Digital Economy And Society Index Research Articles

Unveiling Digital Transformation: A Catalyst for Enhancing Food Security and Achieving Sustainable Development Goals at the European Union Level.

The digital revolution is reshaping various aspects of society, including having a profound impact on food security and the advancement of Sustainable Development Goals (SDGs). This study investigates the relationship between digital transformation, quantified through the components of the Digital Economy and Society Index (DESI), and SDGs related to food (SDG1, SDG2, SDG3, and SDG10), along with the overall SDG Index score. The data used for investigation are sourced from reports issued by the European Commission concerning DESI, as well as the SDG reports for the period from 2017 to 2022. The paper elucidates how different components of digitalization, such as connectivity, digital skills, internet usage, and digital public services, influence the attainment of food security objectives and broader sustainable development targets using structural equation modeling and cluster analysis. The findings underscore the pivotal role of digital technologies in enhancing poverty alleviation, health and well-being, and, in particular, mitigating inequality. This study contributes to understanding the complex relationship between digital transformation and food security, offering insights for policymakers, practitioners, and stakeholders aiming to leverage technology for advancing SDGs and fostering a more equitable and sustainable future.

Big Data as a reform opportunity for public sector and real economy: The case of Greece

Background The recent economic recession has hit Greece with economic, political, and social repercussions. Structural reforms in the real economy and public sector are considered to be of paramount importance for introducing a new consumption and production paradigm to achieve sustainable economic growth. Methods The present paper aims to highlight Big Data and the Internet of Things as part of the 4th Industrial Revolution as a potential enabler for the necessary leap in the 21st century for the Greek public sector on the theoretical basis of the Unified Growth Theory and the Washington Doctrine. In the present paper, an evaluation of the Greek public sector is attempted by using two different indices, the Digital Maturity Index of the Hellenic Federation of Enterprises (SEV), and the Digital Economy and Society Index (DESI) of the EU. Results Findings strongly indicate that the introduction of digital skills in the educational system along with vocational training of older groups regarding the use of digital public services is an important factor for digital services implementation in the case of Greece. Moreover, the findings also underlie that demand for digital public services is not merely a matter of economic power. Other causes that lie in cultural, geographical, and behavioural habits should also be considered. Conclusions Greece is not in the pole position regarding Big Data implementation. High-speed broadband, both fast and ultrafast, lacks widespread availability, while prices remain relatively high compared to other European countries. Internet user skills and advanced IT skills remain mostly misused in the private and the public sector, while business digitization, e-commerce, e-Government, and e-health remain relatively low.

Modelling the impact of innovation performance on digital competitiveness: The key role of innovation and technologies

The objective of this paper is to evaluate the innovation and digital competitiveness of the EU-27 countries and to reveal the effect of innovation performance on the changes in digital competitiveness. We obtained secondary data from the annual reports of the Global Innovation Index (GII), Summary Innovation Index (SII), and Digital Economy and Society Index (DESI) for the years 2017 to 2021. Using structural equation modeling, the main concept was to develop a new variable, Innovation Performance (IP), which was created by combining the indices of the GII and SII dimensions within a new three-factor model. The modelling findings revealed that both indexes had a statistically significant impact on the variations in the IP value, with the SII exerting a greater influence compared to the GII. The IP variable in the modified model has a significant positive impact on the change in the score of the DESI. We found a positive impact for 10 dimensions (from 19) and a negative impact for firm investments. The highest positive impact was confirmed for research systems, information technologies, and human resources. Our findings also highlight real economic contexts and drivers for EU countries' strategies and policies in the progress of digital competitiveness.

A Review of E-Government Practices in the Age of Digitalization

In the era of digitalization, this study comprehensively reviews e-government practices, focusing on the European Union member states, with a particular emphasis on Slovakia and the Czech Republic. The purpose of this research is to analyze the impact of public administration digitalization on corruption, utilizing a comparative and correlative research analysis. The study also investigates the clustering of e-government practices in the EU using Gaussian Mixture Models. The methodology employed includes an extensive review of existing literature on e-government maturity models, benchmark frameworks, and national concepts of public administration informatization. Data from authoritative sources such as the Digital Economy and Society Index (DESI), E-Government Benchmark reports, and national reports, including Slovakia's National Concept of Public Administration Informatization, contribute to a robust analysis. Results reveal the nuanced relationship between public administration digitalization and corruption levels in EU member states. Clustering based on Gaussian Mixture Models provides insights into the diverse landscape of e-government practices. Furthermore, the study compares the digitalization progress of Slovakia and the Czech Republic, shedding light on the challenges and successes of these nations in implementing e-government services. In conclusion, the findings underscore the significance of e-government in shaping transparent and efficient public administrations. Recommendations include fostering international collaboration to share best practices and addressing shortcomings in e-government policy implementation. The research implications extend to policymakers, researchers, and practitioners, offering valuable insights for advancing e-government development. This study contributes to the ongoing discourse on e-government, aligning with the global effort towards sustainable development and digital governance. As governments strive to provide citizen-centric digital services, understanding the intricacies of e-government practices becomes imperative for informed decision-making and policy formulation.

Digital Readiness and Economic Growth: Analyzing the Impact of DESI Scores on GDP in European Countries

This study investigates the impact of the Digital Economy and Society Index (DESI) on Gross Domestic Product (GDP) across European countries, incorporating control variables such as Industrial Production, Employment, Inflation, and Investment. The research employs panel regression analysis of data from 22 European nations from 2017 to 2022, focusing on DESI components like Human Capital, Connectivity, Integration of Digital Technology, and Digital Public Services. The study's findings reveal significant correlations, with specific emphasis on the positive influence of Human Capital and Integration of Digital Technology on GDP, while showing an unexpected negative correlation with Digital Public Services. This research contributes to the understanding of the complex relationship between digital readiness and economic performance, offering valuable insights for policy development and economic planning in the era of digital transformation.

СУЧАСНИЙ СТАН ЦИФРОВІЗАЦІЇ КРАЇН-ЧЛЕНІВ ЄС

This article explores the present status of digitization across European Union member states. While the EU maintains common goals and overarching strategies for digitalization, individual member nations exhibit diverse levels of progress in its implementation. The asynchronous pace of digitalization among EU member states stems from various factors, including economic disparities, variations in technological infrastructure and legal frameworks, cultural and social influences, disparities in education and digital literacy, divergent government initiatives and funding levels, and the extent of collaboration between the public and private sectors. Each member state contributes to distinct dimensions of progress in the implementation of digitalization. The European Commission facilitates the monitoring of digital competitiveness and indicators across EU member states through the utilization of the Digital Economy and Society Index (DESI) report. This report evaluates diverse aspects of the digital economy and society, offering a holistic perspective on digital development within the EU. The current digital landscape in individual EU member states has been analyzed. The study examines the dynamics of changes in specific indicators (connectivity, human capital, integration of digital technologies, and state digital services) within the framework of the DESI from 2015 to 2022 in both the European Union as a collective entity and the individual member states. The research findings indicate that, on the whole, there has been noteworthy advancement in digitalization across all EU member states over the past decade. Nevertheless, the study highlights the contemporary challenges reflected in the objectives outlined in the "Digital Decade" program and the asynchronous fulfillment of these goals among member states. The most significant progress has been observed in accomplishing objectives related to digitalizing public services. All figures of this indicator are approaching the maximum. Notable advances have been made in the connectivity or digital infrastructure domain in implementing 5G and high-speed communications. However, there is a recognized need for further development, particularly in establishing distribution nodes and advancing the field of quantum computing. Examining the indicator of human capital, member states have made significant progress in imparting basic digital skills to their populations. Nevertheless, increasing the number of Information and Communication Technology (ICT) specialists remains required. Turning to the integration of digital technologies, specifically the digital transformation of businesses, discernible progress has been achieved in incorporating digital technologies into Small and Medium Enterprises (SMEs) activities. However, further advancement necessitates the introduction of cloud technologies and artificial intelligence into the operations of enterprises across the European Union.

Digital Intensity and Technology Adoption in European Enterprises: Comparative Analysis Using NRI and DESI 2023 Data

A number of targets aimed at promoting digital transformation have been set up within the framework of the 2020-2030 Digital Decade. An abundance of scientific research has shown the importance of digital technologies and the impact they have on the competitiveness of businesses. The objective of this study is to conduct a comparative analysis of the digital technology applications used by European Union enterprises in an effort to identify any potential linkages. This study primarily analyses the use of artificial intelligence (AI), cloud services, and Big Data, as well as the current level of digital intensity and skills. In addition, the research evaluates the extent to which the strategy document 2030 Digital Compass of the European Union, which delineated the goals pertaining to technology applications, has been achieved so far. The purpose of this assessment is to provide guidance for the subsequent seven years of the development stage. The evaluation is conducted with data acquired from the Network Readiness Index (NRI) and the Digital Economy and Society Index (DESI) for the year 2022.

Evolution of the Digital Economy and Society Index in the European Union: Α Socioeconomic Perspective

Abstract The rapid development of information and communication technologies (ICT) in recent years has brought about significant changes in many social sectors such as communication, economy, entertainment, and others. To define the key role that ICT plays in its development course, the European Union (EU) has developed a composite indicator, the Digital Economy and Society Index (DESI), to assess the digital policy performance of its Member States. In the current work, an attempt is made to evaluate the performance of the EU countries on the digital economy and society with respect to implemented EU digital policies by studying the five dimensions of the DESI for the years 2014–2019, using the corresponding DESI reports (DESI 2015 – DESI 2020). Moreover, the digital convergence among EU Member States, in terms of similarity of their performance in the five dimensions of the DESI by grouping them according to the optimal number of clusters, is also examined. Since the optimal number of clusters is two, EU Member States are classified in two groups, one of high and one of low performance in the five dimensions of the DESI. The evolution of each member country and the possible transitions from one group to another during the years 2014–2019 is also a point of interest. The grouping of EU Member States into the two clusters showed that socioeconomic factors may affect the overall DESI. Linear mixed effect models confirm the positive effect of Gross Domestic Product per capita, the public expenditure for education and research and development (R&D) on the DESI and the negative effect of the average number of weekly working hours. The results could be used to reform the existing EU digital policies and identify areas where further improvement is needed.

Opportunities for healthcare digitalization in Europe: Comparative analysis of inequalities in access to medical services

Digitalization of healthcare systems is a great opportunity to address inequalities in access to healthcare in the European Union. There is an urgent need to build on what we learned from the COVID-19 pandemic, where digital health technologies were integrated swiftly to limit challenges in healthcare delivery. We created a database for the 27 European Union countries from the European Health Interview Survey (EHIS), the Digital Economy and Society Index (DESI), and other Eurostat databases. We performed k-means cluster analysis to group EU countries along two dimensions: inequalities in access to medical services and level of digitalization. We identified five distinct clusters: two clusters with high, two clusters with moderate, and one cluster with low unmet need for healthcare. Regarding digitalization, only one cluster comprising the Nordic countries, Spain and Cyprus exhibit high digital readiness. A cluster comprising the most developed countries in Western Europe represents moderate levels of both unmet need for healthcare and digitalization. For most EU countries, there is still a need to build digital infrastructure for the healthcare industry, which in the long term may increase the number of digital solutions used by both patients and healthcare professionals. Policy makers across the EU need to consider investing in initiatives that would support digital health solutions as an effective means of healthcare provision and healthcare management.

Baltic States Cyber Security Policy: Development of digital capabilities in 2017-2022

Background The Baltic Sea region is currently one of the tensest areas in Europe, with Russia potentially challenging the international order by provoking a new confrontation with the North Atlantic Treaty Organization (NATO). In this context, the Baltic States of Lithuania, Latvia, and Estonia are developing their cyber security capabilities, which provides an intriguing example of how small states with an aggressive neighbour can operate. The perceived threat is driving the development of cyber capabilities, and policymakers are prioritizing efforts to strengthen their digital capabilities. Methods This article aims to examine the security challenges faced by the Baltic States in the digital environment and their strategies for enhancing digital capacity building competencies. Additionally, the article focuses on the Baltic States' efforts to build and strengthen cyber capabilities, which serve as the foundation for their cyber security policies. To accomplish this, data from the Digital Economy and Society Index (DESI) was utilized, employing research methods including quantitative, qualitative, and comparative analyses. This approach aimed to evaluate and compare the progress in digital capabilities among the Baltic States. Additionally, an analysis of strategic documents was conducted to gain insight into each country's perspective on cyber security and to identify opportunities for the development of this field in consideration of available resources. Results The findings emphasize the Baltic states' dedication to bolstering their cyber resilience, primarily motivated by the perceived threat from Russia. The study underscores the intricate relationship between socioeconomic factors and a nation's cyber capabilities. Conclusions The conclusion drawn is that their endeavours to establish and enhance cyber capabilities constitute a pivotal component of their cybersecurity strategy, thus contributing to regional stability and NATO's collective defence.

Digital Revolution, Sustainability, and Government Revenues: A Transversal Analysis of How Digital Transformation and Sustainable Practices Impact Sustainable Government Revenues

In recent decades, digital transformation and sustainability have become two crucial aspects of economic and social development in the European Union (EU), improving government tax collection and other government incomes. This paper investigates the interplay between digital transformation and sustainability and their impact on total general government revenue (TGGR) in the European Union (EU). The study uses quantitative research methods to analyze relationships among variables, including artificial neural networks and cluster analyses. The variables considered in this research are the Digital Economy and Society Index (DESI), the Sustainable Development Goals (SDG) index, and TGGR. Our findings reveal intricate connections between digital transformation, sustainability, and TGGR across EU member states. The DESI score measures the level of digitalization within each country, while the SDG Index assesses sustainability performance. The study demonstrates that countries with higher DESI scores tend to experience increased TGGR, indicating that a more robust digital economy contributes positively to government revenue, among other elements. The research identifies clusters of EU member states with similar patterns of digital transformation, sustainability, and TGGR. These clusters highlight challenges and opportunities, guiding policymakers in tailoring strategies to boost digitalization and government revenue sustainably.

IMPACT OF DIGITALISATION ON PRODUCTIVITY GROWTH IN EU MEMBER STATES

Recent economic studies on the relationship between digitalisation and economic growth show some ambiguity in the results due to the use of different methods, measures, country samples and time periods. The purpose of this article is to theoretically substantiate, build and econometrically test the model of the impact of digitalisation and other important factors on the growth of total factor productivity in the countries of the European Union for the period of recent years for which data are available. Methodology. The regression analysis of panel data with fixed effects was conducted. The regression estimation of the model is done for 27 EU countries and the entire European Union for the available periods 2017-2022. The robustness of the model to the choice of alternative regression methods, heterogeneity, autocorrelation and random effects is also tested. The model is based on the principles of the endogenous growth theory. The author substantiates and models the relationship of productivity growth with digitalisation, exports, imports, use of intellectual property rights, research and development, foreign investment, human capital and institutions; calculates the indicator of total factor productivity (TFP) based on the Cobb-Douglas function; the European Commission's Digital Economy and Society Index (DESI) is chosen as a measure of digitalisation. Regression results. It is proved that digitalisation is an important factor in productivity growth in the countries of the EU sample, which has a positive and significant impact on total factor productivity (a 1% increase in the digitalisation index leads to an increase in TFP by about 0.1%). Trade openness (exports and imports) was confirmed to remain a key factor affecting productivity. Income from the use of intellectual property rights has a positive, statistically significant impact on TFP growth, although the magnitude of this impact is rather small compared to the impact of digitalisation and trade. It has been found that the quality of institutions can be important for productivity growth, which is an argument for relevant reforms at the level of the government and local communities. The impact of research and development, foreign direct investment, and human capital on TFP growth is difficult to interpret due to the lack of statistical significance of these parameters, which requires further research.

Measurement of digital development with partial orders, Tiered DEA, and cluster analysis for the European Union

AbstractThe digital economy is increasingly seen as an essential cornerstone in developing national strategies and industrial policies to enhance national competitiveness. On the other hand, a realistic assessment of digital readiness is essential for developing appropriate policies. In our paper, we group the countries of the European Union (EU) using three different methods applied to a dataset consisting of the four main dimensions of the EU's Digital Economy and Society Index (DESI) in order to identify Europe's main geographical “fault lines” in terms of digital readiness. DESI is a composite index aggregating several digitalization-related indicators to benchmark the progress of digital transformation in each member state. However, our methods aim not to rank countries but to identify groups of countries that are close to each other. The three methods used in the paper are partially ordered sets (poset), Tiered Data Envelopment Analysis (TDEA), and cluster analysis, known from multivariate statistics. The three types of clustering show a high degree of similarity, indicating the robustness of the results. Another research question relates to the extent to which the digital development of the EU Member States corresponds to the economic development of the countries and core–periphery relationships. While we can observe a high degree of similarity between the more and less developed clusters in terms of digital readiness and the groups that can be identified in terms of economic development and institutional quality, we also notice some peculiar exceptions (which could provide examples of best practices).

Cognitions affecting innovation among generation Z entrepreneurs: the external enablement of digital infrastructure

PurposeThe current research aimed to investigate the external enablement role of Digital Infrastructures (DI) in the interplay of entrepreneurial cognitions and innovation.Design/methodology/approachData from the Global Entrepreneurship Monitor (GEM) and Digital Economy and Society Index (DESI) were used for analyses. This yielded a sample of 8,601 Generation Z entrepreneurs operating in 25 European countries.FindingsApplying hierarchical moderated regressions showed that socio-cognitive components of an entrepreneurial mindset (self-efficacy, risk propensity, opportunity identification) affect innovation among Generation Z entrepreneurs. More importantly, DI plays an external enablement role in the interplay of cognitions and innovation among Generation Z entrepreneurs.Originality/valueThis study contributes to the socio-cognitive theory of entrepreneurship by integrating an external enablement perspective into the study of cognitions and entrepreneurial outcomes (here, innovation). It contributes to the digital technology perspective of entrepreneurship by connecting the conversation about the socio-cognitive perspective of entrepreneurship regarding the role of cognitions in innovation to the conversation in information systems (IS) regarding technology affordances and constraints. This study extends the application of the external enabler framework to the post-entry stage of entrepreneurial activity and integrates a generational perspective into it.

Digitalization in Europe: A potential driver of energy efficiency for the twin transition policy strategy

This paper aims to study the impact of digitalization on energy efficiency in Europe, where institutions are committed to promote both digital transformation and energy transition by implementing the European Twin Transition, ETT [1]. The paper starts by empirically analysing the state of play of the Twin Transition across European Member States (MS) by mapping the Digital Economy and Society Index (DESI), its sub-indices and the energy productivity. We then discuss the impact of the abovementioned digital indicators on energy productivity growth in 26 European MS during the period 2016–2020 by applying a system GMM model. The results show a significant and positive impact of digitalization on energy efficiency and relevant complementarities across diverse digitalization dimensions. This study contributes in an original manner to the literature by applying for the first time DESI and its sub-indices in a European twin transition analysis; moreover, empirical insights have important policy implications because all the variables considered are parts of the European policy targets.

The Effect of Digitalization on Youth Unemployment for EU Countries: Treat or Threat?

Unemployment affects approximately 73 million young people, representing 17.9% of the global youth workforce in 2022. Although there are several policies to prevent youth unemployment, digitalization seems to be one of the strongest. This research focuses on the impact of the Digital Economy and Society Index (DESI) on youth unemployment in 27 European countries from 2018 to 2021. For the research, the “Digital Economy and Society Index” was measured with four sub-dimensions. These were “connectivity”, “digital public services”, “human capital”, and “digital technology integration”. Additionally, “Youth Unemployment” was measured with three sub-dimensions. These included the “long-term youth unemployment rate”, “not in education, employment, or training rate”, and “youth unemployment rate”. The analyses were conducted using SmartPLS 4 and the results showed that the DESI reduces youth unemployment each year. According to the findings, the indicators of DESI can be an effective strategy for combating youth unemployment in European countries.

Agricultural and rural digitalisation in regional sustainable development: A comparative study between China and the European Union

Since the turn of the twenty-first century, digitalisation has gained widespread acceptance as a powerful tool for socioeconomic and environmental progress. Agricultural and Rural Digitalization (ARD) has been less researched than urban digitalisation, which received the most public interest. In this study, I addressed the advantages and significance of Agricultural and Rural Digitalization for regional sustainable development; and how our work can address the present implementation-related issues. The Digital Economy and Society Index (DESI) is an important indicator utilised to summarise digital performance in the European Union, and it is used in this research to assess the development of digitalisation. I made a comparison study to address the current issue and underline the relevance of agricultural and rural digitalisation by analysing official documents. Digitalisation proved to impact sustainable rural development positively, and a monitoring system can be used to produce policy-oriented recommendations. Our research aided people’s understanding of China’s program for smart and digital rural areas and provided policymakers with alternative strategies between China and the European Union when they needed a reference on the development of digital rural areas.

How to Measure Knowledge Economy

The paper’s primary goal is to analyse the development of Knowledge Economy (KE) measurement methods ranging from those based on national income to indices identifying and combining the relevant indicators. The paper focuses on four current global and European KE level indices: Global Innovation Index (GII), Global Knowledge Index (GKI), European Innovation Scoreboard (EIS), and Digital Economy and Society Index (DESI), highlighting persistent significant differences in the perception of the very essence of KE, as there is no clear interdisciplinary definition of the initial concept of knowledge, leading to further problems with ambiguous and insufficiently specific definitions and measurement of KE. Tacit aspects of knowledge are rarely part of KE definitions or measurements, excluding a large part of the knowledge system from KE measurements. The results of the analysis show that the set of KE indicators used by the individual KE indices is heterogeneous, with the set of intersecting indicators having different weights in terms of importance. Frequent interventions in the indices by their authors were observed, such as changes in index methodology, the indicators used, main pillars (subindices), etc. Despite the high heterogeneity in the approach to measuring KE, we identified the pillars, which can be viewed as the core pillars of KE. These include, for example the level of ICT, R&D, human resources, innovation, patents, and education.

Efficiency of Digital Economy in the Context of Sustainable Development: DEA-Tobit Approach

The paper aims at measuring the efficiency of the digital economy in EU countries. For that purpose, data envelopment analysis (DEA) is used. Sub-dimensions of the Digital Economy and Society Index (DESI) are used as inputs and the Sustainable Development Goals Index (SDGI) as an output. The results revealed that Bulgaria, Italy and Romania are the most efficient digital economies in terms of human capital; Belgium, Bulgaria, Cyprus, Croatia, Estonia, Finland, Greece, Lithuania, Poland and Portugal in terms of connectivity; Bulgaria, Hungary and Romania in terms of integration of digital technology; and Romania in terms of digital public services. The result of tobit regression analysis showed that not all the indicators of the DESI dimensions positively influence the efficiency of the digital economy.

Impact of COVID-19 on the readiness of enterprises for employee training with the use of ICT

This paper examines the impact of the COVID-19 pandemic on the readiness of enterprises for employee training using ICT. It first examines Eurostat's secondary data, mainly comparing 2019 and 2022 for medium-sized enterprises (50-249 employees, all sectors excluding the financial sector) from the Visegrad four countries. It then examines two specific Digital Economy and Society Index (DESI) indicators: Human Capital and Integration of Digital Technology. The paper concludes with an analysis of these indicators using the Kruskal-Wallis test to confirm or reject the assumed positive relationship between the indicators, and data about enterprises that provide training in order to develop the ICT skills of their employees. Data on ICT usage in enterprises were collected from Eurostat. Data on the Digital Economy and Society Index were collected for comparative analysis. COVID-19 was found to have had no significant effect on enterprise readiness for employee training with ICT. The results also suggest no positive relationship between ICT employee training and indicators from the DESI index. Learning and development practitioners should take greater account of changing and unpredictable realities, as well as the evolving nature of information and communication technology (ICT). The COVID-19 pandemic may yet help to modernise existing development offerings in organisations and foster a culture of lifelong learning.