The UK is in ninth place in a survey of how well different countries use IT, two places behind the US, according to the World Economic Forum.
The 122 countries polled were measured on their business, regulatory and infrastructure environments for IT, the readiness of business, government and people to use technology and the actual use of current technologies.
Denmark leads the "Networked Readiness Index" survey, taking the top spot for the first time as the country that uses IT to maximise development and increase competitiveness.
The US fell to seventh in the rankings, after coming first in last year's study. Denmark came in third last year after starting to rise in the list in 2003.
The Danish government scored highly for its use of electronic services, regulatory structures and telecommunications. But the study attributed the US slide to the "deterioration” relative to the political and regulatory environment.
Other Scandinavian countries also fared well in the study. Sweden came in second place and Finland took fourth, advancing from the eighth and fifth spots in the 2006 results. The 10th spot went to Norway, up from 13th place, while Iceland fell to eighth place from fourth.
Several factors contributed to the Nordic nations' strong presence in the annual survey, including an emphasis on education, efficient government and a willingness to use current technologies.
Switzerland (fifth place) and the Netherlands (sixth) were the other European countries to make the top 10.
Singapore came third in this year's survey, one place down from its 2006 position. The Asia-Pacific region ranked high in the survey with Hong Kong (12), Taiwan (13), Japan (14), Australia (15) and Korea (19) making the top 20. China and India, hot spots in the global economy, were placed lower in this year's survey.
China fell nine spots to 59 while India slipped to 44 from 40. The survey claimed that both countries have weak infrastructure that prevents them from maximising IT, with China having low business and individual IT preparedness and use and India having low personal IT use.