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1
Digitalization of the
European economies.
Time to speed up
Piotr Arak
Senior Analyst for Social Affairs
19 April 2016, Brussels
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
Digital transformation in action
Digital technologies are spreading rapidly in developing countries
World Bank, 2016, Digital Dividends.
4
A typical day in the life of the internet
World Bank, 2016, Digital Dividends.; and Facebook.
5
Business cycles in the economy
6
7
Pillars of analysis of digitalization of
economies and countries
8
Level of digitalization of European
economies – Digitalization of Economy
Index (points)
9
Most rapidly digitalizing economies
Percentage increase in Digitalization of Economy Index, 2008-2014
10
Sectors of the Polish economy and their
level of digitalization and the European
average
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
Which countries are best prepared for
the digital revolution? - National
Digitalization Index (points)
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
Without digitalization there is no
business
Relationship between National Digitalization Index
and the Doing Business Index
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
1. E-economy
16
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
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.
19
Turnover from e-commerce
0
5
10
15
20
25
30
35
40
Total electronic sales by enterprises, as a % of their total turnover (2015)
Eurostat
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
21
Lies and statistics
0
10
20
30
40
50
60
70
80
Poland
Romania
CzechRepublic
Latvia
Hungary
Bulgaria
France
Estonia
Slovakia
Greece
Italy
Croatia
Germany
Portugal
EU28
Luxembourg
Spain
Lithuania
Austria
Slovenia
Belgium
Finland
Sweden
UnitedKingdom
Denmark
Cyprus
Netherlands
Ireland
Malta
Enterprises using social media in 2015 (%)
Eurostat
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.
Fire-chat
23
2. E-skills
24
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
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
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
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.
Fire-chat
29
3. E-infrastructure
31
Fixed broadband
0
10
20
30
40
50
60
70
80
90
100
Italy
Bulgaria
Poland
Finland
Lithuania
Romania
Portugal
Latvia
Ireland
Austria
Greece
Sweden
Hungary
Spain
Cyprus
Croatia
France
Slovakia
EU28
Slovenia
CzechRepublic
Denmark
Estonia
Belgium
Malta
Germany
UnitedKingdom
Netherlands
Luxembourg
Households with fixed broadband connection in 2015
Eurostat
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
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
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?
Fire-chat
35
4. E-administration
36
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
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
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
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?
Fire chat
41
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Digitalization of the European economies. Time to speed up

  • 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.
  • 5. 5 Business cycles in the economy
  • 6. 6
  • 7. 7 Pillars of analysis of digitalization of economies and countries
  • 8. 8 Level of digitalization of European economies – Digitalization of Economy Index (points)
  • 9. 9 Most rapidly digitalizing economies Percentage increase in Digitalization of Economy Index, 2008-2014
  • 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.
  • 19. 19 Turnover from e-commerce 0 5 10 15 20 25 30 35 40 Total electronic sales by enterprises, as a % of their total turnover (2015) Eurostat
  • 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?