The 2006-2007 Global Information Technology Report saw America slide to seventh spot, with the UK clawing back up to ninth following its tenth place last year.
"For the first time, Denmark tops the rankings as a culmination of an upward trend since 2003," said a statement from the WEF.
"Denmark's outstanding levels of networked readiness have to do with the country's excellent regulatory environment, coupled with clear government leadership and vision in using ICT for growth and promoting ICT penetration and usage."
John Chambers, president and chief executive at Cisco, added: "It is no longer debatable as to whether or not the global economy will become networked.
"The vast majority of industries are increasingly adopting networked business processes, and the discussion now focuses on how we get connected to maximise the benefits to business and society."
The study measured the readiness of 122 nations or regions to participate in and benefit from ICT developments.
The three criteria include the environment for ICT; the readiness of key stakeholders such as individuals, businesses and governments in the community; and the use of ICT among those stakeholders.
"Since it was launched in 2001, The Global Information Technology Report has become a valuable and unique benchmarking tool to determine national ICT strengths and weaknesses, and to evaluate progress," said a WEF statement.
"It also highlights the continuing importance of ICT application and development for economic growth."
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