• Agenda
  • Initiatives
  • Reports
  • Events
  • About
    • Our Mission
    • Leadership and Governance
    • Our Members and Partners
    • Communities
    • History
    • Klaus Schwab
    • Media
    • Contact Us
    • Careers
    • World Economic Forum USA
    • Privacy and Terms of Use
  • EN ES FR 日本語 中文
  • Login to TopLink

We use cookies to improve your experience on our website. By using our website you consent to all cookies in accordance with our updated Cookie Notice.

I accept
    Hamburger
  • World Economic Forum Logo
  • Agenda
  • Initiatives
  • Reports
  • Events
  • About
  • TopLink
  • Search Cancel

Global Information Technology Report 2015

  • Report Highlights
  • Networked Readiness Index
  • Networked Readiness Dataset (xls)
  • Blogs and Opinions
  • Infographics and Shareables
  • Press Releases
  • [ — Divider — ]
  • Preface
  • Acknowledgments
  • Foreword – John Chambers (Cisco Systems)
  • Foreword – Cesare Mainardi (Strategy&, formerly Booz & Company)
  • Executive Summary
  • Part 1: Leveraging ICTs for Shared Prosperity
    • 1.1 The Networked Readiness Index 2015: Taking the Pulse of the ICT revolution
      • Networked Readiness Framework
      • Structure and Methodology
      • Analysis and Key Findings
      • Country Highlights
      • Conclusions
      • References
      • Appendix: Structure and computation of the Networked Readiness Index 2015
    • 1.2 – ICTs, Income Inequality, and Ensuring Inclusive Growth
    • 1.3 – Understanding Digital Content and Services Ecosystems: The Role of Content and Services in Boosting Internet Adoption
    • 1.4 – ICTs for Inclusive Growth: E-Entrepreneurship on the Open Internet
    • 1.5 – Creating the Next Wave of Economic Growth with Inclusive Internet
    • 1.6 – Developing the Network for Growth and Equality of Opportunity
    • 1.7 – CTs in Schools: Why Focusing Policy and Resources on Educators, not Children, Will Improve Educational Outcomes
    • 1.8 – Big Data Analytics for Inclusive Growth: How Technology Can Help Elevate the Human Condition
    • 1.9 – Connected Healthcare: Extending the Benefits of Growth
    • 1.10 – Designing Technology for Inclusive Growth
    • 1.11 – Digital Inclusion and Economic Development: A Regional Analysis from Brazil
  • Technical Notes and Sources
  • About the Authors
  • Partner Institutes
  • Strategic Partner Acknowledgments
  • [ — Divider — ]
  • Downloads
  • Selected Research
  • Contact Us
Global Information Technology Report 2015 Home
  • Report Home
  • Report Highlights
  • Networked Readiness Index
  • Networked Readiness Dataset (xls)
  • Blogs and Opinions
  • Infographics and Shareables
  • Press Releases
  • [ — Divider — ]
  • Preface
  • Acknowledgments
  • Foreword – John Chambers (Cisco Systems)
  • Foreword – Cesare Mainardi (Strategy&, formerly Booz & Company)
  • Executive Summary
  • Part 1: Leveraging ICTs for Shared Prosperity
    • 1.1 The Networked Readiness Index 2015: Taking the Pulse of the ICT revolution
      • Networked Readiness Framework
      • Structure and Methodology
      • Analysis and Key Findings
      • Country Highlights
      • Conclusions
      • References
      • Appendix: Structure and computation of the Networked Readiness Index 2015
    • 1.2 – ICTs, Income Inequality, and Ensuring Inclusive Growth
    • 1.3 – Understanding Digital Content and Services Ecosystems: The Role of Content and Services in Boosting Internet Adoption
    • 1.4 – ICTs for Inclusive Growth: E-Entrepreneurship on the Open Internet
    • 1.5 – Creating the Next Wave of Economic Growth with Inclusive Internet
    • 1.6 – Developing the Network for Growth and Equality of Opportunity
    • 1.7 – CTs in Schools: Why Focusing Policy and Resources on Educators, not Children, Will Improve Educational Outcomes
    • 1.8 – Big Data Analytics for Inclusive Growth: How Technology Can Help Elevate the Human Condition
    • 1.9 – Connected Healthcare: Extending the Benefits of Growth
    • 1.10 – Designing Technology for Inclusive Growth
    • 1.11 – Digital Inclusion and Economic Development: A Regional Analysis from Brazil
  • Technical Notes and Sources
  • About the Authors
  • Partner Institutes
  • Strategic Partner Acknowledgments
  • [ — Divider — ]
  • Downloads
  • Selected Research
  • Contact Us

Appendix: Structure and computation of the Networked Readiness Index 2015

Share

This appendix presents the structure of the Networked Readiness Index (NRI) 2015. As explained in the chapter, the NRI framework separates environmental factors from ICT readiness, usage, and impact. That distinction is reflected in the NRI structure, which comprises four subindexes. Each subindex is in turn divided into a number of pillars, for a total of 10. The 53 individual indicators used in the computation of the NRI are distributed among the 10 pillars.

In the list below, the number preceding the period indicates the pillar to which the variable belongs (e.g., indicator 2.05 belongs to the 2nd pillar; indicator 8.03 belongs to the 8th pillar). The numbering of the indicators matches the numbering of the data tables at the end of the Report.

The computation of the NRI is based on successive aggregations of scores, from the indicator level (i.e., the most disaggregated level) to the overall NRI score (i.e., the highest level). Unless noted otherwise, we use an arithmetic mean to aggregate individual indicators within each pillar and also for higher aggregation levels (i.e., pillars and subindexes).a

Throughout the Report, scores in the various dimensions of the NRI pillars are reported with a precision of one decimal point. However, exact figures are always used at every step of the computation of the NRI.

Indicators that are derived from the World Economic Forum’s Executive Opinion Survey (the Survey) are identified here by an asterisk (*). All the other indicators come from external sources, as described in the Technical Notes and Sources section at the end of the Report. These are transformed into a 1-to-7 scale in order to align them with the Survey’s results. We apply a min-max transformation, which preserves the order of, and the relative distance between, the scores.b

Networked Readiness Index 2015

Networked Readiness Index =
1/4 Environment subindex
+ 1/4 Readiness subindex
+ 1/4 Usage subindex
+ 1/4 Impact subindex

Environment subindex

Environment subindex =
1/2 Political and regulatory environment
+ 1/2 Business and innovation environment

1st pillar: Political and regulatory environment
1.01 Effectiveness of law-making bodies*
1.02 Laws relating to ICTs*
1.03 Judicial independence*
1.04 Efficiency of legal system in settling disputes*c
1.05 Efficiency of legal system in challenging regulations*c
1.06 Intellectual property protection*
1.07 Software piracy rate, % software installed
1.08 Number of procedures to enforce a contract d
1.09 Number of days to enforce a contract d

2nd pillar: Business and innovation environment
2.01 Availability of latest technologies*
2.02 Venture capital availability*
2.03 Total tax rate, % profits
2.04 Number of days to start a business e
2.05 Number of procedures to start a business e
2.06 Intensity of local competition*
2.07 Tertiary education gross enrollment rate, %
2.08 Quality of management schools*
2.09 Government procurement of advanced technology products*

Readiness subindex

Readiness subindex =
1/3 Infrastructure
+ 1/3 Affordability
+ 1/3 Skills

3rd pillar: Infrastructure
3.01 Electricity production, kWh/capita
3.02 Mobile network coverage, % population
3.03 International Internet bandwidth, kb/s per user
3.04 Secure Internet servers per million population

4th pillar: Affordability f
4.01 Prepaid mobile cellular tariffs, PPP $/min.
4.02 Fixed broadband Internet tariffs, PPP $/month
4.03 Internet and telephony sectors competition index, 0–2 (best)

5th pillar: Skills
5.01 Quality of educational system*
5.02 Quality of math and science education*
5.03 Secondary education gross enrollment rate, %
5.04 Adult literacy rate, %

Usage subindex

Usage subindex =
1/3 Individual usage
+ 1/3 Business usage
+ 1/3 Government usage

6th pillar: Individual usage
6.01 Mobile phone subscriptions per 100 population
6.02 Percentage of individuals using the Internet
6.03 Percentage of households with computer
6.04 Households with Internet access, %
6.05 Fixed broadband Internet subscriptions per 100 population
6.06 Mobile broadband Internet subscriptions per 100 population
6.07 Use of virtual social networks*

7th pillar: Business usage
7.01 Firm-level technology absorption*
7.02 Capacity for innovation*
7.03 PCT patent applications per million population
7.04 Business-to-business Internet use*g
7.05 Business-to-consumer Internet use*g
7.06 Extent of staff training*

8th pillar: Government usage
8.01 Importance of ICTs to government vision of the future*
8.02 Government Online Service Index, 0–1 (best)
8.03 Government success in ICT promotion*

Impact subindex

Impact subindex =
1/2 Economic impacts
+ 1/2 Social impacts

9th pillar: Economic impacts
9.01 Impact of ICTs on new services and products*
9.02 PCT ICT patent applications per million population
9.03 Impact of ICTs on new organizational models*
9.04 Employment in knowledge-intensive activities, % workforce

10th pillar: Social impacts
10.01 Impact of ICTs on access to basic services*
10.02 Internet access in schools*
10.03 ICT use and government efficiency*
10.04 E-Participation Index, 0–1 (best)

Notes

  1. Formally, for a category i composed of K indicators, we have:
    FORMULA1When two individual indicators are averaged (e.g., indicators 1.04) and 1.05 in the 1st pillar), each receives half the weight of a normal indicator.
  2. Formally, we have:
    FORMULA2The sample minimum and sample maximum are, respectively, the lowest and highest country scores in the sample of economies covered by the GCI. In some instances, adjustments were made to account for extreme outliers. For those indicators for which a higher value indicates a worse outcome (i.e., indicators 1.07, 1.08, 1.09, 2.03, 2.04, 2.05, 4.01, and 4.02), the transformation formula takes the following form, thus ensuring that 1 and 7 still corresponds to the worst and best possible outcomes, respectively:
    FORMULKA3
  3. For indicators 1.04 and 1.05, the average of the two scores is used in the computation of the NRI.
  4. For indicators 1.08 and 1.09, the average of the two normalized scores is used in the computation of the NRI.
  5. For indicators 2.04 and 2.05, the average of the two normalized scores is used in the computation of the NRI.
  6. The affordability pillar is computed as follows: the average of the normalized scores of indicators 4.01 Prepaid mobile cellular tariffs and 4.02 Fixed broadband Internet tariffs is multiplied by a competition factor, the value of which is derived from indicator 4.03 Internet and telephony sectors competition index. It corresponds to the score achieved by an economy on this indicator normalized on a scale from 0.75 (worst) to 1.00 (best), using the min-max transformation described above. A normalized score of 0.75 is assigned to an economy with a competition index score of 0, which means that a monopolistic situation prevails in the 17 categories of ICT services considered. A normalized score of 1.00 is assigned to an economy where all 17 categories are fully liberalized. Where data are missing for indicator 4.03 (i.e., Mongolia, Puerto Rico, Timor-Leste, and Venezuela), the score on the affordability pillar, which is simply the average of the normalized scores of indicators 4.01 and 4.02, is used. The competition index score for Taiwan, China, was derived from national sources.
  7. For indicators 7.04 and 7.05, the average of the two scores is used in the computation of the NRI.
Back to Top
Subscribe for updates
A weekly update of what’s on the Global Agenda
Follow Us
About
Our Mission
Leadership and Governance
Our Members and Partners
The Fourth Industrial Revolution
Centre for the Fourth Industrial Revolution
Communities
History
Klaus Schwab
Our Impact
Media
Pictures
A Global Platform for Geostrategic Collaboration
Careers
Open Forum
Contact Us
Mapping Global Transformations
Code of Conduct
World Economic Forum LLC
Sustainability
World Economic Forum Privacy Policy
Media
News
Accreditation
Subscribe to our news
Members & Partners
Member login to TopLink
Strategic Partners' area
Partner Institutes' area
Global sites
Centre for the Fourth Industrial Revolution
Open Forum
Global Shapers
Schwab Foundation for Social Entrepreneurship
EN ES FR 日本語 中文
© 2022 World Economic Forum
Privacy Policy & Terms of Service