Study places RP 12th out of 17 in Asia for IT competitiveness

MANILA - The Philippines ranked 12th in the Asia Pacific and 51st out of the 66 countries worldwide in terms of information technology (IT) competitiveness, according to a new study conducted by the Economist Intelligence Unit (EIU) and sponsored by the Business Software Alliance (BSA).

The study, now in its third year, assesses and compares the information technology (IT) industry environments of 66 economies to determine the extent to which they enable IT sector competitiveness.

The study noted that the Philippines’ IT sector improved significantly in the IT infrastructure category and advanced slightly in research and development in 2009 compared to 2008.
However, it declined in support for IT industry development and even more so in the human capital area.

2 steps down
The ratings for the Philippines in terms of business and legal environments remained more or less the same in both years.

Overall, the Philippine ranking fell two notches in the Asia Pacific from 10th in 2008 to 12th in 2009 and four rungs in the world from 47th to 51st.

“In today’s economic climate, it is critical that the Philippine Government continue to support the growth of a strong technology sector. The IT sector remains an important engine of economic growth. It is essential for the government to support innovation and take steps to stimulate technology sector output which can help attract investors and accelerate the country’s economic recovery,” said Atty. Claro Parlade, BSA director for software policy, Asia-Pacific.
Advantage

“Challenges for the Philippine Government and other Asia Pacific countries remain. With broadband access becoming a pre-requisite for many parts of the IT sector, economies with pervasive broadband penetration have a big competitive advantage over those where the infrastructure is lacking,” Parlade said.

“The study shows that economies that have strong legal frameworks for the protection of intellectual property (IP) are generally the IT leaders and score higher in the index.

Economies where IP protection has not been well enforced are not traditionally seen as innovators. Some rely instead on their low-cost labor to remain competitive but this is hard to sustain over time. By improving on the factors that contribute to IT competitiveness, Asian economies will generate long- term economic growth,” Parlade added.

According to the Economist Intelligence Unit, six factors work together to create a sound environment for the IT sector: an ample supply of skilled workers; an innovation-friendly culture; world-class technology infrastructure; a robust legal regime that protects intellectual property; a stable, open and competitive economy; and government leadership that strikes the right balance between promoting technology and allowing market forces to work.