Ukraine global and digital competitiveness index
Ukraine's economy has suffered significant human and material losses as a result of large-scale armed aggression by the Russian Federation. According to estimates by the Kyiv School, the war unleashed by Russia has already caused direct damage.
| Рубрика | Экономика и экономическая теория |
| Вид | статья |
| Язык | английский |
| Дата добавления | 05.09.2024 |
| Размер файла | 15,6 K |
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State Biotechnological University, Ukraine
Ukraine global and digital competitiveness index
Kruhlova Olena
PhD, Professor, Department of Economics and Business State Biotechnological University, Ukraine
Tverdokhlib Katerynа
Postgraduate Student
Ukraine's economy has suffered significant human and material losses as a result of large-scale armed aggression by the Russian Federation. According to estimates by the Kyiv School, the war unleashed by Russia has already caused direct damage to Ukraine's infrastructure in the amount of $110.4 billion. (as of August 8, 2022) [1]. Nevertheless, for three quarters of Ukrainian entrepreneurs continue to do business, and those who have lost their business plan to resume it [2]. As for the key solutions for the functioning of business, as evidenced by the results of the study of the state and needs of Ukrainian business during the martial law, conducted by the Center for Innovation Development, the Office for Enterprise and Export Development, the national project Action. Business together with Advanter Group with the support of the European Union and in the framework of the Initiative for Economic Recovery, Entrepreneurship and Export Development of Ukraine, 41.6% of businesses plan to further develop and compete through unique business connections, partnerships; 38.9% - by technological innovations; 20.9% - using business innovations [3].
Digital business transformation is one way to develop business and strengthen its competitive advantage, and its effectiveness is determined by general macroeconomic trends in the digitalization of economic relations. The indices used to determine the rating of countries by the level of implementation of digital technologies are shown in Table 1.
economy armed aggression
Table 1
Digital economy rankings to assess levels is forming and developing
|
Index |
Google search engine mentions, thousand units, as of August 2022. |
|
|
Global Innovation Index - GII |
505000 |
|
|
Digital Economy and Society Index - DESI |
374000 |
|
|
Digital Evolution Index - DEI |
186000 |
|
|
IMD World Digital Competiveness Index - WDCI |
98700 |
|
|
ICT Development Index - IDI |
57900 |
|
|
Networked Readiness Index - NRI |
27200 |
|
|
Boston Consulting Group - eIntensity |
6560 |
|
|
Digital Adoption Index - DAI |
1320 |
Formed by yourself
The research Dynamics of Ukraine's Position in the Digital and Global Competitiveness, checked the consistency Ukraine's positions these rankings.
According to the research of Ukraine's position World Digital Competitiveness Ranking (WDCI) the conclusion about the positive dynamics of digital technology development and transformation of Ukrainian society as a whole was made. Following the results 2021World Digital Competitiveness Ranking (WDCI) shows that Ukraine ranked 54th, having risen by 4 positions compared to 2017. During the study period (2017-2021) Ukraine has improved its position on all factors of the rating. Most of all - on the factor "Knowledge" - by 8 positions. For the factors "Technology" and "Future readiness" the changes are not so significant, namely by 4 and 3 positions respectively (Table 2).
Table 2
Ukraine's position of World Digital Competitiveness Ranking 2017-2021.
|
Index |
2017 |
2018 |
2019 |
2020 |
2021 |
Rating changes 2017-2021 |
|
|
Overall Rating |
60 |
58 |
60 |
58 |
54 |
+6 |
|
|
1. Knowledge |
45 |
39 |
40 |
38 |
37 |
+8 |
|
|
1.1 Talents |
57 |
55 |
57 |
52 |
46 |
+11 |
|
|
1.2 Training and education |
26 |
22 |
21 |
19 |
18 |
+8 |
|
|
1.3. Scientific concentration |
45 |
40 |
49 |
50 |
55 |
-10 |
|
|
2. Technology |
62 |
61 |
61 |
59 |
58 |
+4 |
|
|
2.1 Regulatory framework |
56 |
54 |
54 |
54 |
46 |
+10 |
|
|
2.2 Capital |
62 |
61 |
62 |
59 |
55 |
+7 |
|
|
2.3 Technology base |
60 |
57 |
60 |
58 |
57 |
+3 |
|
|
3. Future readiness |
61 |
61 |
62 |
61 |
58 |
+3 |
|
|
3.1 Adaptive relationships |
58 |
53 |
59 |
56 |
56 |
+2 |
|
|
3.2 Business flexibility |
56 |
53 |
45 |
51 |
45 |
+11 |
|
|
3.3 IT-integration |
60 |
61 |
61 |
62 |
61 |
-1 |
Based on [4]
Ukraine's positions in digital and global competitiveness rankings were found to have a similar trend. During 2017-2021, Ukraine steadily improved its positions in the above ratings. Ukraine steadily improved its position in these ratings. At the same time, Ukraine's position in the digital rating changed more dynamically. During 2019 - 2021, Ukraine rose by 6 points in the digital competitiveness ranking, while in the global competitiveness ranking its position remained unchanged (Table 3).
Table 3
|
Ranking of Ukraine's digital and glo |
aal competitiveness |
|||||
|
Index |
2017 |
2018 |
2019 |
2020 |
2021 |
|
|
Ranking Ukraine's position: Global Competitiveness (GCI) |
60 |
59 |
54 |
55 |
54 |
|
|
World Digital Competitiveness index (WDCI) |
60 |
58 |
60 |
58 |
54 |
Based on [4]
Correlation analysis method was used to study the relationship between the activity of digital technology development and competitiveness of the economy. The calculated correlation coefficient (0.46) showed a direct marked relationship between the levels of digitalization of Ukrainian society and the competitiveness of the Ukrainian economy in the world market.
References
The total amount of direct documented damage to infrastructure is $110.4 billion, the minimum needs for the restoration of destroyed assets have increased to $188 billion. (2022). Retrieved from: https://kse.ua/ua/about-the-school/news/zagalna-suma-pryamih-
zadokumentovanih-zbitkiv-infrastrukturi-skladaye-110-4-mlrd-minimalni-potrebi-u- vidnovlenni-zruynovanih-aktiviv-zrosli-do-188-mlrd/
Ukrainian business resumes payments to employees and contractors - a survey. (2022). Retrieved from: https://kse.ua/about-the-school/news/ukrayinskiy-biznes-vidnovlyuye- viplati-pratsivnikam-ta-pidryadnikam-opituvannya/
The state and needs of business in the war: the results of the survey in July. (2022). Retrieved from: https://business.diia.gov.ua/cases/novini/stan-ta-potrebi-biznesu-v-umovah-vijni- rezultati-opituvanna-v-lipni
IMD World Digital Competitiveness Ranking 2021. (2021). Retrieved from:https://www.imd.org/centers/world-competitiveness-center/rankings/world-digital- competitiveness/
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