JORDAN NATIONAL INFORMATION AND COMMUNICATIONS TECHNOLOGY STRATEGY (2013-2017) % of Total Revenues IT Total Revenue (JD) Growth % IT Foreign Direct Invest. (FDI) Yearly (JD) IT FDI Cumuli. (JD) IT & ITES Emp. 75.00% 545,212,810 32.57% 9,607,316 77.70% 625,143,294 14.66% 2,174,120 76.43% 681,404,047 9.00% 1,196,620 76.59% 633,651,678 -7.01% 11,491,779 72.36% 518,147,882 -18.23% 10,580,500 68.77% 522,543,140 0.85% 980,000 32,988,847 10,712 35,162,967 11,034 36,359,587 10,294 47,851,366 11,334 58,431,866 9,858 59,411,866 11,235 If one analyzes the split between domestic and export revenues, one will realize that Jordan’s competitiveness as indicated by the high level of added value is the primary determinant in its ability to export, whereas declining domestic revenues indicate that the local economy is either unable to absorb or pay for new knowledge integration and/or innovation by ICT companies into their products and services. The addition of new knowledge and/or innovation assists in improving the efficiencies of company/corporate processes (manufacturing, marketing, etc.) or developing new products and services to meet unmet needs or adding additional features to existing products. Adding value to existing products and services and/or creating new products and services based on new knowledge enables higher prices to be charged (improved profitability) or helps in displacing competing products or services from the market (local and export). The inability of the local economy to absorb high value added products and services are related to Jordanian corporate organizational capacity. Over 99.6% of registered companies are considered micro small or medium sized enterprises 7 . The small size of most Jordanian companies hinders the purchase of IT solutions. A recent EU study8 has indicated that a nation’s organizational capability, as indicated by the existence of mature corporate policies and procedures within companies, affects a company’s/nation’s ability to absorb ICT effectively. Jordanian Domestic IT Revenue (High Value Added = 35%)9 High Value Added Low Value Added 7 http://planipolis.iiep.unesco.org/upload/Jordan/Jordan_NHDR_2011.pdf http://ec.europa.eu/information_society/eeurope/i2010/docs/eda/econ_impact_of_ict.pdf 9 ICT & ITES Industry Statistics & Yearbook 2011 (INT@J, Ministry of ICT), Page 24 8 10