International Index of Digital Economy and Society (I-DESI): Trends in the Development of Digital Technologies

Abstract

Purpose of research . The aim of the study is to conduct statistical research and assess the level of digitalization of the economy of the European Union and some non-EU countries. The focus is on assessing the level, dynamics and directions of information and communication technologies development in the European economy on the example of the international index of digital economy and society (I-DESI). The strongest and weakest countries were identified, and the impact of components (sub-indexes) of the I-DESI index on GDP was studied. Materials and methods . For this study, the digital economy and society index (DESI – Digital Economy and Society Index), which is a composite measure that studies the digital indicators of Europe, developed by DG CONNECT (the European Commission) to provide an evidence-based contribution to the assessment of digital development in the EU as a whole, is considered as an assessment of the level of digitalization. Based on this index, the international digital economy and society index (I-DESI) was developed in 2018, which reflects and expands the EU-28 digital economy and society index. Based on the sub-indexes of this index, a multidimensional classification of European countries was carried out. The main components method identifies the main factors that were used to identify their impact on the level of GDP in various clusters. The Statistica package is used for information processing and analysis. Results . This study examined the values of sub-indexes of the I-DESI index in five dimensions: communication, digital skills, citizens' use of the Internet, integration of business technologies, and digital public services. According to the hierarchical classification based on these sub-indexes, 2 groups of countries were identified. Using the k-means method, the features of each cluster are identified. Comparisons of cluster analysis results by sub-indexes were made based on data from 2016 and 2013. Using the main components method, five main factors were identified out of twenty indicators characterizing the I-DESI index and their influence on the level of GDP in various clusters was revealed. The analysis of twenty indicators of the I-DESI 2018 index, applied in the method of main components, by the directions of the index itself, the economy in the context of GDP and the social sphere (life of society) through the HDI (human development index) in various clusters was also carried out. Conclusion . According to the research, two groups of countries were identified by the level of digitalization. The first group in 2016 included twenty two countries with high indicators of digital development of the economy and society. All the countries of the first cluster are developed countries that have a significant share of services in their economy, as well as investments in high-tech products. The second cluster is represented by twenty three countries. This cluster is mainly represented by developing countries, which still have a large share of production in GDP. The level of GDP in the first cluster countries with a high I-DESI index was mainly influenced by factors that characterize fixed broadband and digital public services. Two groups of factors also influenced the GDP level of the second cluster countries. One group of factors combined variables that characterize new technologies in business, the other group – the use of the Internet by the population. The study of the development of the digital economy has allowed us to conclude that in general, the trend of rapid spread of modern technologies is developing around the world. This suggests that society in the context of the state and the individual needs to be mobile and ready to adopt new technologies in advance.