Digitalisation in Europe 2020-2021

Digitalisation in Europe 2020-2021
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Taking an early lead on digitalisation is crucial to Europe's lasting competitiveness. Our newest digitalisation report sheds light on the state of digitalisation in European countries:The adoption of digital technologies by firms in the European Union is improving, but it has not yet closed the gap with the United States;While some EU countries are at the global forefront of digital transformation, others risk being left behind.Digitalisation provides a unique opportunity to improve European firms' global competitiveness.To close the digital divide, Europe needs to increase investment and to create ecosystems that support innovation.

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Table of contents

Overview

Digital transformation in Europe

Digital adoption rates (in %), by country

The EIB Corporate Digitalisation Index

EIBIS Corporate Digitalisation Index

EIBIS Corporate Digitalisation Index, by country

DESI and EIBIS Corporate Digitalisation Index, by country

Where do the European Union and the United States stand in digital adoption?

Digital adoption in the European Union and the United States in 2020

Adoption of digital technologies (% of firms), by year

Adoption of digital technologies (% of firms), by sector

Adoption of digital technologies (% of firms)

Box 1. Digital technologies in the EIB Investment Survey (EIBIS)

Adoption of digital technologies (% of firms), by firm size

Share of employment in 2017 (% of employment), by firm size

Average firm size, number of employees and number of firms in the European Union and the United States in 2017

COVID-19 and the growing digital divide

Firms reporting that COVID-19 will lead to an increased use of digitalisation (% of firms), by size and digital intensity

Investment priority over the next three years (% of firms), by size and digital intensity

Digitalisation, intangible investment, innovation and firm productivity

Composition of investment (% of total investment)

Active innovators (% of firms), by size and digital intensity

Productivity gap between digital and non-digital firms (difference in median log productivity) and share of exporters (% of firms), by size and digital intensity

Digitalisation and the labour market

Employment growth over the past three years (% of firms), by size and digital intensity

Distribution of average wage per employee (EUR per employee), by size and digital intensity

Firms investing in training of employees (% of firms), by size and digital intensity

Digital technologies foster the green transition

Firms investing in measures to improve energy efficiency (% of firms) and share of total investment allocated to these measures (% of total investment), by size and digital intensity

Investments to tackle the impact of weather events and to reduce carbon emissions (% of firms), by size and digital intensity

Identification of ICC (investment to address transition and physical risks of climate change) and digital profiles

ICC and digital profiles (% of firms), by size and digital intensity

ICC and digital profiles (% of firms), by country

Markets for environmental innovations (% of environmental innovators), by digital intensity

What are the barriers to digital transformation?

Management practices (% of firms), by size and digital intensity

Digital infrastructure reported as an obstacle to investment (% of firms), by country

Download speed faster than 1/Gbs (% of households) and digital infrastructure as an obstacle to investment (% of firms), by country

Firms reporting that they are credit constrained (% of firms), by size and digital intensity

Policy implications

References

Austria. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (in %)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Belgium. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Bulgaria. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Croatia. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Cyprus. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Czechia. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Denmark. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Estonia. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Finland. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

France. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Germany. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Greece. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Hungary. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Ireland. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Italy. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Latvia. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Lithuania. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Luxembourg. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Malta. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

The Netherlands. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Poland. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Portugal. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Romania. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Slovakia. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Slovenia. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Spain. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Sweden. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

United Kingdom. Adoption of digital technologies (% of firms), by sector

Adoption of different digital technologies (% of firms)

Employment by firm size (% of employment) and digital adoption (% of firms), by firm size

Firms’ management practices and firms reporting COVID-19 will lead to an increase in the use of digitalisation (% of firms), by digital intensity

Appendix A: The EIB Corporate Digitalisation Index

Appendix B: Comparing EIBIS to other data sources

Share of firms using 3D printing according to Eurostat and EIBIS (in %), by country

Share of firms using big data according to Eurostat and EIBIS (in %), by country

ICT patents and digital infrastructure as obstacle, by country

Component on connectivity of the DESI index and component on digital infrastructure of the EIBIS Corporate Digitalisation Index, by country

Component on integration of digital technology of DESI and component of the EIBIS Corporate Digitalisation Index, by country

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Digitalisation in Europe 2020-2021:

Evidence from the EIB Investment Survey

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France

Germany

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