HomeRecoletos Multidisciplinary Research Journalvol. 2 no. 2 (2014)

On Technological Readiness of ASEAN Countries for Global Competitiveness

Ricky B. Villeta | Roramie V. Arco | Gallardo E. Gulay | Percia A. Leyte

Discipline: Business Economics



This study utilized exploratory data analysis or data mining using multivariate factor, cluster and principal components analyses in order to determine the technological readiness of the ASEAN member countries based on the World Economic Forum 2013 -2014 edition. Factor analysis was able to identify three factors namely, technology competence, access to technology and technology users which were used as bases for clustering the ASEAN member Countries. The means of each cluster for each factor were further utilized to assess the extent of technological readiness of the ASEAN member states through a model obtained using the principal components analysis. With this model, Singapore, the only nation that belongs to Cluster 3, emerged as the most technologically ready among the ASEAN countries. Group 2 ASEAN nations comprising Thailand and the Philippines, are the next two countries with a very high technological readiness, respectively as compared to Cluster 1 ASEAN member states. On the other hand, ASEAN member states belonging to Cluster 1 are found to be relatively least technologically ready, except for Malaysia, Indonesia, and Vietnam that ranked fourth, fifth and sixth, respectively with a slightly competitive technological readiness. It was found out that technological readiness of an ASEAN country varies directly with the country’s technological competence, access to technology, and level of technology utilization. More specifically, technological readiness is mainly determined by access to technology which is related to both culture and economy. Meanwhile, global competitiveness highly correlates with technological readiness. Thus, while economic productivity mainly drives global competitiveness, both culture and economic productivity determines technological readiness. The high correlation between technological readiness and global competitiveness is also limited with culture as much as it is driven by economic productivity.