Mexico has jumped three places to be ranked 49th on IMD’s Digital Competitiveness Index for 2017.

The report, prepared by the Switzerland-based IMD World Competitiveness Center, recognizes the country’s ability to adopt and explore digital technologies leading to transformation in government practices, business models and society in general.

The results are based on 261 indicators, with about two-thirds coming from so-called “hard data,” such as employment and trade statistics. The balance came from more than 6,250 executive-opinion surveys conducted this year.

Considering the report, Mexico still needs to work towards improving its economic performance, infrastructure and governance.

Enhancing enrollment in secondary schools and lessening its dependency on the U.S. market might improve its ranking in the years to come, say analysts.

IMD annually releases the index measuring the economic competence of countries, but for the first time this year, it has created a separate report ranking countries’ digital competitiveness.

At the top of the ranking is Singapore, followed by Sweden, the US, Finland, and Denmark. The report urges governments to help private enterprises spur technological innovation, saying that Singapore and Sweden have adopted regulations that facilitate the inflow of overseas talent, which complements the locally available pool.

“Of paramount importance in the digital ranking are issues related to how adaptive and agile economies are when faced with technological change,” said Prof. Arturo Bris, Director of the research firm.

The authors of the report claim they took into account several factors, including the availability of talent and the level and quality of education and training.

“There is a relation between the lack of talent and training with a lack of business agility,” he added. “Education and knowledge production are the key.”