Technology and Information Report 2021 global launch

The report focuses on an issue that was already critical prior to COVID-19, but whose importance has been even further highlighted by the crisis: frontier technologies and concerns over inequality, or how we can promote ”innovation with equity”.

With this event, we want to raise awareness of policy options for countries to harness frontier technologies and leave no one behind.

Let me first say a few words on the key underlying issues of this report:

• Frontier technologies: They include various technologies such as artificial intelligence, the internet of things, big data, blockchain, 5G, 3D printing or robotics, to name a few. We know that they are a defining force of today’s and tomorrow’s world.
• The COVID-19 pandemic has demonstrated their power: Artificial intelligence and big data, for instance, have been used for screening patients, tracing virus cases, predicting its evolution and developing vaccines.
• But there is another side to the coin: The risks of rapid technological change. Frontier technologies leave many people behind. In many countries the use of these technologies is constrained by a lack of capacity to absorb new technologies, lack of skills, infrastructure, and financing. How can countries that barely afford basic services, afford these technologies?
• The central point of this edition of the Technology and Innovation Report is that we are at the early stage of a new wave of technological change, and this wave can have implications of historic proportions. Therefore, all countries need to understand what is happening, be prepared to catch this wave of change, and ride it forward.

Some undesirable effects of rapid technological change are already visible. The concern over inequality and the causal relationship with technology is at the forefront.

In many parts of the world, within-country inequality has increased over the past 40 years and this has undermined societal cohesion in several countries. Choices in trade and fiscal policy, education, labour markets, health services have contributed to this trend, but technological change has accelerated it.

In terms of inequality between countries, our Report shows how each wave of technological progress since the Industrial Revolution was associated with sharper inequality. Before 1800 there was very little income disparity across countries. Inequality was mainly a matter of domestic class divides. But today, inequality is driven by where we are born. The average gap in per capita income between developed and developing countries is US$ 40,749, leading to varying degrees of economic, social and political tensions.

Disparities are also seen in education: In 2018, in low-income countries, only 41% of the population in the relevant age group were enrolled in secondary education. In upper-middle-income and high-income countries, it was 90%. This is important because inequality in education perpetuates income and other forms of inequality.

If past technological revolutions have exacerbated inequality among countries, we need to understand how developing countries can get ready to deal with the new wave of technological change.

For this purpose, the report presents a frontier Technology Readiness Index. This index assesses national capabilities to use, adapt and adopt frontier technologies in an equitable manner.

It is no surprise that on the top we have developed countries. The top five are the United States of America, Switzerland, the United Kingdom, Sweden and Singapore.

Large economies from the South are also well ranked: China in 25^th position, Brazil 41, India 43, and South Africa 54.

It is interesting that several countries perform much better than could be expected on the basis of their GDP per capita. The best overperformer is India, which ranks 43, that is 65 positions above its expected ranking. It is followed by the Philippines, which ranks 57 positions higher than expected.

The common factor of overperforming countries is that they have invested heavily in innovation and technological learning through strong research and development. They have also succeeded in diversifying their economy through industrial and innovation policies.

Our analysis also shows that the developing countries as a group, including the top overperforming developing countries, have lower rankings for ICT connectivity and skills. This is concerning given that ICT connectivity and skills are crucial for using and driving frontier technologies.

Only half of the world’s population has ICT connectivity, in the poorest countries internet access is exorbitantly expensive. Developing countries thus need to work towards universal internet access and ensure that their populations have opportunities to learn the skills needed for frontier technologies.

To foster “innovation with equity” we need strong leadership.

At the domestic level, we argue for building stronger national science, technology and innovation - STI - capabilities, address gender gaps in science and technology, adopt redistributive fiscal policies, secure equitable access to education and life-long training, as well as provide a more level playing field for workers.

Policy makers need to be particularly mindful about the labour impact of technology, and that technology policy cannot be separated from other policies, especially industrial policy.

UNCTAD helps developing countries to assess their innovation ecosystems through a multi-stakeholder approach. This exercise supports countries to identify where the gaps are in deploying these new technologies.  

International cooperation and an inclusive dialogue are indispensable to address sensitive aspects of frontier technologies. This includes: i) addressing the lack of consistent ethical frameworks for technologies such as artificial intelligence and gene editing; ii) giving an equal voice to developing countries in governing the impact of technological change on societies and the planet; or iii) devising policies to ease technological transfer.

These contentious issues must be debated, and the UN’s Commission on Science and Technology for Development offers an impartial and trusted platform for doing so.

I want to end my introductory remarks with re-emphasizing that we have a shared responsibility and interest that developing countries do not miss this wave of frontier technologies, otherwise it will further deepen inequalities. Hence, societies and productive sectors need to be well prepared and build the required skills.

Thank you for your attention.