming increasingly essential to IT sector competitiveness. BSA expects that the recent construction of the Seacom cable and the premise of increased and cheaper broadband could influence the SA rank positively in the next few years.”
Investment in skills development remains a long-term imperative, according to the study, and countries that deliver a combination of IT, business, and language skills training will generate a stronger IT workforce.
The BSA says co-ordinated efforts among governments, universities and IT firms are needed to improve the quality of technology training and expand the pool of potential hires.
The body also notes that protectionism and support for '“national champions” will hinder recovery efforts and longer-term sector competitiveness. It adds that governments must strike a balance between support that encourages industry growth and investment, and that which introduces unfair market practices and protectionism that can harm competitiveness.
Intellectual property protection, according to the BSA, remains critically important to IT competitiveness and as a relatively low-cost way of stimulating long-term economic development.
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