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Business Digitisation Index

The HSE Institute for Statistical Studies and Economics of Knowledge designed the Business Digitisation Index which measures the rate of entrepreneurial sector organisations’ adapting to digital transformation in Russia, European countries, the Republic of Korea, Turkey, and Japan. The index is calculated on the basis of the following five indicators: broadband internet access, use of cloud-based services, RFID technology, and ERP systems, and participation in e-commerce.

Digital technologies have penetrated all areas of life, changing economic and organisational processes and the ways suppliers and consumers of goods and services communicate with each other. To obtain an integral measure of digital technologies’ use in the entrepreneurial sector, the HSE Institute for Statistical Studies and Economics of Knowledge designed the Business Digitisation Index which describes how quickly companies adapt to digital transformation, how actively they use broadband internet access, cloud-based services, RFID technology, and ERP systems, and the level of their participation in e-commerce. The index is calculated for Russia, European countries, the Republic of Korea, Turkey, and Japan.

The leader among the above countries is Finland, with the score of 50 (Fig. 1). Next come Belgium (47), Denmark (46), and the Republic of Korea (45). Russia (28 points) is on a par with such Central and Eastern European countries as Bulgaria, Hungary, Poland, and Romania.

Analysis of use of specific technologies taken into account in calculation of the index in Russia reveals that 82% of companies have broadband internet access, 23% use cloud services, 19% ERP systems, 12% participate in e-commerce, and 6% use RFID technology (Table 1).

The gap between the Russian and relevant Finnish figures (the latter country has the highest value of the index) varies between 9 and 43%. The minimal deviation was found in areas such as e-commerce (9%) and use of RFID technology (17), while the maximum was noted for use of cloud services (43%).

Table 1. Companies’ use of digital technologies, by country: 2017 (or the nearest year for which data is available)
(share of companies who use digital technologies in the total number of entrepreneurial organisations, %)

 

Broadband internet access

Cloud-based services

RFID technology

ERP systems

e-commerce in various formats (web sites, extranet, and EDI systems)

Russia

82

23

6

19

12

Austria

98

21

19

40

17

Belgium

98

40

21

54

24

Bulgaria

89

8

18

23

7

UK

95

35

8

19

20

Hungary

91

16

7

14

13

Germany

95

16

16

38

24

Greece

85

11

7

37

11

Denmark

100

51

9

40

29

Ireland

96

36

11

28

30

Spain

98

24

15

46

20

Italy

96

22

13

37

8

Cyprus

96

22

14

35

12

Latvia

99

12

9

25

11

Lithuania

100

23

10

47

22

Luxembourg

97

19

18

41

8

Malta

95

28

17

30

17

Norway

94

48

10

30

29

Netherlands

100

35

18

48

16

Poland

95

10

9

26

10

Portugal

98

23

11

40

18

Republic of Korea

98

42

28

11

Romania

82

11

7

17

8

Slovakia

95

22

18

31

15

Slovenia

99

22

15

30

18

Turkey

95

10

...

14

11

Finland

100

66

23

39

21

France

99

17

11

38

17

Croatia

95

31

14

26

18

Czech Republic

98

22

8

28

24

Sweden

97

48

12

31

29

Estonia

95

23

12

28

16

Japan

91

47

5

...

24

 

 91–100  76–90 61–75 46–60 31–45 5–30 

In foreign countries, the lowest demand for abovementioned technologies was noted for e-commerce (on average just 17% of companies used it), and RFID technology (14%). The highest differentiation was found for use of RFID technology and cloud services (8.4 and 8.3 times, respectively). Interestingly, different countries have the highest values of each of these indicators. E.g. Ireland is the leader in e-commerce (30%); RFID technology is most actively used in the Republic of Korea (42%); ERP systems – in Belgium (54%); and cloud services – in Finland (66% of companies). 100% of companies in Denmark, Lithuania, the Netherlands, and Finland have broadband internet access.

Sources:

HSE (2018) Digital Economy Indicators: 2018. Statistical databook. M: HSE.

HSE (2019) Digital Economy. Brief databook M: HSE.

HSE ISSEK calculations based on Rosstat data, conducted in the scope of the project 'Development of Methodologies, Information and Analytical Materials for Digital Economy Indicators' carried out in the framework of the Thematic Plan for HSE Research.

By Marina Kevesh and Daria Filatova


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