ADVANTAGES OF BEING DIGITAL

With the digital revolution well underway, Europe needs to speed up the introduction of adequate infrastructure, skills and frameworks in order to be able to benefit from fast-paced technology development, or it may lose its head start on the global market. Most EU member states are currently trailing the U.S. when it comes to digitalisation, as indicated by the European Investment Bank’s Digitalisation in Europe 2020-2021 report

Although the pandemic accelerated the digitalisation process considerably (63% of EU firms had implemented at least one digital technology in 2021), there are significant digital gaps that could impede the transformation of businesses in all sectors. This could impact the European Union’s micro and smaller firms, with fewer than 50 employees, in particular. They are already lagging behind in the adopting of digital technologies, mostly due to a lack of adequate skills and access to financing. Compared to 75% of large companies that are already digital, only 40% of micro companies fall into this category.

The report shows that countries (such as Belgium, Finland, Denmark and the Netherlands) that are the highest-ranked according to the Digital Transformation Enabler’s Index are also EU leaders when it comes to digitalisation, managing to outperform U.S. companies in 2020. The index monitors the extent to which national industries integrate new digital technologies and foster the start-up and innovation culture.

TRADITIONAL INDUSTRIES NEED TO

SCALE UP THEIR DIGITAL GOALS

This digital divide is also present at the sector level. Traditional sectors, such as construction, manufacturing, transportation and education, are technologically less advanced compared to ICT and advanced manufacturing players (such as automotive, electronics, life sciences, drug manufacturers and mechatronics). Going further into typical digital profiles, traditional sectors can be classified as “digital adopters”. These are usually older companies that were established long before the digital age, are still in the early phases of digital adoption and tend to use well-established technologies, such as those regulating customer relationship management. On the other hand, “digital natives” are companies established on