The Northern Territory is not ready to attract multinationals to do business here, according to a new national report which ranks the NT last in the country for digital readiness, suggesting it might be the worst place in the country to establish a digital hub.

The Digital Readiness Index conducted by Cisco Australia and New Zealand appears to refute the NT Government’s claims under its digital strategy plan that the jurisdiction is now digital-ready to attract investors.

Cisco’s Digital Readiness Index shows that the NT continues to lag behind other states and territories, ranking in 8th place.

The Digital Readiness Index measured each state and territory’s ability to capture the “opportunities of digital capabilities and investments” against a number of criteria, including basic needs, human capital, business and government investment, ease of doing business, start-up environment, technology adoption and technology infrastructure.

The Territory lost major marks for poor business research and development investment and dropped in rankings for its human capital, due in part to a fall in labour force participation.

The Index also ranked the Territory last across other digital readiness categories, including most prominently in the basic needs category. The Territory was a deviation compared to other states and territories owing to inferior results in the metrics of infant mortality, homicides, homelessness and life expectancy.

The reports findings come as the Fyles Government continues to herald digital and tech industries as a key platform of its goal to grow the NT economy to $40 billion by 2030.

However, the man in charge of the Territory’s digital and tech industry, Andy Cowan, resigned suddenly on Monday as Territory Investment Commissioner, with the position appearing to remain vacant.

The Cisco report’s author said “investment and focus” would be key for the NT to improve its position.

“The report highlights the need for an urgent investment and injection of technology and digital infrastructure in the Northern Territory, as well as increased labour force participation,” Cisco Australia and New Zealand vice president Ben Dawson said.

“The growing national divide between the Northern Territory and the other states and territories requires investment and focus for Australia to truly claim its place as a digitally ready nation.”

In a positive sign, the Territory ranked third among the states and territories for business & government investment due to recording the highest individual expenditure on education per full-time student.

The ACT retained the lead position as Australia’s most digitally ready jurisdiction after it ranked first in Business and Government Investment and Human Capital.

“As digitization continues to accelerate, the report highlights the continued need for each state and territory to focus and invest across all the digital readiness components to capture the opportunities of a resilient, sustainable, and equitable society,” Mr Dawson said.