Us, Other G7 Nations, Fall Behind In Global Tech Race, Study Finds

Not 1 G7 federation made it into a apical 10 ranking based connected early tech competitiveness, according to London-based SThree.

The “Group of 7” (G7) nations are falling down successful cardinal tech economical indicators specified arsenic high-tech exports, nan number of package developers, and AI-related patent filings, endangering their early competitiveness, according to new study by London-based workforce consultancy SThree and nan Center for Economics and Business Research (Cebr).

In fact, not 1 G7 federation made it into nan apical 10 — a “clear informing sign” for nan future, nan study warned. (The G7 consists of nan US, UK, Canada, France, Germany, Italy, Japan, and nan European Union arsenic a non-enumerated member.)

“Once nan world epicenter for innovation, these countries are now facing stiff title from emerging tech hubs,” said SThree CEO Timo Lehne. “The situation is nary longer simply astir maintaining their position; it’s astir ensuring they lead nan complaint successful fostering invention and nurturing nan businesses that will thrust nan early of world technology.”

Without focusing connected invention and early industries, tech activity by nan G7 is nary longer guaranteed, Lehne said.

Tech advances are reshaping nan world economy, pinch industries specified arsenic AI, automation, and cleanable power relying connected a STEM-skilled workforce. As a result, countries investing successful science, technology, engineering and mathematics (STEM) acquisition and training will thrust growth; those that don’t whitethorn autumn behind, according to nan report.

The G7 has already seen nan effects of reduced competitiveness this year, pinch nan US’s “Magnificent Seven” (Apple, Microsoft, Amazon, Nvidia, Alphabet, Meta, and Tesla) losing $1.5 trillion successful marketplace value since nan commencement of 2025. The companies saw akin losses successful conscionable a fewer days past twelvemonth arsenic well.

According to SThree, nan US has slipped respective spots and is now down nan UK and Canada successful tech competitiveness, while Singapore, Ireland, and Australia each secured top-10 spots based connected STEM skills and training.

Asian countries occupied nan apical spots successful nan “Foundational Education Pillar,” pinch Singapore connected top, followed by Japan and South Korea. Estonia was nan top-scoring European federation astatine No. 4.

SThree and nan Centre for Economics and Business Research

Singapore’s occurrence tin beryllium attributed to its attraction connected services, R&D, and innovation, according to manufacture observers. The nation’s authorities has an Economic Development Board (EDB), which useful to pull and turn industries, and it has shifted its attraction from low-cost manufacturing to high-value sectors specified arsenic aerospace and semiconductors. It has besides go a hub for integer technologies, pinch galore companies relocating their office from Hong Kong owed to China’s power complete that territory, which it reclaimed successful 1997.

Education and investigation institutes successful Singapore attraction connected processing a skilled workforce successful tech fields for illustration AI, while companies use from funded investigation partnerships. Singapore has besides nurtured a number of tech unicorns including Lazada, Grab, and Ninja Van, promotes fintech done yearly events, and has easy activity visa access.

China was not included successful nan study, arsenic its information was deemed “not reliable” — yet researchers noted that not including China “is arguably nan biggest omission successful this year’s index. From what we know, China’s STEM ecosystem is processing very quickly. It boasts 63 of nan apical 500 investigation institutions, it is progressively seen arsenic a investigation superpower that is competing pinch nan likes of nan United States and Europe, and is investing heavy successful R&D3.”

Switzerland and Sweden sewage apical marks for STEM skills, while Denmark passed Sweden for 2nd spot for Life Sciences, according to nan study. Finland and nan Republic of Korea saw improved scores connected engineering skills, coming successful first and second, respectively.

Although nan UK and US refused to motion past month’s European Union AI agreement regulating nan technology, each ranks 11th and 16th, respectively, for AI patents, pinch Korea, Japan, and Singapore astatine nan top.

“The deficiency of competitiveness successful nan G7 was felt erstwhile US tech giants mislaid $1.13 trillion successful marketplace value, affecting companies for illustration Germany’s Infineon and Japan’s SoftBank,” nan study said, pointing to losses successful 2024. “In wide tech rankings, Singapore, Ireland, and Australia lead successful fostering tech innovation, surpassing each G7 nations.”

The value of investing successful STEM

Singapore has skyrocketed successful tech invention and exports for a myriad of reasons, not nan slightest of which is because STEM skills tin boost captious reasoning and problem-solving crossed immoderate role.

Cebr and SThree utilized 26 indicators successful areas for illustration education, workforce integration, manufacture opportunities, and invention to create their scale ranking 35 countries based connected STEM skills. Success depends connected collaboration betwixt governments, businesses, and acquisition to build a skilled STEM workforce.

A increasing number of organizations are dropping accepted assemblage grade requirements successful favour of skills gained done replacement methods. Large companies, including Boeing, Walmart, and IBM, person signed connected to varying skills-based employment projects, specified arsenic the Rework America Alliance, the Business Roundtable’s Multiple Pathways program, and nan run to Tear nan Paper Ceiling, pledging to instrumentality skills-based practices, according to McKinsey & Co.

“So far, they’ve removed grade requirements from definite occupation postings and person worked pinch different organizations to thief workers advancement from lower- to higher-wage jobs,” McKinsey said in a November report.