How technology shapes economic opportunity in the Opportunity Index

Though economies are complex and made up of a multitude of factors, in the 21st century one factor has driven economic dynamism: technology.??

As spotlighted in the CS Global Partners Opportunity Index 2024, economies which prioritise technological innovation tend to surge to prominence.??

Technological innovation assists countries in attracting foreign direct investment, sustainable growth and developing a highly skilled workforce.??

Rather than rewarding sheer geographical or population size, the Opportunity Index’s unique methodology rewards countries for incentivising growth, change and innovation: with technology serving a key role in this process.??

Ireland: An Emerald Isle of Opportunity

The Opportunity Index’s top ranked country in 2024 is the Republic of Ireland.??

Smaller countries such as Ireland top the Opportunity Index rankings for their business-friendly environments and robust infrastructure. The Opportunity Index evaluates economic performance using key indicators like GDP, economic growth, labour market conditions, and inflation.?

Ireland’s economic strategy is tied up with technology, which has catapulted the small isle to global prominence as one of Europe’s wealthiest and fastest growing economies.?

After revamping their tax policies to be business-friendly, Apple, Google, Meta and other multinational corporations chose Ireland for their European headquarters. This has established Ireland as a key technological hub, with the accompanying pro-business investment policies, reliable digital infrastructure, and a highly skilled workforce.?

Like other leading countries in our rankings, such as the United Arab Emirates, Ireland also possesses a leading city that attracts the world’s best talent, from people to businesses to investment. Dublin, Ireland’s capital, accounts for 40% of Ireland’s output.?

Ireland has leveraged the growth potential of the capital city to spread wealth to the rest of the country, though there are still problems around geographical inequality and income inequality.??

Despite these challenges, the country’s technological and economic innovation has assisted its political development, too; after joining the European Union and gaining the accompanying trade advantages, Ireland’s society became more progressive, open and democratic.

The United Arab Emirates and the Role of Emerging Technologies

Emerging technologies, according to our report’s findings, are transformative in shaping and reshaping the economic potential of countries.??

In 2024, chief among these emerging technologies is artificial intelligence. Artificial intelligence can transform the way that individuals work, learn, and develop. AI also affects the choices made by businesses and consumers, including the services that are provided by humans versus machines.?

Emerging technologies are also speeding up manufacturing capacities, changing which countries consume products versus which countries produce products. These changes have a knock-on effect on wages and the distribution of income in the economy.??

Another emerging technology with a strong economic effect is renewable energy. The new technologies required for renewable energies also help contribute to developing new, environmentally focussed sectors of the economy.?

Caribbean countries such as Dominica and St. Kitts and Nevis received recognition in the Opportunity Index and World Citizenship Report for integrating environmentally friendly economic policies into their economic strategies, including their Citizenship by Investment (CBI) programmes. Both countries have utilised CBI to invest in renewable energy technologies.?

The United Arab Emirates, ranked second in the Opportunity Index, received its strong ranking chiefly for its cutting-edge technological capacity, efficient infrastructure and digital capacity.??

The country’s technological development has helped the UAE diversify the economy beyond oil and gas.??

Like Ireland, the UAE features a technologically-savvy, growth-oriented city (Dubai, along with the country’s capital Abu Dhabi) that rakes in investment, talented immigrants and consistent growth.??

Both Dubai and Abu Dhabi are known as ‘Smart Cities’ for their blockchain and AI initiatives, which help the city build economic resilience while fostering long-term innovation.?

How Technology Fights Inequality

By empowering individuals with new tools to learn, develop and grow, technology can fight inequality and help economies and individuals reach their potential. According to the Opportunity Index, the growth potential of technology can especially benefit poor, low-skilled countries by widening access to healthcare, education and financial services.?

However, technology can also exacerbate income inequality, by making tech entrepreneurs wealthier than the people who consume their products.? Nonetheless, technology’s capacity to give the training, education, workplace skills and enhanced efficiency to everyday workers cannot be overlooked.?

The lowest ranked countries in the Opportunity Index had unequal and limited access to technology, which inhibited development. Haiti and Lesotho were the most striking examples of this phenomenon.??

Both countries feature underdeveloped digital infrastructure and low investment in technological innovations, along with monopolistic economic structures where a few people possess key resources.?

In order for developing countries to reach their economic potential, countries should improve their digital infrastructure while also protecting equal access to key resources, especially ones that could assist in expanding access to emerging technologies.?

Conclusion

The 2024 Opportunity Index indicates that technology is the key factor in not only economic growth, but economic potential; in other words, opportunity is tied up with technology.??

The top ranked countries, the Republic of Ireland and the United Arab Emirates, feature durable, sustainable economic infrastructure, standout cities that have become tech hubs, business-friendly policies and highly skilled workforces.??

The lowest ranked countries have poor digital infrastructure, monopolistic resource distribution and poorly skilled workforces. To flourish, countries should embrace technological innovation and the economic opportunities it brings citizens, businesses and sectors.??

Download the CS Global Partners Opportunity Index today for more insights on economic growth, technological innovation, and global change.?