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Digitalization Index: Speeding Up Europe's Digital Economies
1. 1
Digitalization of the
European economies.
Time to speed up
Piotr Arak
Senior Analyst for Social Affairs
19 April 2016, Brussels
2. 2
What does digitalization mean?
Digitization – changing the format from
analogue to digital,
Digitalization – the adaptation and increased
use of digital, computer technologies by
organizations, sectors of the economy, countries,
etc.
We use the latter meaning.
3. 3
Digital transformation in action
Digital technologies are spreading rapidly in developing countries
World Bank, 2016, Digital Dividends.
4. 4
A typical day in the life of the internet
World Bank, 2016, Digital Dividends.; and Facebook.
10. 10
Sectors of the Polish economy and their
level of digitalization and the European
average
11. 11
Digital Europe
THE DIGITAL NORTH
These are the best-digitalized countries: Norway, Iceland, Denmark, Finland,
the Netherlands and Sweden.
THE DEVELOPING CONTINENT
This group comprises the United Kingdom, Luxembourg, Belgium, Austria,
Estonia, Malta and Germany – countries in different parts of Europe, which
have almost caught up with the leaders.
LITTLE INTERESTED
These are countries with a National Digitization Index between 40 and 50
points: Lithuania, France, Spain, Slovenia, the Czech Republic, Portugal, Latvia
and Slovakia.
STRAGGLERS IN DIGITALIZATION
These are the bottom ranking countries which have, on average, the poorest
results (below 40 points). It is here – alongside Italy, Croatia, Hungary,
Cyprus, Greece, Bulgaria and Romania – that Poland finds itself.
12. 12
Which countries are best prepared for
the digital revolution? - National
Digitalization Index (points)
13. 13
Poland is among a group of countries
that are catching up relatively quickly in
digitalization
Percentage increase in the value of National Digitalization Index, 2008-2014
14. 14
Without digitalization there is no
business
Relationship between National Digitalization Index
and the Doing Business Index
15. 15
Problem with data but also with the
economy of scale
90%
91%
92%
93%
94%
95%
96%
97%
98%
99%
100%
Poland EU28
250 persons employed or
more
From 50 to 249 persons
employed
From 20 to 49 persons
employed
From 10 to 19 persons
employed
From 0 to 9 persons employed
Number of enterprises by size class of employment in 2013 (latest)
Eurostat
17. 17
What do Europeans think about data
protection
0 10 20 30 40 50
France
Netherlands
Germany
Spain
Greece
Belgium
Czech Republic
Sweden
Portugal
Romania
Cyprus
Bulgaria
EU28
Latvia
Luxembourg
Malta
Estonia
Hungary
Italy
Slovenia
Austria
Poland
Croatia
Slovakia
Finland
United Kingdom
Denmark
Lithuania
Ireland
Trust in internet companies (e.g.Facebook) Trust in government
0 20 40 60 80 100
Spain
Greece
Croatia
Romania
Italy
Cyprus
Poland
Hungary
Slovenia
Portugal
Lithuania
United Kingdom
EU28
Slovakia
Germany
Latvia
Bulgaria
Ireland
Czech Republic
France
Malta
Austria
Belgium
Luxembourg
Netherlands
Estonia
Denmark
Sweden
Finland
Eurobarometer
18. 18
How much would the economy benefit
from open data policy
Additional increase in GDP level by country 2013-2020 (%)
demosEuropa, 2014, Big and open data in Europe.
20. 20
Enterprises selling cross-border to other
EU countries
Enterprises having done electronic sales to other EU countries in the last
calendar year (2015)
0
2
4
6
8
10
12
14
16
18
Romania
Bulgaria
Greece
Poland
Latvia
Hungary
Italy
Spain
Estonia
Finland
Luxembourg
Slovakia
EU28
Portugal
France
Cyprus
Croatia
UnitedKingdom
Lithuania
Germany
Sweden
Denmark
Netherlands
Austria
Slovenia
Malta
CzechRepublic
Belgium
Ireland
Eurostat
22. 22
What can we do to boost e-business?
• Regulate access to personal data, taking
into account the interests of all groups.
• Create a system of tax credits for the
purchase of innovative technological
solutions.
25. 25
Persons using cloud computing
0
5
10
15
20
25
30
35
40
45
50
Croatia
Poland
Lithuania
Bulgaria
Greece
Slovakia
Slovenia
France
Italy
CzechRepublic
Austria
Cyprus
Latvia
Portugal
Romania
Germany
EU28
Spain
Hungary
Belgium
Malta
Estonia
Finland
Ireland
Netherlands
Sweden
UnitedKingdom
Denmark
Luxembourg
Persons that used internet storage space to save documents, pictures, music,
video or other files in 2015 (%)
Eurostat
26. 26
Enterprises using cloud computing
0
10
20
30
40
50
60
Romania
Latvia
Poland
Greece
Bulgaria
Hungary
Cyprus
Germany
Austria
France
Luxembourg
Portugal
Lithuania
Spain
Estonia
CzechRepublic
Slovenia
Malta
EU28
Slovakia
Belgium
Croatia
UnitedKingdom
Ireland
Netherlands
Denmark
Sweden
Italy
Finland
Enterprises used Cloud Computing services in 2014 (%)
Eurostat
27. 27
Familiarity with internet security
Individuals who know that cookies can be used to trace movements
of people on the internet in 2015 (%)
0
10
20
30
40
50
60
70
80
90
Romania
Bulgaria
Cyprus
Poland
Slovakia
Latvia
Greece
Hungary
CzechRepublic
Lithuania
Portugal
Spain
Malta
Italy
Croatia
Ireland
Slovenia
EU28
Estonia
Sweden
Belgium
UnitedKingdom
France
Austria
Luxembourg
Denmark
Germany
Netherlands
Finland
Eurostat
28. 28
How can we support e-skills
acquirement?
• Ensure training in computer literacy at
every stage of education.
• Support and develop educational
programmes relating to personal data.
32. 32
Share of broadband subscriptions
>= 30 Mbps in 2015
0
10
20
30
40
50
60
70
80
90
Croatia
Greece
Cyprus
Italy
France
Austria
Slovenia
Germany
Estonia
Spain
Poland
EU28
Slovakia
Finland
CzechRepublic
UnitedKingdom
Luxembourg
Denmark
Hungary
Bulgaria
Ireland
Latvia
Portugal
Sweden
Malta
Lithuania
Netherlands
Romania
Belgium
Share of fixed broadband subscriptions >= 30 Mbps - advertised download speed
Eurostat
33. 33
Mobile broadband take-up
Mobile broadband penetration is defined as the number of active mobile
broadband SIM cards per 100 people.
0
20
40
60
80
100
120
140
160
Hungary
Greece
Portugal
Slovenia
Romania
Belgium
Slovakia
Malta
Lithuania
Latvia
Cyprus
Germany
Austria
Croatia
Bulgaria
CzechRepublic
Luxembourg
France
EU28
Italy
Netherlands
Spain
UnitedKingdom
Ireland
Poland
Estonia
Denmark
Sweden
Finland
Eurostat
34. 34
How can we support development
of ICT infrastructure?
• Promote investment in broadband
infrastructure to ensure universal, high-
quality access to the internet.
• Is there any role for the EU besides
funding the investments in infrastructure
in CEE countries?
37. 37
Sending forms to public institutions
0
10
20
30
40
50
60
70
80
Romania
Bulgaria
CzechRepublic
Italy
Slovakia
Croatia
Poland
Germany
Cyprus
Slovenia
Malta
Hungary
Greece
UE28
Portugal
Latvia
Spain
Lithuania
Austria
UnitedKingdom
Belgium
Luxembourg
France
Sweden
Ireland
Netherlands
Norway
Finland
Denmark
Estonia
Individuals submitting completed forms to public authorities, over the
internet, last 12 months (% of citizens)
Eurostat
38. 38
UN online service index 2014
To arrive at a set of Online Service Index values, more than 90 researchers –qualified graduate
students and volunteers from universities in the field of public administration—assessed each
country’s national website in the native language, including the national portal, e-services portal
and e-participation portal, as well as the websites of the related ministries of education, labour,
social services, health, finance and environment as applicable.
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1 Bulgaria
CzechRepublic
Malta
Slovenia
Romania
Croatia
Cyprus
Slovakia
Poland
Hungary
Greece
Luxembourg
Portugal
EU28
Denmark
Germany
Belgium
Ireland
Latvia
Sweden
Austria
Italy
Lithuania
Estonia
Finland
UnitedKingdom
Netherlands
Spain
France
39. 39
Bad online services are an outcome
of overall bad services
20
25
30
35
40
45
50
55
0.2 0.4 0.6 0.8 1
Qualityofpublicservices2012
Online service index 2014
Relationship between the quality of public services in 2012 (Eurofound)
and online service index 2014 (UN)
40. 40
How to develop a better e-
administration?
• Create a single government service to handle official
matters.
• Coordinate the processes of ICT procurement by the
administration.
• "Whatever works" strategy. The recent 500 plus
programme of a universal family benefit introduced in
April 2016 can be acquired filling a form via e-banking.
Maybe if the public services do not work, the private
ones could be used instead?
• Is there anything that the EU can do to make the quality
of e-administration in the member countries better?