The United States, South Korea, and the United Kingdom are the three countries most prepared for the Internet of Things (IoT). Australia is ranked fourth on the list followed by Japan.
This is according to the International Data Corporation’s Updated G20 Internet of Things Development Opportunity Index Ranking. The IDC’s original index was first published in 2013 but the updated index includes 13 criteria that IDC views as necessary for sustained development of the IoT and reflects each nation’s economic stature, technological preparedness, and business readiness to benefit from the efficiencies linked to IoT solutions.
The IDC chose the G20 countries for IoT assessment because it considers these countries in a position to develop IoT and leverage the opportunities it implies. “Not only do these countries exhibit a rich composition and quality of overall economic stature, business readiness, and technological preparedness, but they are also a set of countries with eclectic needs for the efficiencies that IoT solutions can create,” states the press release.
The study used measures such as ease of doing business, government effectiveness, innovation, and cloud infrastructure, IoT-specific spending, start-up procedures, government effectiveness and regulatory quality, innovation and education as well as GDP and technology spending as a percentage of GDP.
The U.S. scored high on measures such as ease of doing business, government effectiveness, innovation, and cloud infrastructure, as well as GDP and technology spending as a percent of GDP. South Korea, despite a modest GDP, scored extremely well on IoT-specific spending and has a business environment that fosters innovation and promotes attractive investment opportunities. Similarly, the U.K. scored very highly on measures of ease of doing business, government effectiveness, regulatory quality, start-up procedures, innovation, and broadband penetration.
The IDC’s assessment of the G20 nations’ capacity to develop IoT opportunities reveals that there is no direct relationship between GDP size and readiness for IoT. Australia is a point in case. Despite its relatively small GDP, Australia scored exceptionally high on ease of doing business and start-up procedures, government effectiveness and regulatory quality, and innovation and education. The country was ranked fourth on the IDC study, G20 Nations and the IoT: A Comparative Assessment.