Dublin lies just one off the bottom of the list as an e-commerce hub when compared to 13 global cities of similar size, according to a stinging new report from Dublin Chamber of Commerce. Only Prague ranks lower among cities vying for a leading e-commerce role, in an update to last year's E-City report produced by the chamber. Last year, Dublin earned a mid-table ranking, but this year, the Republic and Dublin have not kept pace with competitors, the report states.

The report, produced by the 19-member e-city working group chaired by Iona chairman Dr Chris Horn, identifies the lack of a comprehensive policy and vision on infrastructure as the single most pressing problem. The report criticised the approach to developing the State's internet networks and other "e-capabilities" as piecemeal. Industry and users have not been adequately involved in the process, either, it says.

Though the report identifies "modest" progress - the appointment of an e-minister, Ms Mary Hanafin; the release of the Government's "New Connections Government Action Plan"; and work on developing a metropolitan fibre-optic telecoms network - Dublin and the Republic are falling behind in competitive advantage in e-commerce.