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18:51 17th September 2009
In a global league table ranking countries on their IT industry's level of competitiveness, the UK has fallen from third to sixth place.
However, the annual study by the Economist Intelligence Unit (EIU) did find that the British computing sector is still far ahead of many other European nations including France in 17th and Germany in 19th place.
In first place is the US, which retains its top spot, followed by Finland, Sweden, Canada and the Netherlands.
Denis McCauley, EIU director of global technology research, said: "Rather than pushing short-term measures designed to expand sector output or support ailing technology firms, policymakers need to remain focused on strengthening the fundamental enablers of long-term sector competitiveness."
The study noted that those countries with well developed broadband networks have a distinct advantage against those with older systems.
An earlier report by the EIU had found that partnering between IT and the business sector is critical for success as the economy improves.
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