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Japan's digital competitiveness has improved slightly, ranking 31st in the 2024 World Digital Competitiveness Ranking by IMD. While this marks a one-spot improvement from the previous year, the country faces significant hurdles in pursuing technological leadership.
Key challenges include businesses' slow adaptation and a shortage of skilled workers. Compared to other Asian nations, Japan lags, with Singapore, South Korea, and Taiwan holding top positions. China has also made significant strides, moving up to 14th place. The World Digital Competitiveness Ranking initiated in 2017, assesses 67 countries across three dimensions: knowledge, technology, and future readiness.
IMD's report highlights Japan's progress in regulatory and technological frameworks, particularly in IT infrastructure with high broadband and 5G penetration. The country's technology ranking improved to 26th, but future readiness declined to 38th due to a lack of business agility. Japan ranked last in company agility. Japan slipped to 31st in the knowledge category due to human resource challenges, including a shortage of internationally experienced and digitally skilled workers. Despite government efforts to promote digitalization and invest in emerging technologies like AI, Japan struggles to establish itself as a digital leader. Last year, Japan incurred a significant digital services deficit, spending billions on cloud services, operating systems, and other digital services from overseas providers.
Key challenges include businesses' slow adaptation and a shortage of skilled workers. Compared to other Asian nations, Japan lags, with Singapore, South Korea, and Taiwan holding top positions. China has also made significant strides, moving up to 14th place. The World Digital Competitiveness Ranking initiated in 2017, assesses 67 countries across three dimensions: knowledge, technology, and future readiness.
IMD's report highlights Japan's progress in regulatory and technological frameworks, particularly in IT infrastructure with high broadband and 5G penetration. The country's technology ranking improved to 26th, but future readiness declined to 38th due to a lack of business agility. Japan ranked last in company agility. Japan slipped to 31st in the knowledge category due to human resource challenges, including a shortage of internationally experienced and digitally skilled workers. Despite government efforts to promote digitalization and invest in emerging technologies like AI, Japan struggles to establish itself as a digital leader. Last year, Japan incurred a significant digital services deficit, spending billions on cloud services, operating systems, and other digital services from overseas providers.
Japan ranked 31st in digital competitiveness, 92nd for English skills
In the 2024 EF English Proficiency Index, Japan was ranked 92nd, down from 87 the previous year. It was its worst showing yet.
The IMD World Digital Competitiveness Ranking - IMD business school for management and leadership courses
The nature of competitiveness constantly evolves, affecting not only how businesses function but how countries perform today and will perform in the future. Economies are experiencing more rapid technological changes than in the past – from 3D-printing, robotics and neuro-technology to...