How is the Networked Readiness Index (NRI) calculated?

The Networked Readiness Index (NRI) is calculated by the World Economic Forum (WEF) as a measure of a country's ability to leverage information and communication technologies (ICTs) for economic development. The NRI is based on a combination of quantitative data and qualitative assessments gathered through surveys.

The calculation of the NRI involves three main steps:

1. Data Collection: The WEF collects data from various sources, including international organizations, national statistical agencies, and private sector surveys. The data collected covers a wide range of indicators related to ICT infrastructure, ICT usage, ICT skills, and the overall enabling environment for ICT adoption.

2. Indicator Selection and Weighting: The collected data is then used to construct a set of indicators that capture different aspects of a country's networked readiness. These indicators are carefully selected and weighted based on their relevance and importance in determining a country's ability to benefit from ICTs. The WEF uses a combination of statistical techniques and expert judgment to determine the appropriate weights for each indicator.

3. Index Calculation: Once the indicators and their weights are determined, the NRI is calculated by aggregating the scores of each indicator. The scores are typically normalized to a scale of 1 to 7, with 7 representing the highest level of networked readiness. The final NRI score represents a country's overall performance in leveraging ICTs for economic development.

It is important to note that the NRI is a dynamic index that is updated periodically to reflect changes in ICT development and adoption. The WEF continuously reviews and refines the methodology to ensure its relevance and accuracy in capturing the evolving nature of the digital economy.