Page 14 - Service Delivery Review_Volume 14_Number 3_2022

Public Service Digital Skilling

Some developing countries over-perform on

frontier technologies: most lag behind

A
few developing nations are
able to use, adopt and adapt
frontier technologies than
their per capita GDPs would suggest,
but most are lagging behind, ac-
cording to an index of 158 countries
in the United Nations Conference
on Trade and Development’s (UNC-
TAD’s) Technology and Innovation
Report 2021. In the report, “frontier
technologies” are defined as a suite
of technologies that take advantage
of digitalisation and connectivity.
They include artificial intelligence
(AI), the internet of things, big data,
blockchain, 5G, 3D printing, robotics,
drones, gene editing, nanotechnol-
ogy and solar photovoltaics.

“Frontier technologies are redefining
our world, especially our post-pan-
demic future,” according to Shamika
N. Sirimanne, director of UNCTAD’s
Division on Technology and Logistics.
Sirimanne believes that despite some
negative factors associated with these
technologies, such as their potential
to worsen inequality, widen the digital
divide and disrupt socio-political cohe-
sion, they could be transformative in
achieving the UN’s Sustainable Devel-
opment Goals (SDGs). The UNCTAD’s
Technology and Innovation Report rankings and the estimated index rank- The Philippines has a high ranking for
2021 provides a “country readiness ings based on per capita income. The industry, reflecting substantial levels
index” that assesses countries’ pro- greatest overperformer is India, whose of foreign direct investment in high-
gress in using frontier technologies. actual index ranking was 43, while the technology manufacturing, particularly
It considers their capacities in relation estimated ranking based on per capita electronics. Multinational enterprises
to physical investment, human capital income was 108. India thus over per- are attracted by the country’s strong
and technological effort and scores formed by 65 ranking positions, fol- supply chains and solid base of parts
them on their readiness for frontier lowed by the Philippines, which over- manufacturing. The Philippines also
technologies based on five building performed by 57. has pro-business policies along with
blocks: ICT deployment, skills, research a skilled, well-educated workforce and
and development (R&D), industry activ- How did the outliers exceed expecta- a network of economic zones. Overall,
ity and access to finance. tions? China, at position 25, and India, however, the top five overperforming
perform well for R&D. This reflects their developing countries have lower rank-
Overperforming countries abundant supplies of qualified and ings for ICT connectivity and skills. This
The index spotlights developing coun- highly skilled individuals available at a drawback is true for developing coun-
tries that perform better on frontier comparatively low cost. They also have tries as a group.
technologies than their per capita large local markets, which attract in-
GDPs would suggest (Table 1). Their vestment by multinational enterprises.
overperformance is measured as the China’s progress is partly a dividend
difference between the actual index from spending 2% per annum of GDP
on R&D.

14 Volume 14 No.3 of 2022 | SERVICE DELIVERY REVIEW