How to evaluate the digital economy scale and potential?

Abstract

Technological progress is synonymous with current and past changes. In the past these changes led to increased efficiency of production. Driving forces behind today's technological progress are digital technologies. Emergence of digital businesses significantly contributes to a new type of economy, which acquires the adjective digital. Building on the experience gained from the technological advances of past centuries, digital technologies, which make the digital economy by the mass use of them, are and will be an important factor influencing economic growth. Therefore, the aim of this article is to propose the measure of the scale and potential of digital economy. Measurements are realized in the form of composite indicator designed for the policymakers that deal with the creation of strategies for further growth and the direction of national economies. This composite indicator consists of individual indicators related to tree areas - economy, labour and skills, that can be used to determine the scale and the potential of the digital economy. The scale of the digital economy varies across the examined countries. An interesting finding is the fact that the scale of the digital economy is not conditioned by the geographical or economic scale of the state.