1. Our core Tau Index (TI) is a multi-variable integration of several technology and socio-economic factors to create a relative look at how well the 102 nations we examine are building their national ICT infrastructures given the resources they have.
This is not an absolute ranking, ie, the best-developed countries are not necessarily at the top, the least-developed not necessarily at the bottom. The main adjustment we make is for local purchasing power--known as purchasing power parity or PPP by economists.
Technology costs roughly the same throughout the world, so a country with a relatively low cost of living is making a more aggressive use of technology than a country with similar infrastructure but a higher cost of living.
TI Top 10: South Korea - Estonia - New Zealand - Netherlands - Finland
Denmark - Sweden - Vietnam - UK - Lithuania
2. Our Tau Potential Index (TPi) discounts the socio-economic factors in favor of the technology factors. Whereas income disparity and corruption, for example, have a significant effect on our core rankings, they are dampened in our raw index. This teases out countries that are making significant technological progress in the face of large socio-economic impediments.
TPI Top 10: Vietnam - Uganda - Kenya - Tanzania - Ukraine
Ethiopia - Nigeria - Bulgaria - Romania - Morocco
3. Our Goldilocks Countries are those within the TPI that are being developed at just the right pace--they are neither too hot nor too cold. The essence of our approach is to measure dynamism, or socio-technical "torque," and technology can be a great societal disruptor. Thus countries running too hot may be in for some rough times; those running too cold may either continue to be undeveloped, or simply be in the doldrums.
Goldilocks 12: Poland - Slovakia - Czech Republic - Croatia - Latvia - Slovenia - Portugal
Jordan - Ecuador - Jamaica - Malaysia - Sri Lanka
4. Our ID Rankings takes third mathematical derivatives of our Tau Index to measure Instantaneous Dynamism, ie, how quickly are they being developed at this very present moment.
The ID 20: Vietnam - South Korea - Mongolia - China - Philippines
Kenya - Uganda - Tanzania - Nigeria - Senegal - Morocco - Ethiopia - Egypt
Ukraine - Bulgaria - Romania - Serbia - Lithuania - Hungary - Estonia
5. The Overall Challenge Matrix (OCM) is the only one of our measures that takes population into account. Our others don't because we want people to get a fair-minded look at real-world conditions within each of the countries, and neither overrate nor underrate them because of a very large, very small, or very mid-sized population. The Overall Challenge Matrix, on the other hand, measures the entire scope of the challenge that must be addressed to improve a nation's ICT infrastructure.
OCM Top Challenges: Ethiopia - Bangladesh - Cameroon - Cote D'Ivoire - Tanzania
6. The Relative Challenge Matrix (RCM) is a function of the basic Challenge Index--we adjust the rankings to reflect the per-person challenge of the 102 nations. The RCM is still being calculated and will be available by November 2014.