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Research for Rural Development
Today technological progress is reshaping global economic development and changing the overall welfare of societies. Therefore, it is important to assess challenges and readiness of the European Union to use its capacity to ensure that technologies benefit people and bring them towards more inclusive societies enhancing opportunities to use artificial intellect for making health, education, agriculture, services and manufacturing industries more efficient and user friendly. The Digital Economy and Society Index analyses the digital performance of the EU Member States across five main dimensions: connectivity, human capital, use of internet, integration of digital technology, digital public services. However, despite intention to jointly develop Digital Single Market, the gap between the EU top digital countries and less digitally advanced countries remains large. The aim of this paper was to evaluate the digital performance indicators of the EU countries, in particular focusing to Poland and Latvia to assess their progress and potential of their human capital's digital skills. The research is based on theoretical literature studies on industrial revolution stages, European Union Commission documents, indexes and publications available in relevant public institutions such as ministries and industry reports. The research employed monographic method, analysis and synthesis methods as well as graphical data analysis. The research results give evidence that currently Poland's human capital is significantly better prepared for making use of future digital economy challenges than Latvia's human capital, and there is a close link between countries' R&D expenditures proportion of GDP and their human capital's readiness to integrate in digital economy.
TalTech journal of European studies, 2023
The rapid development of information and communication technologies (ICT) in recent years has brought about signifi cant changes in many social sectors such as communication, economy, entertainment, and others. To defi ne 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 fi ve 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 fi ve 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 classifi ed in two groups, one of high and one of low performance in the fi ve 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 aff ect the overall DESI. Linear mixed eff ect models confi rm the positive eff ect of Gross Domestic Product per capita, the public expenditure for education
An assessment of the degree of the development of the digital economy in Poland in comparison to chosen European countries is the main purpose of the paper. The methodology of the conducted research is based on the analysis of secondary sources and applying statistical methods. In order to make the comparison in methodically correct manner, synthetic measures of the development of the e-economy were used in the form of two indexes: NRI (Networked Readiness Index) and DESI (Digital Economy and Society Index). On the basis of available statistical data, four European countries were confronted with Poland. Results of the analysis indicate a relatively unfavorable situation of Poland.
Sustainability
The hypercompetitive global economy of the 21st century is a hub of innovation, technology, talent, skills, speed, efficiency, productivity, and satisfaction. Within this context, the organizations are looking intensely for people with skills and talents that can differentiate themselves in all that noise. The human capital became slowly but surely a mean of efficiency and growth, especially through the premises of digitization, and a key issue of sustainability. The current research is meant to identify and highlight any correlations that might appear between the population’s welfare of 11 Central and Eastern European Countries (CEECs) which are members of the European Union (EU), and the components of the digitization trend, including the new human cloud industry, ICT, and the connectivity to the Internet of Things. In order to achieve the needed insights, the multiple regression analysis was employed, and the latter tested the panel models with fixed effects, both from a temporal...
The aim of the paper is to present data concerning the current gap in the digital competences of human capital in Poland in comparison to other EU countries. To this end we use data from the Digital Economy and Society Index (DESI) and Eurostat. The data show that computer and Internet skills amongst Poles are significantly lower than the skills of other Europeans, including those from other new EU member states. We argue that the gap in human digital skills is the major cause of the low level of digitalisation of the Polish economy as a whole, which may critically impair its development prospects in the context of the EU Digital Single Market
2015
The aim of the paper is to present data concerning the current gap in the digital competences of human capital in Poland in comparison to other EU countries. To this end we use data from the Digital Economy and Society Index (DESI) and Eurostat. The data show that computer and Internet skills amongst Poles are significantly lower than the skills of other Europeans, including those from other new EU member states. We argue that the gap in human digital skills is the major cause of the low level of digitalisation of the Polish economy as a whole, which may critically impair its development prospects in the context of the EU Digital Single Market.
Corporate Governance and Organizational Behavior Review
Digitalization, which gained momentum peculiarly after the invention of the Internet, has had a profound impact on the shape of the economy. It has changed the way of doing business and the labor market structure (Peetz, 2019). This change has brought the rise of automatized business processes and public services which aim to eliminate human manual work but at the same time cannot be realized without humans as a main component of information and communication technology (ICT). In order to fully leverage the positive effects of human capital in digitization, individuals must possess essential digital skills. This paper highlights the importance of citizens’ ICT skills for the acceleration of the digital economy, therefore the empirical analysis conducted examines the impact of different levels of digital skills on the digitalization of the economy. Additionally, the paper investigates whether the way individuals acquire digital skills differs between highly digitalized European Union...
Management şi Marketing, 2022
The first computers were made as early as in the 20 th century, but the rapid development of digitalisation took place in the 21 st century. Nowadays, Industry 4.0 has created a network connection between man and machines. Without computers and the Internet, the world is unthinkable. Digitalisation is pervading every part of our lives. Whether at work or in our leisure activities, digitalisation and the use of digital tools are present. The digital revolution was started by computers and is now an indispensable our lives, for example with the internet, mobile phones, cloud solutions and self-driving cars. It's no coincidence that digital competence is no longer an expectation, but an obligation for employers and employees alike. Several studies have undertaken to define digital skills; however, we can talk about a rather complex competence. The current study examines the question in the dimension of the European Union from a multitude of aspects. The authors use the DESI index and EU statistics on this topic to find correlations between digital potential, use of tools and the exploitation of opportunities offered by digitalisation in thirteen countries. The authors primarily examined the impact of the level of digital infrastructure and the frequency of Internet use on digital skills. It is outlined from statistics that Scandinavian countries have a leading role in the digital competition. Nevertheless, our results throw light on the individual level that digital skills forcefully improve during browsing on the internet, and practical activities have a significant role in development, which the authors named PMP.
Technologies are playing very important role in nowadays business and people lives. Some global and European level indices were created to be able to capture digitization and ITC related processes. One of such indicator is The Digital Economy and Society Index (DESI, European Union level) that was created in context with digital agenda for Europe in 2020. The other is Network Readiness Index (NRI, global level). Also other indicators exist showing country's performance compared with other countries. In this paper the authors compares these indicators between Latvia and other EU countries. No previous research exist that analysis both indicators for European Union.
Curentul Juridic, 2023
The study was published in Curentul Juridic (2023) vol. 26. no. 1. pp. 21-34. Digitization in the European Union is a key, important policy aiming to build the digital economy and society in the European Union, which requires a complex legal relationship between the EU and the Member States. This is one of the reasons why membership of the European Union entails many rights and obligations for our country. One such obligation is that the Union develops a set of indicators from data provided by Member States. With these indicators the Union can compare the Member States' performance in different (economic) areas. One of these is Digital Economy and Society Index (DESI) which is a complex indicator that summerizes relevant indicators of the Union's digital performance and monitor the development of EU Member States' digital competitiveness. In the present study we examine the performance of Hungary in the European Union in recent years through the DESI indicators.
PLOS Digital Health, 2022
Digital divides are globally recognised as a wicked problem that threatens to become the new face of inequality. They are formed by discrepancies in Internet access, digital skills, and tangible outcomes (e.g. health, economic) between populations. Previous studies indicate that Europe has an average Internet access rate of 90%, yet rarely specify for different demographics and do not report on the presence of digital skills. This exploratory analysis used the 2019 community survey on ICT usage in households and by individuals from Euro- stat, which is a sample of 147,531 households and 197,631 individuals aged 16-74. The cross-country comparative analysis includes EEA and Switzerland. Data were collected between January and August 2019 and analysed between April and May 2021. Large differences in Internet access were observed (75-98%), especially between North-Western (94- 98%) and South-Eastern Europe (75-87%). Young populations, high education levels, employment, and living in an urban environment appear to positively influence the development of higher digital skills. The cross-country analysis exhibits a positive correlation between high capital stock and income/earnings, and the digital skills development while showing that the internet-access price bears marginal influence over digital literacy levels. The findings suggest Europe is currently unable to host a sustainable digital society without exacerbating cross-country inequalities due to substantial differences in internet access and digital literacy. Investment in building digital capacity in the general population should be the primary objective of European countries to ensure they can benefit optimally, equitably, and sustainably from the advancements of the Digital Era.
HOLISTICA – Journal of Business and Public Administration
Development and innovation in the digital technologies impact the whole society, communications, finances, trade, education and health services, business patterns and the entire value-added channel. The increase in the speed of digitization and its expansion within businesses leads to significant changes, both regarding the human capital and the way work and place of work are organized, with high impacts on skills, labor standards, human welfare and sustainable development of countries. Digitization involves changes not only in the human capital, but in the organizational one as well, so that for each euro invested in physical capital (hardware) some additional 10 euros have to be invested in intangible activities, especially in the human and organizational capital (Brynjolfsson and McAfee, 2014). The paper aims to analyse the impacts of digitization on human capital in the EU economies, also considering the impact of the COVID-19 pandemic that has speeded up the digitization proces...
Proceedings of the ENTRENOVA – Enterprise Research Innovation Conference, 2022
Since the 2000s, the European Commission has been paying particular attention to the digital development of the European economy and society. Since 2014, the Digital Economy and Society Index (DESI) has been one of the key tools for monitoring and measuring. In 2021, the DESI index's core indicators were aligned with the objectives of the 2030 Digital Agenda, which has four dimensions: human capital, connectivity, integration of digital technology, and digital public services. We sought to determine whether convergence between the Member States could be detected using the third dimension of DESI's annual database. The σ-convergence analysis was used to estimate the reduction over time of the differences in digital technology integration between the Member States, while the β-convergence analysis was used to estimate the rate of catching up with the initial level of development. The σ-and βconvergence were not confirmed. We examined the individual indicators (11) of the integration of digital technology to identify critical areas that need to be addressed in the future to ensure that digital inclusion is as widespread as possible. Our analysis focused on the Member States that joined the EU during the Eastern European enlargements. The performance of all individual indicators is typically below the EU average, and, as the β-convergence analysis shows, the average catching-up rate is not encouraging.
International Journal of Information Systems and Project Management, 2022
The transformation of the economy into a digital environment has become a necessary step in recent years. The consequences of the COVID pandemic have accelerated the digital transformation and the growth of the digital economy. Intensive business engagement in the digital economy requires innovative digital solutions and online means of promotion and sale. European Union (EU) countries need to create the conditions for the gradual transformation. The paper analyses business readiness for the digital economy in EU countries. It aims to compare and assess the current situation of digital readiness based on the set of selected indicators. The analysis includes a multidimensional comparison of EU countries, classification based on cluster analysis, and ranking based on factor analysis results. Results show significant differences among EU countries. Newer member countries, mostly from SouthEastern Europe, are still lagging behind the EU average in e-Commerce activities, usage of social networks, and cloud computing. Furthermore, factor analysis has been conducted to determine underlining factors describing the overall digital readiness of EU countries and rank them accordingly. As well as in the cluster analysis, factor analysis revealed that Nordic EU member countries perform very well and show the highest digital readiness.
Regional Statistics
We build on the argument that measurement of digitalization is essential for effective public policy strategies in order to to govern digital transition. Developing this argument, we investigate the five principal dimensions of the European Commission´s Digital Economy and Society Index (DESI) using a series of multivariate statistics. The analysis can be divided into three groups. First, we analyse the linear relationships between dimensions by correlation analysis, partial correlation analysis, and principal component analysis. In the partial correlation analysis, causal relationships between the dimensions show high correlations. Second, we assign countries into groups with cluster analysis and multi-dimensional scaling. The groups obtained by the two methods are very similar. Finally, we rank the European Union (EU) countries using statistical methods and compare with the results obtained with the overall DESI index. The correlation between the two rankings shows a strong linear relationship. Based on these results we draw conclusions on how to effectively use the DESI data for public policy analysis.
Energies
The main objective of the paper is to present the development of digital economy and society in the Countries of the European Union in the light of the digital convergence of these markets. The analysis was based on the data on the Digital Economy and Society Index (DESI) from 2015 and 2020. Empirical studies have been conducted in two stages. First, basic measures of time series dynamics were used to determine the dynamics of changes in index values. On the other hand, in order to classify countries in terms of similarity of value and structure of the DESI, a cluster analysis was used as one of the basic methods of the so-called unsupervised statistical grouping. The studies presented confirm that the levels of indicators and the dynamics of changes in their value at the level of the synthetic DESI indicator, and in the five underlying areas of analysis, vary despite the fact that almost all are pro-growth, including for isolated clusters of EU-28 countries. When analyzing the DESI...
Amfiteatru Economic, 2022
The digital economy is an alternative to the traditional economy, an area of the future on which investment and R&D efforts are focused both by European forums and by Member States, which have understood the importance of the domain with the onset of the pandemic crisis. The aim of the research is to analyze and predict, on the one hand, the impact of digitalisation on EU Member States' economies by means of the three scenarios for the evolution of the digital component of the economy for the horizon 2025 (the baseline scenario, the high growth scenario and the challenge scenario), and, on the other hand, the Member States' ability to achieve the targets proposed by these scenarios. The analysis covers the period 2013-2025 and quantifies the dynamics of the digitalisation phenomena and processes based on dedicated statistical analyses (frequency series analysis, application of the unicriterion critical probability test, application of the Enter method, performing Pearson correlation tests) by means of the IBM-SPSS 25 software. The purpose of this research is the provision of relevant solutions to decision makers in the development of digitalisation. The study highlighted the placing of the results in favourable scenarios, the current trend regarding digital economy evolution, and presented the most likely scenario to be achieved in terms of knowing the provider offer and the needs of service users. The topicality of the study targets a new approach on the foundations of financial allocations for the sustainable development of the digital economy needed in the current conditions of the global crisis and of the pandemic for the implementation of digital economy development policies. A novelty of this research is the conceptualization, validation and testing of an econometric model capable of quantifying the realism of the scenarios proposed by the European Union regarding the development of the digital economy.
Lecture notes in networks and systems, 2023
The "Digital Europe" program is a central element of the Commission's comprehensive response to the challenge of digital transformation and is included in the proposal on the Multiannual Financial Framework (MFF) for the period 2021-2027. Its aim is to provide a spending instrument adapted to the operational requirements of capacity building in the areas identified by the European Council, as well as to exploit the synergies between them. The program aims, among other things, to develop and strengthen basic skills in artificial intelligence, such as data resources and archives of artificial intelligence algorithms and make them accessible to all enterprises and public administrations; ensure that the essential capabilities needed to secure the EU's digital economy, society and democracy are available and accessible to the EU public sector and businesses, as well as improve the competitiveness of the EU cybersecurity industry; expand the optimal use of digital capabilities, in particular high-performance computing, artificial intelligence and cyber-security, in all sectors of the economy, in sectors of public interest and in society, including the implementation of interoperable solutions in areas of public interest, as well as facilitating access to technology and know-how for all enterprises. To better understand the phenomenon, this study aims to analyse the use of digital technology among European enterprises through a composite index of artificial intelligence (AI) and information technologies (ICT) (using the Wellness Methodology Fair and Sustainable) to measure the territorial gaps and to know the European countries more or less inclined to use it. For this purpose, this contribution develops with the following structure:-description of the theoretical reference framework and the indicators used to regard "artificial intelligence" and "information technologies";-description of the methodology for the construction of the composite indicator;-description of the results, also through a geo-referenced map of European countries willing to use digital technology;-conclusions
Baltic Journal of Modern Computing, 2019
The integrated Digital Economy and Society Index (DESI) is calculated to indicate "progress of EU countries towards a digital economy and society"; nevertheless there are serious barriers to practical use of the DESI. The methodology of the DESI does not apply to development indicators; the natural doubts are on significance of more than 30 aspects for socioeconomic growth. The study propose the methodology for determination of the key drivers of digitalisation, hence areas of priority investments, which can provide the most dynamic socioeconomic progress as well as return of investments. The intelligent data mining and mathematical modelling methods and tools have been used to achieve a conclusiononly six aspects actually are significant for socioeconomic growth. Results are applicable to all EU member states; any economy would use them for strategic investments planning. Current strengths and weaknesses of the Baltic States are analysed in more detail and recommendations are elaborated.
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