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How is the digital competitiveness measured?

The index evaluates 64 economies based on their readiness to adopt and explore digital technologies for economic and social transformation. The ranking provides insights into how well countries adapt to digital change.

The ranking is based on evaluating three main factors:

Knowledge: This factor measures the ability of a country to understand and develop new technologies. This factor is measured by assessing three sub-factors: 1) Talent: availability of a skilled workforce. 2) Education: effectiveness in education systems. 3) Scientific concentration: the impact of research and development activities.

Technology: This factor assesses how well a country supports and enables technology development. It includes three sub-factors: 1) Regulatory framework: laws and policies promoting digital innovation. 2) Capital: availability of resources for development. 3) Technological framework: infrastructure supporting digital technologies.

Future Readiness: This factor evaluates a country’s preparedness to exploit digital transformation. It includes: 1) Adaptive attitudes: willingness to adopt new technologies. 2) Business agility: the ability of businesses to integrate digital technologies. 3) IT integration: the extent of IT adoption across sectors.

After evaluating three main factors across all 64 countries, they are ranked based on their scores. Scores are calculated from both statistical measures and survey responses from business executives. Each factor is weighted equally to compute an overall score determining the country’s global ranking position.

Why Denmark ranks among the top digitalized nations.

Figure 1. Top 5 countries of IMD Digital Competitiveness ranking 2023.

The USA, Netherlands, and Singapore overtook Denmark in the ranking, taking the first, second, and third places, respectively. Denmark is carefully placed in fourth place. IMD correlates the highest rankings with several factors: adequate digital infrastructure, digital skills and competencies, and a culture that embraces digital innovation. This sounds exactly like what we strive for in Denmark. We have been developing key characteristics to excel in technology adoption for years.

IMD mentions several key rankings amongst 64 evaluated economies, which helped Denmark get fourth place overall. For instance, we got first place in financial services efficiency, second in funding for technological development and IT integration, fifth in talent, and sixth in business agility.

This combined helps us perform strongly in the digitalization process and stand out as one of the digital nations.

How does digitalization help businesses?

Denmark's high ranking in digital competitiveness provides advantages for businesses looking to establish and develop in the country. The advanced digital infrastructure, combined with a culture of innovation, creates an environment where businesses can operate efficiently and scale quickly.

Denmark's top-notch digital infrastructure and high level of IT integration allow businesses to leverage innovative technologies to optimize business processes. Moreover, those technologies open a window to the skilled workforce. This talent pool is crucial for companies that rely on advanced technologies.

Denmark’s robust regulatory framework fosters innovation and digital growth. You can quickly feel that when opening a business since the process can take less than 24 hours from the start of the application to the moment you start making a profit.

Copenhagen Capacity contribution

At Copenhagen Capacity, we are pleased with this ranking and continue to attract businesses and talents to Greater Copenhagen. Rankings like these prove why Copenhagen is a good place to set up your business.

If your business is looking for this top-notch digitalization across all sectors, then don’t hesitate to contact us and explore your options in Denmark!

Dive deeper into the Digital Competitiveness Ranking here: https://www.imd.org/centers/wcc/world-competitiveness-center/rankings/world-digital-competitiveness-ranking/