Digital Skills and Digital Transformation Performance in the EU-27: A DESI-Based Nonparametric and Panel Data Study

Beata Sofrankova (), Elena Sira, Jarmila Horvathova and Martina Mokrisova
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Beata Sofrankova: Department of Finance, Accounting and Mathematical Methods, Faculty of Management and Business, University of Prešov in Prešov, 080 01 Prešov, Slovakia
Elena Sira: Department of Economics and Economy, Faculty of Management and Business, University of Prešov in Prešov, 080 01 Prešov, Slovakia
Jarmila Horvathova: Department of Management, Faculty of Management and Business, University of Prešov in Prešov, 080 01 Prešov, Slovakia
Martina Mokrisova: Department of Management, Faculty of Management and Business, University of Prešov in Prešov, 080 01 Prešov, Slovakia

Economies, 2025, vol. 13, issue 11, 1-20

Abstract: Digital skills represent a key dimension of digital transformation, shaping the innovation potential, competitiveness, and long-term sustainability of the European economy. The aim of this paper is to compare the development of digital skills in EU-27 countries from 2018 to 2024 and identify the strengths and weaknesses within the European context. The analysis is based on secondary data from the Digital Economy and Society Index (DESI). From the total of 36 indicators included in DESI, 12 variables were selected, with an emphasis on 3 core digital-skills metrics: Internet use, ICT specialists, and ICT graduates. To assess their interrelationships and linkages with overall digital transformation performance, non-parametric correlation analyses (Kendall’s Tau and Spearman’s rank correlation) were applied. Furthermore, across-year nonparametric tests (Friedman ANOVA with Kendall’s coefficient of concordance, W) were used to evaluate year-to-year differences and the stability of country rankings over 2018–2024. The empirical results confirmed that higher levels of digital skills are associated with stronger digital transformation performance among EU member states, while significant cross-country disparities persist. Germany and the Nordic economies (Finland, Sweden, and Denmark) achieved the best results, while Southern and Eastern European countries such as Bulgaria, Portugal, and Greece lagged behind. These findings highlight the strategic role of digital education, ICT specialization, and lifelong learning initiatives in promoting sustainable digital transformation and competitiveness across Europe. In addition, panel regression analysis confirmed that digital infrastructure, particularly FTTP coverage and Very High Capacity Networks, is a key driver of digital skills development, whereas the effects of business digitalization appear indirect or delayed. The outcomes provide relevant implications for broadband deployment and user-centric digital public services to support the objectives of the EU Digital Decade 2030. The study contributes to a deeper understanding of the determinants of digital skills and digital transformation performance, providing evidence-based guidance for targeted digital policies aimed at reducing the digital divide and strengthening digital transformation performance within the European Union.

Keywords: digital skills; digital transformation performance; digital economy and society index (DESI); digital infrastructure; ICT human capital; panel data analysis; nonparametric methods; EU-27 (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2025
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