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The future of the economy and work is digital, but in a global ranking of digital competitiveness Australia has fallen one place to 14th in a study of 63 countries.
Key points:
- Australia ranks only 54th out of 63 nations in communications technology and 38th for internet speeds
- The nation is 44th for employee training and 53rd in graduating scientists
- The US topped the digital competitiveness rankings, followed by Singapore and Sweden
The slide is comprehensive: in 2015 Australia was ninth. When the report compares countries with a similar population, Australia fell from 3rd to 5th, and for those in the Asia-Pacific region from 2nd to 5th: Australia has spent the past few years sliding down the ladder.
"It doesn't surprise me. It's as predictable as gravity," said digital strategist Rowena Martin, who works with universities and major companies to help them compete in the new business age.
"The investment in digital literacy skills really hasn't been there. From the federal government there's been cuts and a lack of support for universities.
"The main thing is there's going to be a really rude surprise: Australian businesses are going to lose profitability."
Contributing to the fall are poor showings in the fields of business agility, tech skills and communications.
The World Digital Competitiveness rankings are collated by Swiss business school International Institute for Management Development (IMD).
Australia's communications technology ranking is a woeful 54th out of the 63 nations surveyed. In internet bandwidth and speed Australia ranks 38th.
The Committee for the Economic Development of Australia (CEDA) released the results, and chief executive Melinda Cilento said it showed the need for companies and governments to invest if they want the Australian economy to keep up with its neighbours.
"The direction of change is what we should be focussed on," she said.
"We risk being caught short because other countries are racing up the ladder."
In the most recent rankings, Hong Kong and South Korea have entered the top 10. China has jumped from 30th to 22nd and Taiwan leap-frogged Australia, rising from 16th to 13th position.
'Needs to be a focus on tech skills'
The survey has parallels with recent CEDA research that found business leaders placed a much higher priority on technology investment and research and development (R&D) than the general public.
"Business is investing in tech and see it as really important, but the community don't," Ms Cilento said.
"We need to have a serious conversation about education … there really needs to be a focus on tech skills."
Interestingly, Australia's digital slide is not due to a lack of appetite from regular Australians. When it comes to the national uptake of tablets and smartphones, Australia ranks third and ninth respectively.
Australia is on top when it comes to the amount of international students it takes in to educate. But when it comes to educating Australians, the nation ranks just 44th in employee training and a dismal 53rd in graduating scientists.
Ms Murray said Australia's continual slide down the rankings had an impact that was being felt now on "the amount of tax paid, what people are earning", and that would get worse.
"There will be mass redundancies as companies are forced to evolve," she warned.
"But the problem will be, after that, finding people who have those [digital] skills that are needed."
The top five most digitally competitive countries have not changed in this year's survey. The United States retains the title, followed by Singapore, Sweden, Denmark and Switzerland.
Topics: telecommunications, computers-and-technology, university-and-further-education, continuing-education, australia