Digital Gap in EU Countries and its Impact on Labour Productivity and Global Competitiveness

Abstract

Nowadays digitalization has become a global trend that allows countries and individuals to get a number of benefits for economic and social development. Every country is trying to promote digital innovation through regulatory policies. However, the results of such policies vary for different countries, creating digitalization gaps. The aim of the research is to assess the gaps in digitalization process and productivity among EU-members countries, and to evaluate how such gap impact on competitiveness of the country. On the basis of DESI index and labour productivity data for EU-members four clusters were formed. Also, on the base of International DESI index and Global Competitiveness Score EU-members and seven global developed countries were divided into four clusters. As a result, leaders, perspective countries, followers and transition countries were identified reflecting the digital and labour productivity divide between them. Leading positions are occupied by North Europe countries, while number of Eastern Europe countries located at opposite side. Results of cluster analysis shows the linkage between digital development and human development due to co-movement of DESI and Human Development Index.