Salvatore Capasso, Giovanni Canitano (a cura di)
Mediterranean Economies 2023
DOI: 10.1401/9788815411167/c6
Between 2017 and 2022, Malta’s aggregate DESI score grew slightly more than expected by the convergence curve, meaning it improved at a marginally higher pace than the score of the EU as a whole. A case in point is the situation of Portugal, which ranks 15th of the 27 EU Member States in the 2022 edition of the DESI, up one position from last year’s ranking. Portugal’s relative progress was generally slightly below that of its peers, so there is room for the country to accelerate its digitalization efforts. Indeed, it can be observed that despite an increase in its DESI overall score in the period 2017-2022, its position in comparison to the EU average worsened over time, shifting from +0.5 per cent in 2017 to –1.7 per cent in 2022. As for Italy, its position in the EU ranking improved by two points thanks to significant investments in digitalization which explains the highest variation among EuroMed nations between the period
{p. 195}2017-2022 in its overall score (21.1 per cent). Indeed, Italy is catching up and, looking at the progress of its DESI score over the past five years, it is advancing at a considerable pace. In recent years, digital issues have gained political traction notably with the establishment of a ministry responsible for digital affairs, the adoption of several key strategies and the launch of many policy measures. However, this huge effort was not enough to align the country with the EU average, as it is still way below, together with Greece, Croatia, Cyprus and Portugal. However, it is also worth noting that the relative gap reduced from –6.8 per cent in 2017 to –3.2 per cent in 2022. Cyprus also improved its position, climbing one step up from its 2011 ranking. Positively, the country’s relative progress, considering its starting point, is above the expected rate, indicating that it is converging to the EU average. As for Croatia, although its DESI score grew slightly more than that of the EU between 2017 and 2022, its position in the 27 EU Member States ranking slightly worsened. Finally, Greece maintained its position in the ranking, but it is the worst performer among the EuroMed countries in terms of positive variation of its DESI overall score and still below the EU average in 2022, with a gap that even increased compared to 2017.

4.2. The four DESI dimensions (and selected indicators)

A more complete understanding of the overall DSI scores reported in section 5.1 can be gained through comparative analysis among EuroMed countries of each of the four DESI dimensions across the same temporal frame (i.e., 2017-2020-2022).

4.2.1. The DESI sub-dimension of «Human capital»

Figure 2 shows the data relating to human capital, a dimension that summarises the values of a number of basic indicators and that, overall, measures the level and degree of diffusion of digital skills among the population of EuroMed countries. A striking feature is that variations registered during the three years appear to be quite contained although they prove positive over time for all countries. This would suggest that changes affecting this {p. 196}dimension are rather slow. As for specific numbers, all countries have values of this dimension between about 9 and 14. Malta (14.1) confirms its highest position, while Italy (9.1) occupies the last place in the EuroMed ranking. It is worth observing that Malta also witnessed the highest growth rate between the years 2020 and 2022, while the highest average increase was observed between 2017 and 2020, perhaps due to the onset of the pandemic, as in general it sustained the diffusion of digital skills among the population. As for the contribution of human capital to the convergence among EuroMed countries, it may be observed that the variability between countries has remained constant over time, a sign that this specific DESI dimension has not contributed to the convergence process between countries that was recorded in the DESI overall score.
Fig. 2. DESI sub-dimension «Human Capital».
Definition: weighted score of the DESI sub-dimension (0-100).
Source: authors’ elaboration on the Digital Economy and Social Index, 2022.
Source: authors’ elaboration on the Digital Economy and Social Index, 2022.
Figures 3 and 4 report the analysis for selected indicators, respectively related to the two subdimensions of human capital, i.e., the basic indicator of «at least basic digital skills» (as a measure of «internet user skills») and the basic indicators of «ICT specialists» and «enterprises providing ICT training» (as measures of «advanced skills and development»). As for digital skills, it is worth reporting that basic data used to build the DESI are obtained by the European Commission from a specific EU survey on ICT usage in households and by individuals. These skills are specifically related to the following four dimensions: information, communication, problem solving and software for content creation (as measured by the number of activities carried out during the previous three months). Figure 3 shows that Spain has the highest percentage of such individuals (64.2 per cent), followed by Croatia (63.4 per cent) and France (62 per cent). Slovenia (49.7) and Italy (45.6) are positioned at the bottom of the ranking. Importantly, although Malta is ranked fourth among EuroMed countries, it witnessed the most significant increase across the period 2017-2022 that accounts for almost twelve percentage points.
Although all countries (with the exception of Slovenia) have improved their position over time it can be noted that the best performing countries in 2022 are also those registering the highest positive variation and that the change is more marked from 2020 to 2022. This evidence could mean that the pandemic has pushed the population in these countries to become familiarised {p. 198}with digital technology and ICT use. The marked negative trend recorded in Slovenia from 2020 to 2022 is even more astonishing given that the indicator initially grew from 2017 to 2020. As for Italy, the indicator assumes a fluctuating trend over time, a signal that a clear long-term strategy is lacking.
Fig. 3. Human capital: the indicator «At least Basic Digital Skills».
Definition: individuals with ‘basic’ or ‘above basic’ digital skills in each of the following five dimensions: information, communication, problem solving, software for content creation and safety (percentage of individuals).
Source: authors’ elaboration on Eurostat (European Union survey on ICT usage in Households and by Individuals), 2022.
Source: authors’ elaboration on Eurostat (European Union survey on ICT usage in Households and by Individuals), 2022.
Finally, as regards variability, the situation has gone from being much more homogeneous in 2017 and below the European average for all Med countries, to a more heterogeneous situation in 2022, in which Spain, Croatia, France and Malta ranked above the EU mean.
Figure 4 reports the data relating to employed ICT specialists in the European Mediterranean countries, according to the ISCO-08 classification including jobs like ICT service managers, ICT professionals, ICT technicians, ICT installers and servicers. In general, the most striking feature is that all EuroMed countries considered employed this type of workforce in a very low percentage, ranging between 2 per cent and 5 per cent. Malta was the country with the largest number of ICT specialists in 2022 (4.9 per cent), while the country that employed the least was Greece (2.8 per cent). Despite the improvements recorded in all countries from 2017 to 2022, especially evident for Portugal and Cyprus while less marked for Italy and Croatia, it emerged that the average of the Med countries, during the various DESI surveys, has always been considerably below the EU average even though the gap has reduced over time. As for convergence among countries, the box plot clearly shows that in 2022 the heterogeneity among countries increased. Italy, Croatia and Greece are the most heavily penalised countries, while Portugal and Cyprus, as stated above, recorded the most significant variation.
As for investments made by firms in ICT training for their personnel, figure 5 shows interesting and, to some extent, counterintuitive evidence.
Except for Malta (recording an increasing trend over time) and Spain (witnessing a decreasing trend over time), all countries recorded first an increasing trend (from 2017 to 2020) and then a decreasing trend (from 2020 to 2022) in terms of ad hoc investments in ICT employee training. This evidence suggests that the COVID-19 pandemic outbreak drove firms in almost all EuroMed countries to provide their employees with more technological support and training to enhance their ICT knowled
{p. 200}ge and their digital capabilities so that they could cope with the abrupt shift toward remote working. However, as office-based or hybrid work is restored, there are likely to be fewer incentives (or resources) for firms to train their staff.