"Communication technologies," "Immigration laws," and "Data protection regulations" are some of the country's key strengths.
Portugal has risen one place in the IMD World Digital Competitiveness Ranking, now occupying the 35th position among the 67 global economies evaluated. This marks a positive trend for the country, which has improved for the second consecutive year, following the general competitiveness index, where Portugal climbed to 36th place. It is worth noting that, at the national level, the academic institution has an exclusive partnership with Porto Business School for the creation of the ranking.
The study reveals that the country has improved in two of the three categories evaluated. In "Knowledge," Portugal rose two places to 29th, improving in the subcategory "Talent" (28th) and maintaining its ranking in "Training and Education" (34th) and "Scientific Concentration" (26th). In "Technology," Portugal advanced four places to 36th, thanks to improvements in "Regulatory Framework" (26th) and "Technological Framework" (42nd). Despite a slight drop in the "Future Readiness" indicator, the subcategory "Attitudes towards Adaptation" rose two places to 24th.
The national ranking of the IMD World Digital Competitiveness Ranking is based on specific criteria in each category and subcategory. In "Knowledge," the "Student-to-Professor Ratio (higher education)" stands out as Portugal's main strength at 12th place. On the other hand, "International Experience" and "Workforce Training" are identified as the main weaknesses in this area, ranked 60th and 61st, respectively.
In "Technology," "Communication Technologies" (3rd) and "Immigration Laws" (4th) top the table, while "Wireless Broadband" (55th) and "Venture Capital" (57th) are identified as key weaknesses. Finally, in the "Future Readiness" indicator, there is a positive highlight for "Data Protection Regulations" (5th) and "Flexibility and Adaptability" (8th). However, the low "Use of Big Data and Analytics" (61st) pulls Portugal to the bottom of the table, marking it as the main weakness in this parameter.
According to José Esteves, Dean of Porto Business School, "Portugal's rise in this ranking for the second consecutive year reflects the country’s transformative potential in the digital landscape and the quality of our talents. These results demonstrate the commitment of the Portuguese academic and business sectors to embrace innovation and adaptability, essential for a competitive economy prepared for the future. Porto Business School is proud to collaborate with IMD in analyzing this data, which reinforces our commitment to fostering innovation and education in crucial areas such as leadership, digital transformation, artificial intelligence, and cybersecurity."
Singapore Leads the Digital Competitiveness Ranking
This year, Singapore tops the IMD World Digital Competitiveness Ranking, followed by Switzerland in second place, with Denmark completing the podium. The US, leaders in 2023, dropped three positions, landing in fourth.
After placing third last year, Singapore moved to the top of the table, positioning itself as the most digitally competitive economy. This achievement is mainly due to high performance in city management, the number of high-tech patent grants, banking and financial services, and public-private partnerships.
Switzerland significantly improved in high-tech exports (9th), electronic participation (up 11 places to 27th), and cybersecurity (11th). Denmark's strengths include the quality and prioritization of worker training, the country’s excellent credit rating, business agility, openness to globalization, efficient e-government, and trust in secure Internet servers (Denmark ranks first in all these indicators).
In the US, a downward trend is observed in the country's attitude toward globalization (58th, down eight places), a growing fear of failure among entrepreneurs (28th), and a notable decline in the availability of international management experience (28th). However, the country remains strong in high-tech patent grants (4th) and AI policy regulation (1st).
Geopolitical Rivalries and Infrastructure are Challenges for 2025
José Caballero, Senior Economist at the IMD World Competitiveness Center, notes, "Geopolitical rivalries, particularly the technological competition between the US and China, are fragmenting the digital landscape, affecting not only how other countries develop and use digital technologies but also their ability to compete globally."
Another significant challenge for digital competitiveness by 2025 is the large disparity in digital infrastructure development. Many economies, especially in developing regions, lack access to high-speed broadband and modern electricity and telecommunications networks, limiting their participation in the global digital economy.
Moreover, the report highlighted how countries must deal with the pace of technological change and capacity requirements. While emerging technologies such as artificial intelligence (AI), blockchain, and quantum computing drive innovation and reshape industries, economies, and societies, they may also widen the digital gap. Countries effectively harnessing these technologies will be positioned to increase their digital competitive advantage, leading to sustained economic growth, higher productivity, and greater global influence. Key indicators reflecting this include high-tech patent grants, intellectual property rights, and e-governance.
The IMD World Digital Competitiveness Ranking has evolved to better reflect changing conditions in digital governance, business, and society. This year, new or improved indicators include: a computer science education index, a measure of scientific articles on AI, a count of AI policies legislated, a count of secure Internet servers, and an assessment of flexibility and adaptability (when faced with new challenges).
The methodology of this report divides digital competitiveness into three factors: "Knowledge," "Technology," and "Future Readiness." Each is further divided into three sub-factors that highlight all aspects of the areas analyzed. In total, the ranking features nine such sub-factors, which include a total of 59 criteria.
