Digital competitiveness gap between the US and EU member states in the 21st century

Abstract

PURPOSE: The aim of the article is to assess the gap between EU member states and the United States in terms of digital competitiveness of the ex-ante and the ex-post type in the 21st century.

DESIGN/METHODOLOGY/APPROACH: To assess the ex-ante digital competitiveness the ICT Development Index (IDI) was used, and the ex-post competitiveness was measured with the original Outcome Digital Competitiveness Index (ODCI). The study takes into account a broader approach to digital competitiveness than previously discussed in the literature and includes the ”outcome” component, regarding the implementation effects of ICT. A measure of this competitiveness type is also introduced.

FINDINGS: The conducted study provides evidence confirming the hypothesis that the digital competitiveness gap between the EU and the US is widening, especially in terms of ICT patent activity, ICT impact on new business and organisational models, intensity of high-tech trade and the importance of the ICT sector in value added creation.

PRACTICAL IMPLICATIONS: The results provides evidence to confirm the hypothesis that the digital competitiveness gap between the EU and the US is widening especially in its output dimension, related to the channels transforming the country's digital potential into economic results.

ORIGINALITY/VALUE: The study can be the source for the examination of the degree of EU internal differentiation both in the levels and dynamics of digital competitiveness. These issues, however, require an in-depth analysis that may be the subject of another study.