Top 15 Most Advanced Countries in the World

Published on December 3, 2022 at 11:10 pm by Insider Monkey Team in Hedge Funds, Lists, News

In this article, we will take a look at the top 15 most advanced countries in the world.

Advanced countries are generally regarded as countries with modern economies that have leading technology. Although those countries may not invent all the technology they use, they utilize advanced technology more than countries that aren’t as advanced.

Technology utilization has historically been a key driver of economic growth for nations.

The Bank of England explains the role of technology in economic growth. Britain’s central bank notes that until 1750, economic growth averaged only 0.01% per year for 3,000 years. Then in 1750, GDP growth per person took off and averaged 1.5% per year. The Bank of England writes, “So what changed in 1750? Around that time saw the dawn of the Industrial Revolution. Since this point in time, the world economy has expanded for nearly the entire time. But on average, GDP growth per person since 1750 has been 1.5% per year. This means that each generation has been around a third better off than the one before it, on average.”

The British central bank also notes that it took the world an average of 50 years to double economic output after 1750 whereas it took the world 6,000 years to double economic output before 1750. Given the invention of the steam engine, cotton spinning, and railways during the industrial revolution, productivity increased substantially and more people were able to spend time developing new technologies. As a result of continued development, the 20th century saw another massive sea of change in what is now known as the IT revolution with the invention of computers and the internet.

Given the IT revolution, economies are able to grow even faster than before and living standards around the world have increased. The World Economic Forum describes the difference that technology can make in an economy, “For example, a 10% increase in broadband penetration is associated with a 1.4% increase in GDP growth in emerging markets. In China, this number can reach 2.5%. The doubling of mobile data use caused by the increase in 3G connections boosts GDP per capita growth rate by 0.5% globally. The Internet accounts for 3.4% of overall GDP in some economies. Most of this effect is driven by e-commerce – people advertising and selling goods online.”

In the future, there is likely further potential economic growth given the continued development of artificial intelligence which could increase productivity even faster.

Pixabay/Public Domain

Methodology

Because which country is more advanced than another is subjective, we used the rankings of Global Finance’s list for the Most Technologically Advanced Countries In The World 2022 with the only difference being we put the United States in the first spot since it leads the world in technology and it is the home to Silicon Valley which is the tech capital of the world.

For those of you interested, also check out 15 Biggest IT Companies in the World.

Top 15 Most Advanced Countries in the World

15. Austria

Austria ranks #15 on our list of Top 15 Most Advanced Countries in the World given its modern economy and GDP per capita of $53,267.93 in 2021. The country is also a leader in clean energy technologies, water management, and waste management.

14. Belgium

Belgium ranks among the most digital societies in Europe given its leading subscriptions per capita to fast broadband and its integration of digital technology. The country also scores well in terms of internet use and digital public services. In 2021, Belgium had a GDP per capita of $51,767.79.

13. Germany

Germany is a technology and innovation powerhouse given its leading automotive companies like BMW and leading industrial companies like Siemens. Given its strong adoption of technology, Germany has one of the highest average living standards among major economies with GDP per capita of $50,801.79 in 2021. Furthermore, Germany has a big IT sector with 95,808 companies operating in software or hardware in 2019 and an estimated total industry employees of 1.12 million in 2022.

12. Norway

Norway has one of the highest average incomes in the world with a GDP per capita of $89,202.75 in 2021. Although having a substantial oil and gas industry has something to do with the country having a higher GDP per capita than its Scandinavian neighbors, Norway also has a high standard of living due to its digital economy where it does well in terms of broadband connectivity, business digitization, and digital public services.

11. Singapore

Singapore ranks #11 on our list of Top 15 Most Advanced Countries in the World given the city state has a highly digital economy and is home to the regional operations of many leading tech companies such as Google that offer digital services and do businesses in Southeast Asia. Singapore had a GDP per capita of $72,794 in 2021 which is one of the highest in Asia.

10. Israel

Israel has a GDP per capita of $51,430.08 in 2021, ranking it among the wealthiest countries in the world in that aspect. One reason for the high GDP per capita is that the nation has the second highest concentration of high tech companies globally. Israel also has the highest number of startups per capita in the world.

9. Finland

Finland is one of the wealthiest countries in the world with a GDP per capita of $53,982.61 for 2021. The country also ranks highly in terms of the extent of internet use and the technological skills of its citizens. Although it has a relatively small population of 5.5 million, Finland has a vibrant tech scene that has created companies like Nokia and Rovio.

8. Netherlands

The Netherlands has a GDP per capita of $58,061 in 2021 and a leading technological environment anchored by a robust digital infrastructure. The Netherlands ranks #2 in the world in terms of online connectivity with 98% of households having a broadband connection and the country is also home to many tech companies including ASML Holding.

Baron Opportunity Fund describes ASML Holding in a Q2 2022 investor letter,

ASML Holding N.V. designs and manufactures semiconductor production equipment. It specializes in photolithography equipment, where light sources are used to photo-reactively create patterns on wafers that become printed circuits. ASML is the dominant leader across all types of lithography but, most importantly, is the only company selling equipment for extreme ultra-violet (EUV) lithography, the latest generation technology. Indeed, because of the stalling out of Moore’s Law, advanced lithography of larger and multi-patterned silicon chips has been critical for leading-edge chip manufacturing and continued improvement in semiconductor chip performance over time. The company is well positioned to continue growing above industry rates as it rapidly adds capacity across its entire business to meet rising industry demand, especially from leading-edge customers continuing to invest to stay ahead of their competitors and drive chip performance forward. Additionally, the introduction of high-NA EUV technology in the middle of the decade will add another leg to the growth opportunity.

7. Japan

Japan is one of the world’s leading high tech nations given technology and innovation remains the foundation of the country’s competitiveness. Many of the nation’s companies are working on cutting edge innovations such as industrial robots and hydrogen cars. In 2021, Japan had a GDP per capita of $39,285.16, which ranks it among the richest nations in Asia.

6. Taiwan

Taiwan is a leader in semiconductors given companies like Taiwan Semiconductor are based there. Semiconductors are arguably one of the most advanced forms of technology ever built given how difficult it is to manufacture the latest generation of them. Furthermore, semiconductors are used by many other industries to improve their productivity. In part due to its leadership in the technology, Taiwan has GDP per capita of around $33,059 in 2021 and a GDP, PPP per capita of around $71,244.

5. Sweden

Sweden ranks #5 on our list of Top 15 Most Advanced Countries in the World as the country is regarded as ‘the Silicon Valley of Europe’ by many. With the country’s entrepreneurial spirit, the country has the third highest startup rate in the world with 20 startups per 1,000 employees. Furthermore, Stockholm has the second highest startups valued at over $1 billion per capita as of 2020, ranking second only to Silicon Valley. Sweden also has a deep social safety net that helps to foster more risk taking that could help with innovation. In 2021, the country has a GDP per capita of $60,238.9.

4. Switzerland

Switzerland ranks as one of the wealthiest countries in the world with a GDP per capita of $93,457.44 in 2021 in part due to its dedication to innovation. Bettina Rutschi of Credit Suisse explains the country’s innovative culture,

Lacking natural resources, Switzerland has always been forced to innovate. Given the country’s small and highly fragmented internal market, early on Swiss companies also had to look for foreign markets for their goods, and they had to be productive enough to compete internationally. Since the country was largely spared the ravages of the Second World War, it was in an excellent position, with intact, export-oriented production facilities, to benefit from Europe’s post-war reconstruction. Also helpful were Switzerland’s liberal, stability-oriented economic policy and traditional emphasis on hard work, dedication and education.

Along with private industry, the higher education sector plays an important role in Switzerland’s innovative capacity – for example, the Swiss Federal Institute of Technology Zurich (ETHZ) and EPFL in Lausanne. Those two universities are in the top 20 worldwide. The central mandate of Switzerland’s institutes of technology is to promote innovation. Each year, more than 2,000 graduates of master’s degree programs and more than 1,000 PhDs leave ETHZ and EPFL to join the private sector. The two institutes also conduct basic research and partner with the private sector and public agencies to produce successful, market-ready innovations through the transfer of knowledge and technology. They apply for approximately 200 patents every year, and reported 49 spin-offs in 2014 alone.

3. Denmark

Denmark ranks #3 on our list of Top 15 Most Advanced Countries in the World given it has one of the most digitized economies in the European Union along with a tech savvy population and excellent IT infrastructure. The country is also a leader in renewable energy as around 50% of the electricity in the nation is supplied by either wind or solar power. In 2021, Denmark had a GDP of $67,803.05, ranking it among the wealthiest nations in the world.

2. South Korea

South Korea is a leader in technology given its highly educated population and its innovative tech companies like Samsung Electronics. As a result of its dedication to innovation, the country spends more on R&D as a share of GDP than many other developed countries. In 2021, South Korea had a GDP per capita of $34,757.72, which ranks as one of the highest in Asia.

1. United States

The United States ranks #1 on our list of Top 15 Most Advanced Countries in the World given its leadership in technology. Given its history of innovation, the United States has developed the airplane, the internet, semiconductors, and PCs which have revolutionized society and increased productivity substantially. The United States is also home to many of the world’s leading technology companies such as Apple, Microsoft, Alphabet, Meta, Amazon, Tesla, and NVIDIA, many of which developed in Silicon Valley which is regarded as the tech capital of the world. Given that the United States has the largest economy in the world with a GDP of $23 trillion in 2021, many American tech companies have a huge market to grow. Moreover, the nation has many of the world’s leading universities and the world’s leading financial system.

For the future, American companies are working on developing AI and renewable energy which could make the world even more productive and sustainable. In 2021, American GDP per capita ranked among the world’s highest at $69,287.54.

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