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US, other G7 nations, fall behind in global tech race, study finds
Thursday March 27, 2025. 07:06 PM , from ComputerWorld
![]() In fact, not one G7 nation made it into the top 10 — a “clear warning sign” for the future, the study warned. (The G7 consists of the US, UK, Canada, France, Germany, Italy, Japan, and the European Union as a non-enumerated member.) “Once the global epicenter for innovation, these countries are now facing stiff competition from emerging tech hubs,” said SThree CEO Timo Lehne. “The challenge is no longer simply about maintaining their position; it’s about ensuring they lead the charge in fostering innovation and nurturing the businesses that will drive the future of global technology.” Without focusing on innovation and future industries, tech leadership by the G7 is no longer guaranteed, Lehne said. Tech advances are reshaping the global economy, with industries such as AI, automation, and clean energy relying on a STEM-skilled workforce. As a result, countries investing in science, technology, engineering and math (STEM) education and training will drive growth; those that don’t may fall behind, according to the report. The G7 has already seen the effects of reduced competitiveness this year, with the US’s “Magnificent Seven” (Apple, Microsoft, Amazon, Nvidia, Alphabet, Meta, and Tesla) losing $1.5 trillion in market value since the start of 2025. The companies saw similar losses in just a few days last year as well. According to SThree, the US has slipped several spots and is now behind the UK and Canada in tech competitiveness, while Singapore, Ireland, and Australia all secured top-10 spots based on STEM skills and training. Asian countries occupied the top spots in the “Foundational Education Pillar,” with Singapore on top, followed by Japan and South Korea. Estonia was the top-scoring European nation at No. 4. SThree and the Centre for Economics and Business Research Singapore’s success can be attributed to its focus on services, R&D, and innovation, according to industry observers. The nation’s government has an Economic Development Board (EDB), which works to attract and grow industries, and it has shifted its focus from low-cost manufacturing to high-value sectors such as aerospace and semiconductors. It has also become a hub for digital technologies, with many companies relocating their headquarters from Hong Kong due to China’s influence over that territory, which it reclaimed in 1997. Education and research institutes in Singapore focus on developing a skilled workforce in tech fields like AI, while companies benefit from funded research partnerships. Singapore has also nurtured a number of tech unicorns including Lazada, Grab, and Ninja Van, promotes fintech through annual events, and has easy work visa access. The study didn’t include some large economies such as China, India or any African nation because of “a lack of data availability within those countries.” Yet, researchers noted that not including China “is arguably the biggest omission in this year’s index. From what we know, China’s STEM ecosystem is developing very quickly. It boasts 63 of the top 500 research institutions, it is increasingly seen as a research superpower that is competing with the likes of the United States and Europe, and is investing heavily in R&D3.” Switzerland and Sweden got top marks for STEM skills, while Denmark passed Sweden for second place for Life Sciences, according to the study. Finland and the Republic of Korea saw improved scores on engineering skills, coming in first and second, respectively. Although the UK and US refused to sign last month’s European Union AI agreement regulating the technology, each ranks 11th and 16th, respectively, for AI patents, with Korea, Japan, and Singapore at the top. “The lack of competitiveness in the G7 was felt when US tech giants lost $1.13 trillion in market value, affecting companies like Germany’s Infineon and Japan’s SoftBank,” the study said, pointing to losses in 2024. “In overall tech rankings, Singapore, Ireland, and Australia lead in fostering tech innovation, surpassing all G7 nations.” The importance of investing in STEM Singapore has skyrocketed in tech innovation and exports for a myriad of reasons, not the least of which is because STEM skills can boost critical thinking and problem-solving across any role. Cebr and SThree used 26 indicators in areas like education, workforce integration, industry opportunities, and innovation to develop their index ranking 35 countries based on STEM skills. Success depends on collaboration between governments, businesses, and education to build a skilled STEM workforce. A growing number of organizations are dropping traditional college degree requirements in favor of skills gained through alternative methods. Large companies, including Boeing, Walmart, and IBM, have signed on to varying skills-based employment projects, such as the Rework America Alliance, the Business Roundtable’s Multiple Pathways program, and the campaign to Tear the Paper Ceiling, pledging to implement skills-based practices, according to McKinsey & Co. “So far, they’ve removed degree requirements from certain job postings and have worked with other organizations to help workers progress from lower- to higher-wage jobs,” McKinsey said in a November report. Skills-based hiring helps companies find and attract a broader pool of candidates better suited to fill positions long term, and it opens up opportunities to non-traditional candidates, including women and minorities, according to McKinsey.
https://www.computerworld.com/article/3855460/us-other-g7-nations-fall-behind-in-global-tech-race-st...
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