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DIGITAL RISER
REPORT 2020
1
European Center for Digital Competitiveness – Digital Riser Report 2020 » Preface The Covid-19 pandemic has highlighted the importance of digital technologies. In addition, we carefully studied the top three Digital Risers in every region and Companies with a digital business model have been able to navigate through the developed a playbook of best practice case studies. This playbook showcases lockdown without significant revenue loss, or even sustained growth. At the same time, which policies work in driving digital transformation forward, and it aims to enable companies relying on digital infrastructures and processes have been able to keep governments to learn from each other as well as to benchmark and potentially adapt operating smoothly. their strategies for the future. We are in the middle of a digital revolution that is very likely being accelerated by the We hope that this study inspires a broader debate about the necessity for quick and Covid-19 pandemic. The way that governments manage and navigate this transition determined actions around the digital and innovation policies necessary to create will significantly determine how competitive and prosperous their countries will be countries’ future competitiveness. Also, we hope that it fosters learning and exchange in the decades ahead. With new technologies such as 3D printing, Augmented and around the world on the best practices for successful policies in the digital domain. Virtual Reality, Sensors, Artificial Intelligence, Quantum Computing and Robotics, all of which have the potential to disrupt nearly any industry, we will see new growth, new opportunities and a better future. However, we might also see regions that are less able to navigate through such complex transitions and might thus miss these opportunities. To drive this essential transformation, two dimensions are of particular importance: the mindset and the ecosystem of each country. Only if both of these dimensions are Prof. Dr. Philip Meissner Dr. Christian Poensgen sufficiently developed and enable digital and technological progress can successful transformation occur. And since all countries are working on improving these areas, the speed and effectiveness of implementation are very important, in order to be ahead in this transition. Thus, we analyse this speed and effectiveness in the Digital Riser Ranking. Based on data from the World Economic Forum, we analysed how much progress countries have made relative to their global peers in the last three years. The ranking offers a dynamic perspective on the fast-moving field of digital transformation and shows how much can be gained and lost in a relatively short time frame. It also shows that every country can make significant progress independently of the starting point. 4 5
European Center for Digital Competitiveness – Digital Riser Report 2020
» Executive Summary
In the post-Covid-19 world, digital technologies will play a major role – whether it is The top Digital Risers around the world have invested in talent and made innovation
in video conferencing, redesigning supply chains or finding more efficient ways to and entrepreneurship very feasible for companies
organise processes in companies and governments. In this study, we look at how
governments have managed and navigated the transition driven by digital technologies › Indonesia and the Dominican Republic, for example, have invested significantly
between 2017 and 2019. in digital education. Indonesia started a digital talent scholarship programme
to provide certifications to 20,000 digital talents, whilst the Dominican Republic
We have analysed two factors: how much progress countries have made relative started the “One Computer” initiative to give every child access to a laptop at
to their global peers in the last three years, and the best practices of the top Digital school.
Risers 2020 in ten country groups. As such, we highlight developments and initiatives
that may inform political decision-makers around the world on which practices to › Other success factors pertinent to Digital Risers include their ability to attract
implement, based on what has proven successful in their region and beyond. international talent, and so countries such as the Philippines, with their start-up
visa programme, and Indonesia, France and Latvia represent particular success
stories in this regard.
The top Digital Risers in major regions indicate that digital incumbents face new,
dynamic competitors › Digital Risers have made it easy, quick and cheap to start companies. Azerbaijan,
for instance, has reduced the time to start a company, from over 3 days to less
› France, Saudi Arabia and the Philippines are among the top Digital Risers than 1 day, and Latvia has introduced special tax and funding regimes to support
worldwide. These countries may not be the first examples that come to mind when young companies.
it comes to digital, but their underlying policies implemented in the last three years
show a strong and comprehensive push towards digital transformation, which has
created significant results. The top Digital Risers have followed comprehensive, swiftly-implemented plans along
a long-term vision
› While countries such as the United States, Sweden or Singapore are often
perceived as digital champions, our findings indicate that they are not necessarily › Most Digital Risers have shared a deliberate and comprehensive government
dynamic Digital Risers. Only Singapore has managed to improve its relative programme with top-level support, such as La French Tech in France, or the ICT
position in the last three years. In contrast, the United Stated and Sweden have Strategy 2023 and Saudi Vision 2030, respectively, in Saudi Arabia.
actually lost ground over the same period.
› Start-ups have been a key focus area of Digital Risers. Their growth has been
› When analysing the two digital superpowers, namely the United States and China, supported by large-scale initiatives, for example the J-Startup Program in Japan or
our analysis shows that China has gained in digital competitiveness (+50) while the 1000 start-ups movement in Indonesia.
the United States has lost strength in the last three years (-33). For both nations,
the main driver for this development is found in the ecosystem dimension of the › Digital Risers have invested in technology and start-ups. France, for example, has
ranking. set up a new 5 billion Euro fund, and Armenia now supports start-ups with up to
50,000€.
6 7
European Center for Digital Competitiveness – Digital Riser Report 2020
» Methodology
The Digital Riser Report analyses and ranks the changes that countries around the As an example, France – which was the G7’s top Digital Riser – over the last three
globe have seen in their digital competitiveness over the last three years. It builds years has seen an accumulated increase of 95 ranks over the ten items:
upon data from the Global Competitiveness Report, which is published by the World
Economic Forum (WEF) every year.
Ecosystem Change in ranks between 2017 and 2019:
Based on our research, we define a country’s digital competitiveness into two main
dimensions: its ecosystem and its mindset. For both dimensions, the Digital Riser Venture capital availability +16
Report includes five items from the Global Competitiveness Report. For the ecosystem Cost to start a business -1
and mindset dimensions, respectively, these items are: Time to start a business -1
Ease of hiring foreign labour +22
Skillset of graduates +2
Ecosystem
› Venture capital availability Mindset
› Cost to start a business
Digital skills among active population +4
› Time to start a business
Attitudes towards entrepreneurial risk +33
› Ease of hiring foreign labour
Diversity of workforce +10
› Skillset of graduates
Mobile-broadband subscriptions -4
Companies embracing disruptive ideas +14
Mindset
› Digital skills among active population Accumulated change in digital competitiveness (over all ten items): +95
› Attitudes towards entrepreneurial risk
› Diversity of workforce
› Mobile-broadband subscriptions To ensure the comparability of results relative to a comparative baseline, we clustered
› Companies embracing disruptive ideas all countries into nine groups. These include the Group of Seven, the Group of Twenty
and the seven WEF regional groups.
To compare the progress of 140 countries regarding their digital ecosystem, mindset
and overall competitiveness, we assigned equal weight to all of the ten items by Apart from the ranking itself, the Digital Riser Report also analyses the policies
looking at absolute, accumulated change in ranks for each country between 2017 and followed by the top Digital Riser countries. These offer an explorative overview of what
2019 in the Global Competitiveness Report. those countries did to earn their top position in our ranking.
8 9G7
1.
+
France
» At a Glance: The Digital
2. Japan Riser Ranking 2020
3. Canada
-
4. UK
5. USA
1. Armenia
6. Germany
2. Azerbaijan
7. Italy
3. Ukraine
1. Bulgaria
2. Montenegro
3. France
G20
+
1. Saudi Arabia
2. France
3. Indonesia
4. China
5. Argentina 1. Dom. Rep. 1. Philippines
6. Japan 1. Saudi Arabia
2. Argentina 2. Thailand
7. Canada 2. Algeria
3. Jamaica 3. Indonesia
3. Egypt 1. Sri Lanka
8. Korea, Rep.
2. Pakistan
3. Nepal
-
9. Australia
10. Russia Top Risers per Region 1. Seychelles
11. UK
2. Gambia
East Asia and the Pacific
12. Mexico
3. Burundi
13. USA Eurasia
14. South Africa Europe and North America
15. Brazil America and the Caribbean
16. Germany
Middle East and North Africa
17. Italy
South Asia
18. India
19. Turkey 1) Sub-Saharan Africa
20. EU 2)
1) Turkey is not included due to a lack of data on three out of the five mindset items.
11
2) The EU is not included since it is a collection of countries.European Center for Digital Competitiveness – Digital Riser Report 2020
France +95 G7
Japan +30
Within the Group of Seven, France was the top Digital Riser over the last three years,
while Italy and Germany fell significantly behind. Surprisingly, the digital powerhouse
Canada +13
United States dropped in terms of its relative competitive position. When breaking
down the result in the ecosystem and mindset dimensions, France improved the most
UK -6
in both. While Germany’s decline was mainly driven by a decrease in the ecosystem
USA -33 dimension, Italy scored low in the mindset dimension. France's outperformance can
be mainly explained by the launch of a start-up fund of 5 billion euros as well as the
Germany -52 launch of its lighthouse initiative “La French Tech”. Additionally, the advent of a new
president in 2017, who ran on a platform to lower taxes, called France a “start-up
Italy -77 nation,” and announced the goal of 25 French unicorns by 2025, has helped to make
France a top Digital Riser.
12 13European Center for Digital Competitiveness – Digital Riser Report 2020
Saudi Arabia +149
G20 France +95
Indonesia +56
China +52
Within the Group of Twenty, Saudi Arabia was the top Digital Riser, while India and
Argentina +38
Italy fell significantly behind. Interestingly, otherwise comparable countries differed
Japan +30
remarkably with regard to their Digital Riser status: while Argentina ranked fifth, Brazil Canada +13
ranked fifth to last. When breaking down the results, Argentina and Saudi Arabia Korea, Rep. +1
improved the most in the ecosystem and mindset dimensions, respectively. While Australia -2
India’s decline was driven by both the ecosystem and mindset dimensions, Italy scored Russia -4
comparably low for mindset. Saudi Arabia’s outperformance can be mainly explained UK -6
by its “ICT Strategy 2023”, which was launched in 2018 to transform the kingdom into Mexico -28
a digital and technological powerhouse. Furthermore, the smart city project NEOM, to USA -33
South Africa -40
which the government allocated 500 billion dollars, also highlights aspirations around
Brazil -45
the “Saudi Vision 2030”.
Germany -52
Italy -77
India -173
Turkey N/A 1)
EU N/A 2)
1) Turkey is not included due to a lack of data on three out of the five mindset items.
2) The EU is not included since it is a collection of countries.
14 15European Center for Digital Competitiveness – Digital Riser Report 2020
East Asia and the Pacific
Philippines +190
Thailand +67
Indonesia +56 In East Asia and the Pacific, Philippines was the top Digital Riser over the last three
China +52 years, while New Zealand fell significantly behind. Surprisingly, digitally aspiring
Cambodia +32 countries such as Australia and Vietnam decreased in their relative competitive
Japan +30 positions. When breaking down the results, Thailand and the Philippines improved
Mongolia +22 the most in the ecosystem and mindset dimensions, respectively, and whilst New
Brunei +20 Zealand’s decline was mainly driven by the ecosystem dimension, it also fell back in
Singapore +16
terms of its mindset. The Philippines’ outperformance can mainly be explained by its
Taiwan +12
“Innovate Start-up Act” lighthouse initiative, which was passed in 2019 to strengthen,
Korea, Rep. +1
promote and develop an innovative and entrepreneurial ecosystem and culture. Further
Malaysia 0
beneficial initiatives include the introduction of start-up visas and public-private
Australia -2
partnership initiatives, such as the “Start-up Venture Fund” in 2019, which matched
Vietnam -15
investments from investors in local start-ups under certain conditions.
Hong Kong -21
Lao -65
New Zealand -106
16 17European Center for Digital Competitiveness – Digital Riser Report 2020
Eurasia
In Eurasia, Armenia was the top Digital Riser over the last three years, while Georgia Armenia +43
fell significantly behind. Notably, Russia – the region’s economic powerhouse –
Azerbaijan +18
also decreased its relative competitive position. When breaking down the results,
Kazakhstan and Armenia improved the most in the ecosystem and mindset Ukraine +5
dimensions, respectively, and whilst Georgia’s decline was driven by both factors, Moldova +2
Russia lost ground in the ecosystem dimension. Armenia’s outperformance can mainly
Kasakhstan -2
be explained by its “Digital Transformation Agenda 2018-2030” lighthouse initiative,
which put digital at the heart of its economy. Also, education in Armenia holistically Russia -4
focused on independent thinking and technology, and the National Venture Fund, a
Kyrgyz Rep. -29
public-private-partnership, was launched in 2019 with the aim of investing $100mn
over 5-7 years. Lastly, there were extensive investments in education, notably through Georgia -115
the “Model of creative education in new technologies” (TUMO).
18 19European Center for Digital Competitiveness – Digital Riser Report 2020
Bulgaria +130
Montenegro +111
France +95
Latvia +78
Romania +71
Lithuania +62
Luxeambourg +50
Hungary +44
Spain +42 Europe and North America
Canada +13
Denmark +8
In Europe and North America, Bulgaria was the top Digital Riser, while Croatia and
Netherlands -2
Ireland -4
Albania fell significantly behind. Intriguingly, Sweden – which is often considered
Slovenia -5 one of Europe’s most digital countries – only ranked 30th of the 36 countries in this
UK -6 group. When breaking down the results, Montenegro and Bulgaria improved the most
Iceland -8 in the ecosystem and mindset dimensions, respectively. Furthermore, while Croatia’s
Poland -17 decline was driven by the ecosystem dimension, Albania scored the lowest in terms
Switzerland -19 of its mindset. As in the EU country group, Bulgaria’s outperformance can mainly be
Malta -25 explained by its “Digital Bulgaria 2025” lighthouse initiative, which was launched in
Austria -30
2018 as a continuation of the national programme “Digital Bulgaria 2015”. Its goal was
Greece -32
to modernise and implement intelligent IT solutions in all areas of economic and social
USA -33
life. Also, the Digital National Alliance led a lot of initiatives to improve digitalisation
Finland -41
free of charge, for example by ensuring digital skills, aligning business needs and
Germany -52
education and supporting young Bulgarian talents both locally and globally.
Portugal -63
Estonia -67
Belgium -75
Italy -77
Bos. & Herz. -82
Sweden -83
Cyprus -84
Czech Rep. -84
Norway -100
Slovak Rep. -102
Albania -121
Croatia -142
20 21European Center for Digital Competitiveness – Digital Riser Report 2020
Dom. Rep. +177
Latin America and the Caribbean Argentina +38
Jamaica +18
In Latin America and the Caribbean, the Dominican Republic was the top Digital Riser Chile +8
Uruguay -5
over the last three years, while Panama dropped significantly behind. Apart from the
Honduras -15
Dominican Republic, only three countries in this group – Argentina, Jamaica and
Costa Rica -21
Chile – improved on their relative digital competitiveness. When breaking down the
Mexico -28
results, Argentina and the Dominican Republic improved the most in the ecosystem
Venezuela -30
and mindset dimensions, respectively. Panama’s decline was mainly driven by the
Ecuador -43
mindset dimension, but it also scored very poorly in the ecosystem dimension. The Colombia -45
Dominican Republic's outperformance can mainly be explained by its “República Brazil -45
Digital” lighthouse initiative, which was launched in 2017 and took a holistic approach El Salvador -52
to bringing more technology into all aspects of life in the republic, with a focus on Guatemala -68
education, access, job growth and digital transformation. Also, together with the Paraguay -71
República Digital programme, the three largest telecom companies (Claro, Orange, and Nicaragua -108
Viva) announced infrastructure investments in the country, totalling some $355m. Haiti -119
Trin. & Tob. -142
Peru -146
Panama -204
22 23European Center for Digital Competitiveness – Digital Riser Report 2020
Middle East and North Africa
Saudi Arabia +149 Within the Middle East and North Africa group, Saudi Arabia was the top Digital Riser,
Algeria +135 while Iran and Lebanon dropped significantly. The group did comparatively well as
Egypt +114
a whole, as nine out of 14 countries improved their relative digital competitiveness.
Morocco +99
When breaking down the results, Morocco and Saudi Arabia improved the most in
Kuwait +91
the ecosystem and mindset dimensions, respectively. Iran’s decline was mostly
UAE +81
driven by the ecosystem dimension, while it also scored poorly on its mindset.
Serbia +78
Qatar +54
Likewise, Lebanon’s position decreased mostly in the mindset dimension, but the
Tunisia +24 country also did poorly in terms of its ecosystem. As in the G20 country group, Saudi
Israel -1 Arabia’s outperformance can mainly be explained by its “ICT Strategy 2023”, which
Yemen -8 was launched in 2018 to transform the kingdom into a digital and technological
Jordan -9 powerhouse. Furthermore, the smart city project NEOM, for which the government
Lebanon -157 allocated 500 billion dollars, also highlights its aspirations around the “Saudi Vision
Iran -259 2030”.
24 25European Center for Digital Competitiveness – Digital Riser Report 2020
South Asia
Sri Lanka +131
In South Asia, Sri Lanka was the top Digital Riser, while India fell significantly
behind. When breaking down the results, Pakistan and Sri Lanka improved the most
in the ecosystem and mindset dimensions, respectively, and whilst India’s decline
was mainly driven by the ecosystem dimension, it also scored last in the mindset Pakistan +71
dimension. Sri Lanka's outperformance can mainly be explained by its “Innovation
and Entrepreneurship Strategy of Sri Lanka 2018-2022” lighthouse initiative, which
Nepal -44
was launched in 2019 to create a resilient and innovative economy with export
competitiveness, as well as an entrepreneurial society with better jobs. The initiative’s
three strategic objectives included supporting SMEs, building an ecosystem for scaling
up growth-oriented start-ups and modernising the R&D sector, to allow it to be more Bangladesh -49
enterprise-oriented.
India -173
26 27European Center for Digital Competitiveness – Digital Riser Report 2020
Seychelles +277
Gambia +149
Burundi +113
Rwanda +92
Tanzania +55
Cameroon +46 Sub-Saharan Africa
Namibia +44
Zimbabwe +22
In Sub-Saharan Africa, the Seychelles was the top Digital Riser over the last three
Chad +10
+9
years, while Mali and Mauritania dropped significantly. When breaking down the
Nigeria
Ghana 0 results, Gambia and the Seychelles improved the most in the ecosystem and mindset
Lesotho -33 dimensions, respectively. Both Mali and Mauritania’s declines were driven mainly
South Africa -40 by the ecosystem dimension, while Mali also scored poorly in terms of mindset.
Benin -40 The outperformance of the Seychelles can mainly be explained by the launch of the
Uganda -41 Seychelles National Investment Policy, which was adopted in 2018 to allow more
Malawi -41 investments to flow into the country. Also, initatives such as SIDS were put in place
Kenya -52 with the aim of advancing the Seychelles’ transition from fossil fuel to renewable
Guinea -52
energy. The state played a key role in this regard through the national energy company
Senegal -64
PUC, which heavily invested in green sources of energy.
Mauritius -74
Cape Verde -80
Eswatini -90
Zambia -92
Ethiopia -92
Botswana -111
Mozambique -132
Congo -153
Mali -164
Mauritania -185
28 29European Center for Digital Competitiveness – Digital Riser Report 2020 » Country Groups and Regions: Digital Riser Best Practices 30 31
European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
› La French Tech (2013) » Broad range of activities that
include regulations (e.g. French
» Government-initiated global Tech Visa) and international
community and platform to image campaigns to promote
promote entrepreneurship entrepreneurship
» Initiated by Ministry of Digital
Economy and equipped with over
€600m for investments
» Run by civil servants and former
entrepreneurs that shape France’s
digital policy
REGULATIONS
+95
› Immigration law (“2018-778”) that › Since 2008, the status of an auto-
facilitates access to employment for entrepreneur has made it possible to
certain foreign worker profiles create a sole proprietorship quickly
and easily, within a relaxed legal
› Also, new residence permits framework, and reduced the perceived
introduced, such as the multi-annual risk of entrepreneurship
"talent passport" residence permit
and the temporary "student-mobility
programme” residence permit
France
INVESTMENTS
In the Group of Seven, France
› Startup fund over €5bn private capital obtained ranked first of our top 3 Digital
» €2bn of which invested in French » €200m fund towards accelerators
Risers
venture capital funds focusing on with budgets over €10m
late-stage investments
» €3bn invested via French asset › In 2019, President Macron announced
managers specialising in listed the goal of 25 French unicorns by
tech companies 2025
› La French Tech investments
» €400m matching fund for
investments up to €250k when
32 33European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
› J-Startup Program (2018) » The government also established
a ”J-Startup Supporters” system
» The Japanese government of large companies, venture
proposed the goal of establishing capital actors and accelerators to
20 unicorn companies by 2023 advance the initiative
» With the J-Startup Program, the
government aimed to achieve this
goal through the incubation of
promising start-ups expected to
expand business internationally
+30 REGULATIONS
› Simplification of procedures in order in Japan by enabling them to choose
to attract foreign investors to Japan a simple, inexpensive and easy way to
(“one-stop shop” created by Ministry start representative offices
of Economy, Trade and Industry
and the Japan External Trade › Immigration reform to attract nearly
Organisation) 345,000 immigrants with specific
skills over a 5-year period
› Simplification of regulations for
Japan foreign companies wishing to set up
In the Group of Seven, Japan INVESTMENTS
ranked second of our top 3
› As part of its Artificial Intelligence › In 2017, Japan’s government for the
Digital Rise Technology Strategy, Japan allocated first time backed a non-Japanese
a budget for science and technology venture capital firm by investing $35m
of $33bn in 2017, $35bn in 2018 and into “500 Start-ups Japan”
$38bn in 2019
› Privately owned Japanese start-
ups raised a record $2.5bn in 2017,
compared to $579m in 2012
34 35European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
Innovation and Skills Plan (2017) › The plan spanned four areas
» People and skills
› Agenda by the Canadian government » Research, technology and
to spark growth and help it realise commercialisation
its potential as a global leader in » Investment, scale-up and clean
innovation growth
» Program simplification
› Moreover, it stated the explicit goal
to create well-paying jobs and to help
strengthen and grow the middle class
REGULATIONS
› In 2019, the Canadian Parliament
announced plans to add more than
enable social and economic well-
being, e.g. via the “Start-up Visa
+13
1 million new permanent residents Program” and the “Global Skills
each year over the next three years – Strategy”
nearly one per cent of the country's
population › Third biennial plan for the Open
Government Partnership (2016-2018)
› Numerous announcements to make government information and
that regulation was a key policy policies more open and transparent
instrument used by government to
Canada
INVESTMENTS
In the Group of Seven, Canada
› Strategic Innovation Fund (SIF) to › Venture Capital Catalyst Initiative: ranked third of our top 3 Digital
spur innovation by providing funding over $450m supporting Canadian
Risers
for large projects over $10mnm in venture fund investments (e.g. fund-
requested contributions – in total, SIF of-funds and clean technology funds)
contributions amounted to $2bn by
2020
› The Innovation Superclusters
Initiative invested up to $950m to
support business-led innovation
superclusters with the greatest
potential to energise the economy
and become engines of growth
36 37European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
ICT Strategy 2023 (2018) › Broad action plan, including
» Attracting leading international
› Government roadmap for innovation companies
and the digital economy, aiming » Enhancing technical and digital
at developing digital capabilities knowledge
and attracting foreign technical » Promoting R&D in the start-up
investments ecosystem
» Enabling mega-projects
› Featured 13 priorities aligned with
Saudi Arabia’s Vision 2030
REGULATIONS
+149 › The Saudi Arabian Monetary Authority › It also established the Saudi Arabian
(SAMA) introduced a low-value General Investment Authority
contactless payment service to boost (SAGIA), which has been accelerating
digital transactions and e-commerce the process of granting investor
licences. In 2018, SAGIA introduced
› The government helped boost venture a subsidised entrepreneur licence to
capital via Invest Saudi, an initiative to attract start-ups to the kingdom
attract international VCs
INVESTMENTS
Saudi Arabia
In the Group of Twenty, Saudi › Announced a $500bn smart city backed Public Investment Fund (PIF),
project (NEOM) to integrate data notably Uber and Magic Leap
Arabia ranked first of our top 3 analytics and AI into all aspects of
Digital Risers modern living › In 2016, it set up the General
Authority for Small and Medium
› In 2018, it launched the Saudi Venture Enterprises (“Monshaat”) to launch
Capital Company (SVC) with funding co-working spaces, raise the skills
worth $1.33bn, on top of its highly of founders and build a culture of
publicised billion-dollar investments entrepreneurship
in tech companies through its state-
38 39European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
› La French Tech (2013) » Broad range of activities that
include regulations (e.g. French
» Government-initiated global Tech Visa) and international
community and platform to image campaigns to promote
promote entrepreneurship entrepreneurship
» Initiated by Ministry of Digital
Economy and equipped with over
€600m for investments
» Run by civil servants and former
entrepreneurs that shape France’s
digital policy
REGULATIONS
+95
› Immigration law (“2018-778”) that › Since 2008, the status of an auto-
facilitates access to employment for entrepreneur has made it possible to
certain foreign worker profiles create a sole proprietorship quickly
and easily, within a relaxed legal
› Also, new residence permits framework, and reduced the perceived
introduced, such as the multi-annual risk of entrepreneurship
"talent passport" residence permit
and the temporary "student-mobility
programme” residence permit
France
INVESTMENTS
In the Group of Twenty, France
› Startup fund over €5bn private capital obtained ranked second of our top 3
» €2bn of which invested in French » €200m fund towards accelerators
Digital Risers
venture capital funds focusing on with budgets over €10m
late-stage investments
» €3bn invested via French asset › In 2019, President Macron announced
managers specialising in listed the goal of 25 French unicorns by
tech companies 2025
› La French Tech investments
» €400m matching fund for
investments up to €250k when
40 41European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
National Research and Innovation Agency created in 2016 with the goal of
(2019) growing 1,000 start-ups with a
valuation of US$10 billion by 2020
› Government agency to support
investment, thereby creating jobs and › Regarding the latter, it was set up
strengthening SMEs to bolster both to integrate all research (pure and
innovation and research applied), from the basic level to
product innovation
› To improve the former, several
initiatives were taken, e.g. the “1,000
start-ups movement”, a programme
REGULATIONS
+56
› As foreign investors became In 2019, it widened the number of
increasingly attracted to the positions open to expatriate workers,
Indonesian market, the government – consolidated the lists of positions and
starting in 2016 – launched a number significantly simplified the approval
of efforts to ease setting up new process for foreign workers
businesses
› Also, the government increasingly
aimed to attract experienced and
highly-skilled foreign workers.
Indonesia
INVESTMENTS
In the Group of Twenty,
Indonesia ranked third of our › Indonesia has several education and › In 2019, the government increased
top 3 Digital Risers training institutions that seek to build its focus on providing high-speed
a strong talent pool for the tech and internet across the country, e.g. via
start-up scene. For example, in 2019, the state-funded Palapa Ring project
the government invested $7.7mn – the construction of an optical fibre
into a digital talent scholarship network throughout the country to
programme to provide certifications improve internet access
to 20,000 digital talents
42 43European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
Innovative Startup Act (2019) for start-ups and enablers
› Aimed to strengthen, promote › It included the Start-up Grant Fund
and develop an innovative and and Start-up Venture Fund and
entrepreneurial ecosystem and aimed at fostering the 2015 “Start-up
culture Roadmap”, which stated the long-term
goal of 500 Philippine start-ups with a
› At the heart of the Act was the total funding of at least $200m
Philippine Start-up Development
Programme (PSDP), which offered
programmes, benefits and incentives
REGULATIONS
› In 2019, the government announced
startup visas for owners, employees,
and enablers will be prioritized or
expedited
+190
and investors that are valid for
five years and renewed with three- › The government also directed its
year validity as part of the Startup education institutions to integrate
Assistance Program 2019-2023 that it entrepreneurship in their curricula and
announced in 2018 to provide grants as well as incentives
to academic institutions
› Moreover, applications for state
services of promising startups
Philippines
INVESTMENTS
In East Asia and the Pacific, the
› In 2019, the Start-up Venture Fund › Additionally, the state provided a Philippines ranked first of our
announced half of the targeted number of subsidies, e.g. for the use
top 3 Digital Risers
$5m by matching investments from of office spaces, facilities, equipment,
selected investors to local start-ups services and repurposed government
spaces
› The government also aimed to help
start-ups and enablers by providing
incentives such as travel grants and
subsidies for business registration
fees
44 45European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
Thailand 4.0 (2016) › A multitude of initiatives, e.g.
» Start-up Thailand, a national start-
› Economic initiative by the government up promotion platform
aimed at making the country “Industry » Start-up Nation, Southeast Asia’s
4.0-ready” biggest tech conference
› The goal was to defeat middle-income
and inequality traps and to leapfrog
into a dynamic, high-income nation
REGULATIONS
+67 › In 2016, VC firms were enabled to and the Thai SEC created respective
distribute patents more easily to the regulatory sandboxes
most suitable businesses; Moreover,
the government granted the private › In 2016, the government announced
sector access to state funding for the waiving of dividend and income
R&D in new technologies taxes for VC firms for up to 10
years, to pave the way for higher
› To accelerate developments in fintech investments
and regtech, the Bank of Thailand
INVESTMENTS
Thailand
In East Asia and the Pacific, › In 2016, the government announced for innovation development in
a $570m venture fund for start-ups government services
Thailand ranked second of our in ten supported industries, including
top 3 Digital Risers digital, next-generation cars and › Also, the government announced it
smart-electronics would invest heavily to deliver fibre-
optic broadband to all of the country’s
› In 2019, the government set up 75,000 villages
the Government Innovation Lab to
deploy a citizen-centric approach
and focused public collaboration
46 47European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
National Research and Innovation Agency created in 2016 with the goal of
(2019) growing 1,000 start-ups with a
valuation of US$10 billion by 2020
› Government agency to support
investment, thereby creating jobs and › Regarding the latter, it was set up
strengthening SMEs to bolster both to integrate all research (pure and
innovation and research applied), from the basic level to
product innovation
› To improve the former, several
initiatives were taken, e.g. the “1,000
start-ups movement”, a programme
REGULATIONS
+56
› As foreign investors became In 2019, it widened the number of
increasingly attracted to the positions open to expatriate workers,
Indonesian market, the government – consolidated the lists of positions and
starting in 2016 – launched a number significantly simplified the approval
of efforts to ease setting up new process for foreign workers
businesses
› Also, the government increasingly
aimed to attract experienced and
highly-skilled foreign workers.
Indonesia
INVESTMENTS
In East Asia and the Pacific,
› Indonesia has several education and the state-funded Palapa Ring project Indonesia ranked third of our
training institutions that seek to build – the construction of an optical fibre
top 3 Digital Risers
a strong talent pool for the tech and network throughout the country to
start-up scene. For example, in 2019, improve internet access
the government invested $7.7mn
into a digital talent scholarship
programme to provide certifications
to 20,000 digital talents
› In 2019, the government increased
its focus on providing high-speed
internet across the country, e.g. via
48 49European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
Armenia’s Digital Transformation Agenda competitive private sector;
2018-2030 (2018) Interconnected, collaborative and
functional institutional framework
› Government-introduced framework
with six focus areas to make › In 2019, the government created the
Armenia competitive internationally Ministry of High-Tech Industry
via digital transformation: Smart
government; Creative digital labour
force; Highly efficient, reliable and
affordable infrastructure; Safe and
resistant cyber-space; Internationally
+43 REGULATIONS
› Education was holistically focused on › The government also announced the
independent thinking and technology e-government project EU4Armenia:
» Since 2011, chess has been e-Gov Actions (2017-2020), which
obligatory for all children from 6 to aimed to establish a governmental
8 years interoperability platform
» In 2016, the government
announced it would put robotics
clubs in every school by 2019
INVESTMENTS
Armenia
In Eurasia, Armenia ranked first › Armenia's National Venture Fund, a › Many investments in education,
public-private-partnership set up in e.g. through the “Model of creative
of our top 3 Digital Risers 2019 to invest $100m over 5-7 years education in new technologies”
(TUMO), offering free programming
› Support provided to SME lessons to almost 7,000 Armenians
Development in Armenia (SMEDA) to aged 12 to 18. The programme was
improve the business and investment exported to France and Germany
climates by supporting start-ups with
up to €50,000
50 51European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
Strategic Road Map on the Development › Priorities included driving ICT skills
of Telecommunication and Information and knowledge, mobile infrastructure
Technologies (2016) investment and digital payments
› Comprehensive framework with three
targets:
» Improving governance structures
and strengthening ICT
» Increasing the productivity and
operational efficiency of the
business environment
» Digitising government and social
environments +18
REGULATIONS
› The government adopted a › In 2018, reforms made it easier to
migration code in 2013 that removed start and conduct business:
restrictions on obtaining work » Starting a business made feasible
permits, residence permits and visas online – in 0.5 instead of 3.5 days,
and free of cost
› In 2016, changes were made to the » Favourable tax schemes, e.g.
labour law filing for work contract social security contributions –
Azerbaijan
amendments and terminations online down to 15% from 22%
In Eurasia, Azerbaijan ranked
INVESTMENTS second of our top 3 Digital
Risers.
› Azerbaijan Digital HUB programme, education in the country
conducted with AzerTelecom, to
export innovations and digital › In 2018, the government established
services under the 'Made in the Innovation Agency to enable
Azerbaijan' brand to neighbouring innovation in the business sector –
regions this included supporting start-ups
through grants, concessional loans
› In 2017, the government announced and venture capital funds
its draft of the "Electronic school”
programme that gathered 50
educational institutions to digitalise
52 53European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
Concept for development of the digital › The draft focused on two major
economy and society for 2018-2020 aspects:
(2018) » Digital infrastructure (notably,
broadband internet)
› Strategy draft envisioning transition » Digital transformation in different
from a resource-based economy to key areas, e.g. education, ecology,
high-tech production with efficient medicine, a cashless economy
processes and higher GDP growth and transportation
through the introduction of ICT
+130
REGULATIONS
› In 2018, the Ukrainian authorities › In the same year, it announced
began issuing 4G licences, which plans to sell hundreds of interesting
allowed internet infrastructure to facilities to investors as part of a
grow and improve considerably large privatisation process – as well
as fostering the development of 5G
› In 2019, the government announced standards in Ukraine
simplifications to doing business
by removing restrictions in labour
relations and capital flows
INVESTMENTS
Ukraine
In Eurasia, Ukraine ranked third › In 2019, the government launched » During subsequent stages, the
the Ukraine National Start-up Fund, a most successful start-ups were
of our top 3 Digital Risers public initiative to support innovation eligible to receive soft loans
projects
» The fund’s resources amounted to
some $14m
» The fund would initially use this
money to disperse grants between
$25,000 and $75,000 to promising
Ukrainian start-ups
54 55European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
Digital Bulgaria 2025 (2018) › Six key priority areas for action
» Digital networks and services
› Continuation of the national » A dynamic and innovative digital
programme “Digital Bulgaria economy
2015”, aimed at modernising and » Enhancement of digital skills
implementing intelligent IT solutions » Effective and high-quality
in all areas of economic and social e-services for businesses
life » A secure cyber ecosystem
» Internet governance
REGULATIONS
› In 2018, coding was announced to lowered financial requirements for
+130
become obligatory in primary schools investments
» Further government initiatives
› Investment Promotion Act (IPA) that granted firms benefits regarding
introduced the principle of equality social security, taxes and
between Bulgarian and foreign vocational education
citizens and entities » Many incentives for investments
» High-tech sectors were defined under the IPA, e.g. grants for R&D
as preferential by the Bulgarian and favourable prices on public
state and therefore came with land
INVESTMENTS Bulgaria
In Europe & North America,
› The Digital National Alliance (DNA) » Facilitating young people to
– founded in 2014 – led a lot of access digital technologies to Bulgaria ranked first of our top
initiatives to improve digitalisation communicate and co-create with 3 Digital Risers
free of charge, with a number of aims, people across Europe
e.g. » Helping young people to find new
» Ensuring digital skills job opportunities
» Aligning business needs and
education
» Supporting young Bulgarian
talents both locally and globally
56 57European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
Strategy on Innovative Activity (2016) › Six thematic priorities, namely
energy, agriculture and food,
› Comprehensive strategy, including: sustainable development and
tourism, information-communication
1) Capacities for innovation and technologies, medicine and health of
technological development people and new materials, products
2) Instruments for networking and services
and cooperation of actors in the
innovation system
3) Potential for innovation in the
business sector
+111 REGULATIONS
› Montenegro started to relax its › Further assorted measures
traditionally strict rules linked to introduced to eliminate legal
foreign employment obstacles included developing
advanced financial systems,
› The country also started to work encouraging and attracting talents
on creating a more favourable and fostering entrepreneurial culture
environment toward the development and access to markets through
of the private sector by easing innovative and entrepreneurial
regulations, as well as ceasing to projects
favour state-owned firms
Montenegro
INVESTMENTS
In Europe & North America,
Montenegro ranked second of › In 2018, Montenegro launched the » Legal solutions for a favourable
our top 3 Digital Risers Start-up Company Incentive Program environment for start-ups
» Organisational models for
› It became the first country in the functioning ecosystems
Western Balkans region to apply for » Schemes to fund start-ups and
and receive support under the EC other actors in the ecosystem
Policy Support Instrument, and it
proposed interventions in the policy
area related to the formation of start-
up ecosystems, including:
58 59European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
› La French Tech (2013) » Broad range of activities that
include regulations (e.g. French
» Government-initiated global Tech Visa) and international
community and platform to image campaigns to promote
promote entrepreneurship entrepreneurship
» Initiated by Ministry of Digital
Economy and equipped with over
€600m for investments
» Run by civil servants and former
entrepreneurs that shape France’s
digital policy
REGULATIONS
+95
› Immigration law (“2018-778”) that › Since 2008, the status of an auto-
facilitates access to employment for entrepreneur has made it possible to
certain foreign worker profiles create a sole proprietorship quickly
and easily, within a relaxed legal
› Also, new residence permits framework, and reduced the perceived
introduced, such as the multi-annual risk of entrepreneurship
"talent passport" residence permit
and the temporary "student-mobility
programme” residence permit
France
INVESTMENTS
In Europe & North America,
› Startup fund over €5bn private capital obtained France ranked third of our top 3
» €2bn of which invested in French » €200m fund towards accelerators
Digital Risers
venture capital funds focusing on with budgets over €10m
late-stage investments
» €3bn invested via French asset › In 2019, President Macron announced
managers specialising in listed the goal of 25 French unicorns by
tech companies 2025
› La French Tech investments
» €400m matching fund for
investments up to €250k when
60 61European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
República Digital (2017) products, updated daily
» Also, it ensured the automatic
› Holistic approach taken by the renewal of the health registry
government to bring more technology available to all citizens
into all aspects of life in the republic,
with a focus on education, access, job
growth and digital transformation
» It included seven public online
services, e.g. an app for citizens to
compare the prices of household
+177 REGULATIONS
› Together with new and better transactions, e.g. taxes and bus
services, the República Digital fares
programme explicitly announced » Increasing the transparency of
less red tape in a number of areas. online government records
Examples include: » Facilitating the effective use of
» Streamlining the process for digital payments and marketing
registering a business
» Creating a system of electronic
signatures to facilitate
INVESTMENTS
Dominican Republic
In Latin America & the › Together with the announcement of set up to give every child access to a
the República Digital program in 2017, laptop at school
Caribbean, the Dominican the three largest telecom companies
Republic ranked first of our top (Claro, Orange, and Viva) announced › Also in 2017, the government
infrastructure investment in the announced its plan to build 5,000 free
3 Digital Risers country, totalling some $355m. Wi-Fi spots in public parks, squares
and hospitals
› Around 4% of the state budget
was allocated to education, e.g. in
initiatives such as “One Computer,”
62 63European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
Program for Strengthening of the Digital » Broaden offerings and improve
Agenda (2019) the quality of digital government
services
› The objective of the programme » Promote policy measures for
was to improve the productivity digital productive transformation
of the economy by advancing its
digitalisation through actions. The
four key elements set out to:
» Establish a digital agenda
» Strengthen the legal framework
for connectivity
REGULATIONS +38
› Comprehensive entrepreneur’s law an SAS-accredited investment
(“Ley de Emprendedores”) that fund would be tax-deductible for
included a fast-track process for up to 10 per cent of the investor’s
company registrations and tax annual profits
incentives:
» Simplified business entity (SAS)
model that allowed setting up a
business online within 24 hours,
as well as adding partners later
» Up to 85% of any investment in
Argentina
INVESTMENTS
In Latin America & the
› The entrepreneur’s law also included (FONDCE) to finance start-ups and Caribbean, Argentina ranked
support for accelerators as well as VC funds
second of our top 3 Digital
public funds to co-invest with private » Also, it facilitated crowdfunding
investors in order to promote as a source of start-up funding Risers
start-ups
» Technical and financial assistance
for 13 accelerator programmes
with the creation of a new seed
fund scheme
» Fiduciary Fund for the
Development of Venture Capital
64 65European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
Startup Jamaica (2014) Jamaica’s youth into an employment
opportunity for future generations
› Government initiative supported by
the World Bank and contributed to the › Strategically, the initiative aimed to
realisation of the country’s “Vision move Jamaica away from merely
2030” by linking passion for ICT with being a consumer to becoming a
entrepreneurship’s potential producer of digital platforms and
content
› Key element in the government’s
strategy to turn the potential of
+18 REGULATIONS
› In 2019, the government announced › In the same year, it announced the
an online (“one-stop shop”) interface National Identification System (NIDS)
for all government entities involved in to provide a comprehensive and
investment or business facilitation. secure structure to enable digital
As a result, the number of days it transactions and storage of identity
takes to start a business went down information for all Jamaicans
from 15 to 3
INVESTMENTS
Jamaica
In Latin America & the › To become the Caribbean’s first › Support was provided by the Branson
“digital society”, Jamaica invested in Centre of Entrepreneurship-Caribbean
Caribbean, Jamaica ranked the country’s infrastructure together (BCoEC) for entrepreneurs in the
third of our top 3 Digital Risers with the Inter-American Development English-speaking Caribbean region
Bank Groups, e.g. through $68m for a to develop and scale their ideas,
National Identification System (NIDS) including with no-collateral loans
for economic growth with short repayment periods and low
interest rates
66 67European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
ICT Strategy 2023 (2018) › Broad action plan, including
» Attracting leading international
› Government roadmap for innovation companies
and the digital economy, aiming » Enhancing technical and digital
at developing digital capabilities knowledge
and attracting foreign technical » Promoting R&D in the start-up
investments ecosystem
» Enabling mega-projects
› Featured 13 priorities aligned with
Saudi Arabia’s Vision 2030
REGULATIONS
› The Saudi Arabian Monetary Authority › It also established the Saudi Arabian +149
(SAMA) introduced a low-value General Investment Authority
contactless payment service to boost (SAGIA), which has been accelerating
digital transactions and e-commerce the process of granting investor
licences. In 2018, SAGIA introduced
› The government helped boost venture a subsidised entrepreneur licence to
capital via Invest Saudi, an initiative to attract start-ups to the kingdom
attract international VCs
INVESTMENTS
Saudi Arabia
› Announced a $500bn smart city backed Public Investment Fund (PIF), In Middle East & North Africa,
project (NEOM) to integrate data notably Uber and Magic Leap
analytics and AI into all aspects of
Saudi Arabia ranked first of our
modern living › In 2016, it set up the General top 3 Digital Risers
Authority for Small and Medium
› In 2018, it launched the Saudi Venture Enterprises (“Monshaat”) to launch
Capital Company (SVC) with funding co-working spaces, raise the skills
worth $1.33bn, on top of its highly of founders and build a culture of
publicised billion-dollar investments entrepreneurship
in tech companies through its state-
68 69European Center for Digital Competitiveness – Digital Riser Report 2020
LIGHTHOUSE INITIATIVE
Initiative for Digital Transition (2020) » Modernisation of the government
internet network, to ensure liaison
› Initiative by the Ministry of between departments
Microenterprise, Start-ups and the
Knowledge Economy
» Digitisation of central
administration, documents and
administrative forms
» Creation of a control panel for
decision-making and monitoring
government projects
REGULATIONS
+135
› In 2019, the government lifted a rule › Also in 2018, the government
that limited foreign equity stakes up announced a law that made electronic
to 49% of a company’s equity payment terminals obligatory for all
shop owners in the country
› In 2018, it announced an extension
to the scope of a reduced VAT rate of
9% for online sales of digital goods
and certain electronically supplied
services
Algeria
INVESTMENTS
In Middle East & North Africa,
Algeria ranked second of our › In 2020, the government announced up Support Fund and dedicated
top 3 Digital Risers the creation of “the City of Start- technological zones similar to those
ups”, which would constitute a found in Silicon Valley
multi-service technology centre to
strengthen Algeria's place as an
African role model in new venture
creation
› In 2019, the government announced
its goal to create a start-up-friendly
ecosystem, including a Start-
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