Latvia has broken into the Top 50 of countries in terms of how it is leveraging information and communication technology to become more economically competitive, according to a new report from the World Economic Forum.

However, the nation’s ranking lags behind that of its Baltic neighbors, despite making an impressive gain from last year.

The forum’s report and its latest Networked Readiness Index were released March 29 in Geneva. Denmark moved to the No. 1 spot, while the United States—which last year led the rankings—slipped to No. 7.

Latvia came in 42nd, up nine spots from its ranking in the 2005-2006 edition of The Global Information Technology Report. The report this year ranked 122 countries.

Lithuania ranked 39th, an improvement of five spots from its former ranking of 44th.

Estonia, meanwhile, improved three spots to land at No. 20 and was showcased by the World Economic Forum “for the impressive progress realized in the space of a decade in networked readiness as well as general competitiveness, driven by an efficient government ICT vision and strategy.”

In addition to remarking on Denmark’s success in rising to the top of the ranking, the report also lauded the Scandinavian nations of Norway, Sweden and Finland.

“The recipe of Nordic countries for networked and competitive success has to do with a very strong focus on education, which has enabled the establishment and development of highly efficient educational institutions and a culture of innovation; transparent and well-functioning public institutions which have resulted in a business-friendly environment; and a strong readiness by key national stakeholders to adopt the latest technologies,” the forum said in a press release.

The rankings were prepared in cooperation with the Paris-based INSEAD business school.