Digital transformation of human capital in the EU according to the DESI index

Abstract

Since 2014, the Digital Economy and Society Index (DESI) has been one of the key tools for monitoring and measuring the digital development of the European economy and society. In 2021, the DESI index's core indicators were aligned with the objectives of the 2030 Digital Agenda and had four core dimensions: human capital, connectivity, integration of digital technology and digital public services. Continuing our previous research, we tried to determine whether convergence between the Member States could be detected in human capital digital skills and competencies development. The σ-convergence was applied to estimate the reduction over time in the differences between the Member States. The β-convergence was used to calculate the rate of catching up to the initial level of development. The σ- and β-convergence was not confirmed. A cluster analysis was carried out - assuming a non-homogeneous development - which revealed that the differences in the digital development of human capital in the Member States are persistent and that the rate of development is minimal over the period considered. We reviewed DESI's human capital individual indicators to identify critical areas that need to be addressed in the future to ensure that digital development is as broad-based as possible. After a meticulous analysis of the DESI overall index and its core dimensions, we conclude that in areas where convergence is not achieved, the EU's targets will not be met or will be in backlog in 2030. In education, training and retraining, in this case, digital skills development and coherent action are essential.