Regional Evolution of the ICT Sector in the European Union: Insights and Trends.

EASTERN Europe; WESTERN Europe

The development of the digital sector is seen as essential for the future of the European Union not only by the European authorities but also by non-governmental organizations (NGOs), national political parties, representatives of the business sector, social activists, or regular citizens. This approach is reflected, among others, in several details of the NextGeneration EU recovery instrument meant to create economic and social stability in the member states after the coronavirus pandemic, which represented one of the grimmest phases in the recent history of the continent. The funds directed towards enhancing the process of digitalization should reduce the development gap that exists at a regional level in the EU. But how profound is this gap, and what are the factors that generate and perpetuate it? The present study shapes answers to these questions by focusing on four regions that include all 27 member countries in the EU: Western Europe, Northern Europe, Eastern Europe, and Southern Europe. The analyzed period is mainly 2018-2022, covering the last two years before the COVID-19 outbreak, the pandemic, and its aftermath. We take into account elements like internet accessibility, the share of Information and Communication Technology (ICT) in the Gross Domestic Product (GDP), other economic particularities, the development of e-commerce, or the level of digital literacy. Our conclusions suggest that the importance of historical factors is at times diluted by strategic decisions implemented by governments. The evolution of the ICT sector is seen in numerous countries as a key element in establishing much-needed political, economic, and social resilience. [ABSTRACT FROM AUTHOR]

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