Digital Transformation and Global Competitiveness in the EU

Abstract

Digital development plays a pivotal role in shaping the contemporary global landscape, influencing various aspects of society, economy, and governance. In today’s interconnected world, it serves as a catalyst for innovation, efficiency, and inclusivity across diverse sectors. This study investigates the connection between digital transformation, globalisation performance, and national competitiveness. The research draws on data from EU member states and eight developed countries to assess and compare their levels of digitalisation, globalisation outcomes, and competitiveness against established European benchmarks. The findings revealed that the EU-28 member states compare favourably with the eight non-EU countries, with the top EU-28 countries exhibiting digital performance on par with or exceeding the best global standards. Multiple regression modelling confirmed the connection between the Globalisation Index and the total R&D funding among EU members based on data from 2015 to 2018. The research concluded that digitalisation, as measured by the DESI and KOF Index, significantly impacts global competitiveness scores.