The UK ranks third in the world for IT competitiveness, according to an Economist Intelligence Unit study released today.

The report assesses and compares the IT industry environments of 66 countries to determine the extent to which they enable competitiveness in the IT sector.

A number of factors were evaluated. The UK scored highly on the protection of private property, commitment to a deregulated market and receptiveness to foreign trade.

Areas for improvement include investment in research and development, and IT-related patents.

"Policymakers and business leaders need to address the full combination of factors that enable competitive IT industries," said Denis McCauley, director of global technology research at the Economist Intelligence Unit.

"Few countries can hope to build strong IT production sectors without strong business and legal environments, deep pools of talent, support for innovation, and the widespread use of technology throughout society."

High performing IT sectors directly contribute more than five per cent to the gross domestic product of most advanced nations, and drive momentum in the wider economy by helping organisations and workers to be more efficient and productive, according to the study.

The research also found that competitive broadband markets help cultivate strong IT sectors, and warned that a robust approach to cyber-crime and protecting intellectual property is vital.

The US and Taiwan came ahead of the UK in the ranking.