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Huawei reports digital tech investments yield $8.3 per dollar spent but may widen economic gaps, as the Chinese firm unveiled strategies to broaden digital access at a Dubai tech show.
October 24, 2024
Every dollar invested in digital technology can bring $8.3 back to a country's economy, but economic gaps may widen without policy intervention, according to Huawei.
The tech giant highlighted these findings from its new Global Digitalization Index (GDI) at GITEX Dubai last week, where it also unveiled plans to broaden digital access.
The report predicts digital technology and AI will drive 70% of global economic growth over the next five years. However, Huawei warns that while some countries are pouring resources into their digital future, others increasingly lag behind.
"We are moving ever faster towards the intelligent world," said David Wang, Huawei's executive director. "But the extent to which each country benefits from its ICT industry depends on how advanced that industry is."
From 2019 to 2023, highly digitalized nations increased their tech investments 18 times faster than less developed countries, the report found.
The GDI measures ICT development across 77 countries that make up 93% of global GDP and 80% of the world's population. The report divides these countries into three categories: "Frontrunners," "Adopters," and "Starters," based on their level of ICT maturity and economic development.
In Frontrunner countries, a one-point increase in the GDI score can boost economic output by $945 per person, five times higher than in Starter countries.
The report emphasizes a growing talent gap in the tech sector. Even when countries produce similar numbers of STEM graduates, their ability to retain this talent varies dramatically.
In top-performing countries, 95% of STEM graduates work in tech-related jobs. However, in lower performing countries only 15% find tech sector employment.
Emerging economies are losing tech talent to advanced nations, which offer higher salaries and better career opportunities. The study cites a lack of high-quality tech jobs in developing countries as a key factor in this "brain drain."
To close the divide, Huawei suggests developing nations focus on building better internet connections and digital systems. The study notes that investments in digital technology yield 6.7 times higher returns than traditional physical assets like roads or bridges.
Singapore is cited as a prime example. Since the 1990s, Singapore has steadily improved its digital technology, starting with basic internet connections and now aiming to become a fully digital country by 2025. This careful, step-by-step approach has helped Singapore become one of the world's top tech economies.
The report also recommends prioritizing green energy in tech strategies, stating that combining digital technologies with renewables could reduce global carbon emissions by 20% by 2030.
Huawei is working to bridge the digital divide by making ICT infrastructure more accessible and user-friendly for countries at all stages of development. The company is focusing on simplifying the adoption and use of digital technologies, particularly for nations and businesses with fewer resources.
To this end, Huawei released more than 30 products in its eKit line at GITEX, designed to simplify digital transformation for smaller businesses, such as those in lower-income countries.
The tech giant is also collaborating with partners to create industry-specific solutions, including a national government cloud solution and an ICT talent cultivation program.
"Huawei is ready and willing to join forces with more customers and partners to enable industrial digital and intelligent transformation and bring more benefits to the lives and work of people around the world," Li Peng, Huawei's corporate senior vice president, said during a speech in Dubai last week. "We're working with partners to build new digital and intelligent infrastructure."
Huawei hopes that the GDI, developed in partnership with the International Data Corporation, will help policymakers and business leaders evaluate their digital transformation progress. This tool aligns with the company's goal of making digital technology more accessible and practical for businesses of all sizes.
The company released a white paper at GITEX, showcasing over 100 success stories in industrial digitalization. At the event, Huawei's large booth displayed its latest innovations, including technologies for faster internet, cloud computing, and AI for various industries.
Huawei also presented its "Intelligent World 2030" report in September, forecasting technological advancements by decade's end. It predicts that 10% of vehicles will be fully autonomous, 20% of homes will have robots, and industrial robots will outnumber production workers..
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