Executive Summary

Introduction

Since May 2000 the National Office for the Information Economy (NOIE) has published a statistical compendium presenting a range of data on Australia's progress in the emerging Information Economy.  The current report is the 5th edition since the project's inception.  In a change from past practice this edition presents international benchmarking data in a new format - "the NOIE Index." The Index ranks fourteen key countries across twenty-three statistical indicators relating to progress in the Information Economy with each country receiving a final score for ranking purposes.

A key element of any index is the availability of timely and comprehensive statistical data. Where possible we have used data from a single source to minimise errors associated with comparing data collected via different surveys.  In some cases country level data is not available for specific indicators - in such cases the indicator has been excluded from the calculation of an average score for that country. The range of indicators and number of countries included in the NOIE Index will be expanded over time, however, as with any benchmarking exercise, the availability of reliable and timely data will be a critical factor in this process.

The data presented in the NOIE Index is summarised in the following table.  For each country the table presents:

• individual scores for each indicator;
• a total score calculated across all indicators;
• an average score, which is used to produce the final country ranking, calculated by taking the total number of points each country received and dividing by the number of indicators for which data is available; and
• a final ranking from 1 to 14 (14 being the lowest rank).

Weighting and scores

Each indicator is given equal weighting in terms of its contribution to the final ranking of countries.  Depending on the type of indicator, three different scoring methodologies have been adopted.  Firstly, for the majority of indicators comprising the NOIE Index, individual country scores are derived by converting penetration levels (percentage take up) directly to points.  For example, if a country is estimated to have 72% of its population 16 years and over with Internet access then that country receives 72 points for that specific indicator.  Secondly, in cases where the indicator presents comparative data on the cost of Internet access, the country with the cheapest Internet access receives the maximum number of points (in this case 100 points). All other countries receive a proportion of the maximum number of points available on the basis of their position relative to the country with the cheapest Internet access price.  For example, in terms of the indicator Price of 40 hours of Internet access at peak times (p 27) the US was the cheapest country recording $US23.8 per 40 hours of Internet use.  The US therefore received the maximum score (100 points).  Ireland was the most expensive country recording $US75.4, approximately 3.2 times more expensive than the US.  On this basis Ireland received 32 points (100 /3.2).  Thirdly, in cases where the disparity in access between males and females and different age groups is measured, points have been allocated on the basis of the difference in access levels, eg. for Australia where 73% of males and 72% of females have Internet access, the score is 100 - (73 - 72) = 99. 

* Combined score
Leading score for each indicator in bold numbers.

Summary rankings

Most of the countries selected for benchmarking against Australia have demonstrated a high level of adoption and use of technologies such as the Internet, with significant levels of economic and social activity now occurring online.  Although this data is not presented in this Index, the populations of these countries are generally characterised by high educational attainment levels and relatively high incomes, which according to the National Centre for Social and Economic Modeling (NATSEM) study, Barriers to the Take-up of New Technology (Discussion Paper no. 53 November 2000), are critical factors influencing an individual's decision to go online.  However for the majority of countries benchmarked there is still significant room for improvement with large sections of their respective populations remaining outside the Information Economy, that is, either having access to the Internet and not using this resource, or not having the opportunity to use the Internet due to lack of access.

While the difference between the second, third and fourth ranked countries can be measured in a handful of points, clearly the United States (US) stands out in the Index with consistent performances across the range of Index indicators.  The US, Scandinavian countries, Australia, New Zealand and the smaller countries of South East and East Asia are in a strong position to take advantage of the potential benefits of the emerging global Information Economy, having the beginnings of the necessary infrastructure and a critical mass of people actively online.  The US, Sweden, Australia and Norway occupy the top four positions in the NOIE Index with an average score of 67.3, 58.4, 55.7, and 53.3 points respectively.  Other countries recording a high Index score included New Zealand on 52.8 points, Hong Kong on 51.5 points, Singapore and South Korea on 51.1 and 50.5 points respectively.  The remaining two positions in the top ten were taken by Taiwan (48.5 points) and the UK (46.5 points).  The UK was followed closely by Germany on 45.4 points and Ireland on 43.8 points, while France and Italy occupied the last two positions with significantly lower scores, 39.15 and 38 points respectively.

Table: Summary of country rankings and scores

 Australia's overall score of 55.7 places it in close proximity to the Index leaders.  Data shows that Australians are major adopters of Information Economy enabling technologies such as the Internet, computers, and mobile telephones, and increasingly use the Internet for a wide range of activities associated with their day-to-day lives.