Economic effects of digitization

Digitization is a basic and multipurpose technology. Its productive use is important for the competitiveness of the location. According to the empirical results of the study, a 1% improvement in digital competitiveness, as measured by the Digital Competitiveness Index, results in a 0.16% increase in GDP per capita. Standard international comparative index analyses show that Austria is well positioned, but not at the top. There is potential to catch up by a fifth to a quarter with the most digitized countries, the USA, Denmark, Sweden, Finland or the Netherlands. Catching up Austria with these most competitive countries would increase GDP per capita by around 3.5% according to the empirically identified macro effect. In 2022 prices, this corresponds to up to EUR 17.4 billion in added value per year. Cloud services are currently particularly relevant to competition. In 2022, differences in the use of cloud services alone will explain around two thirds of the variance in digital competitiveness.

"The productive use of digital technologies is a basis for competitiveness and for securing prosperity. There is potential to catch up in terms of highly specialized IT skills, basic skills in the population, the effective use of digital technologies, especially SMEs, and digital innovation capability. If Austria can catch up with the most competitive countries in terms of digitalization by 2027, this could, cumulatively over the years up to 2030, result in an additional GDP of around 100 billion euros," says Monika Köppl-Turyna, Director of EcoAustria.