The Economist Intelligence Unit of the Economist Group -publisher of the Economist magazine - expressed concern that "protectionist instincts are on the rise in many governments' technology sector policies." The concern came upon the researchers after they concluded newly released results of the third annual study of competitiveness in the IT sector.

The organization observed such tendencies in the governments' economic stimulus programs, many of which included measures to increase domestic IT output, according to an EIU statement. EIU is concerned because "buy local" provisions ignore the IT industry's "global nature."

"Globally, the IT sector has ridden out the crisis reasonably well, despite reduced technology spending," EIU Director of Global Technology Research Denis McCauley said in a statement. "Rather than pushing short-term measures designed to expand sector output or support ailing technology firms, policymakers need to remain focused on strengthening the fundamental enablers of long-term sector competitiveness."

EIU observed the impulses across the board but noted that the U.S. (despite its lack of immunity to the protectionist instincts) remained the best place in the world for IT companies, ranking first in the unit's competitiveness index. Other top nations in the index were Canada and western European countries like Sweden, Finland and the Netherlands.

Nations at the top of the index owe their status to their highly developed IT infrastructure and support for research and development in the technology sector. U.S. gained its advantage by providing an "educational environment" that produces "high-quality technology talent."

Growth is stifled in the emerging markets with abundant talent (such as China, India and Russa) by an underdeveloped IT infrastructure.

The study is available for free here.

Related statistics: Outsourcing: profiles and trends
Related market report: Data center investment and infrastructure trends to 2010