The digital entrepreneurial ecosystem in the European Union: evidence from the digital platform economy index

Abstract

Digital platforms play a central role in the development of the Digital Entrepreneurial Ecosystem (DEE). The growing body of research addressing the issue of imbalances in DEEs has raised the challenge of how to recommend policies specifically designed to overcome the causes of such imbalances. This paper explores the issue of platformization in three developed and high-income countries in the European Union: Germany, France and Austria. The framework and empirical measurement of the Digital Platform Economy (DPE) Index are used to analyze the state of DEE in these three countries, identify the most prominent weaknesses that could be barriers, and propose policy recommendations to overcome these barriers and promote the development of DEE. The results of the three-step investigation present the current state of DEE in each country and find that similar constraining elements in the Digital Multi-Sided Platforms of the three countries have the most potential to systemically disrupt the DEE balance. Tailor-made policies with a holistic approach are recommended to address these constraining elements and target overall DEE growth. The results of this study are expected to motivate future research highlighting the issues surrounding multi-sided platform markets in the context of digital economic development in the European Union.