The Digital Competitiveness of European Countries: A Multiple-Criteria Approach
Jelena J. Stankovic, Ivana Marjanovic, Sasa Drezgic, Zarko Popovic
Keywords:
digital competitiveness, CRITIC method, TOPSIS method, cluster analysis
Abstract:
High-quality digital infrastructure is the basis of almost every sector of a modern and innovative
economy and society. As a part of the overall competitiveness concept, digital competitiveness
is a multidimensional structure that encompasses various factors of the process of digital
transformation through the ability of learning and application of new technologies, technology
factors that enable digital transformation, and digital readiness factors that assess the preparedness
of an economy and citizens to assume digital transformation. The paper aims to propose a
methodology for measuring digital competitiveness using a composite index approach including
a variety of various indicators. To assess the digital competitiveness of European countries, a
multi-criteria analysis was applied in a two-stage procedure integrating CRITIC and TOPSIS
as weighting and aggregation methods. The sample includes thirty European countries and the
research is based on thirteen indicators provided in the database Eurostat Digital Economy
and Society. In addition, a ranking of sample countries according to digital competitiveness
is presented. Finally, a cluster analysis was conducted to examine relations between digital
competitiveness and several economic performances such as GDP pc, labour productivity and
employment rates. The results indicate that Nordic countries have achieved the highest digital
competitiveness, while most Eastern European countries still lag behind.
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10.7441/joc.2021.02.07
Stankovic, J. J., Marjanovic, I., Drezgic, S., & Popovic, Z. (2021). The Digital Competitiveness of
European Countries: A Multiple-Criteria Approach. Journal of Competitiveness, 13(2), 117–134. https://doi.org/10.7441/joc.2021.02.07
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