Is the US Losing Its Edge in Tech?

The U.S. still has the world's most competitive information technology industry, but its lead is slipping, according to a new study conducted by the Economist Intelligence Unit (EIU) for the Business Software Alliance (BSA). The study, released Sept. 16, ranks 66 countries in six areas, including the availability of skilled labor, the "innovation friendliness" of a nation's culture, and the strength of its legal protections for intellectual property. The U.S. scored highest overall, but its rating fell from last year, and it was No. 1 in only three of the categories. "America should be proud that it's No. 1, but Americans should also be aware that it can no longer take its leadership for granted," says Robert Holleyman, president and CEO of the BSA, a Washington (DC)-based organization that promotes the interests of the software industry. The EIU's analysis also weighed the quality of a nation's technology infrastructure, measuring the number of PCs per 100 people, market spending on IT hardware per 100 people, the availability of secure Internet servers per 100,000 people, and the percentage of the population with high-speed Internet access. Switzerland, ranked 11th overall, outscored the U.S. on IT infrastructure, which accounted for 20% of a country's score. The study also assessed the openness of a country's economy and the quality of government leadership on technology issues.