The country climbed from 15th place to 11th, primarily due to increasing internet bandwidth and greater penetration of mobile broadband.
It came 2nd in the world for the strength of its macroeconomic environment, a performance the report put down to a combination of windfall oil revenues and prudent fiscal management.
The report also commended Norwegian business on its take up of new technologies, ranking it 3rd worldwide in "technological readiness", a leap of 10 places since 2012.
Of Norway's neighbours, Finland came third in the rankings and Sweden at 6th place, while Denmark dropped three notches to 15th place.
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The world's most competitive country is Switzerland, according to the report, while the African country of Chad has ended up in last place.