Beyond the digital divide: structural determinants of the digital government gap in the European Union

Abstract

Within the framework of Europe’s Digital Decade, digitalization has permeated all areas of decision-making. ICT are increasingly present in public services and represent a key policy for economic and social transition. However, not all countries in the European Union (EU) have progressed at the same pace, which has created a “digital government gap.” The study seeks to determine which factors can be considered structural to this phenomenon, and the impact it has on public administrations, private sector, economies, or societies in general. A cluster analysis has been conducted on the basis of the Digital Economy and Society Index (Eurostat 2017–2022), which focuses on the level of digitalization in countries, with the aim of grouping countries according to their level of digitalization. Subsequently, a fixed-effects panel data model has been developed to identify key variables and their impacts, using various socio-economic indicators. Based on the Digital Economy and Society Index (Eurostat 2017–2022), which focuses on the level of digitalization in countries. A cluster analysis is carried out to group countries according to their level of digitalization; and a fixed-effects panel data model is developed to identify key variables and their impacts, using various socio-economic indicators. The heterogeneity in digitalization across the EU has been confirmed. Several indicators have been identified as influential factors in the degree of digitalization, including GDP per capita, specialized human capital (STEM), the quality of the rule of law, educational attainment and the territory’s immigration rate. The analysis identifies a multi-speed Europe, where digitalization is progressing unevenly, with the formation of territorial blocks that translate geographical barriers to techno-digital sphere, while highlighting the emergence of “fast-trackers” like Spain and Malta.