Determination of Digital Density Efficiency by Data Envelopment Analysis: EU Member States

Abstract

This study aims to determine the digital intensity levels, which are an indicator of the digital transformation performance of the countries. In this direction, the digital intensity efficiency levels of the European Union member countries were calculated by data envelopment analysis. The input-oriented Charnes Cooper and Rhodes (CCR-O) Model has been used to determine the digital intensity of the countries. The input criteria of the DEA model were obtained from the digital skills data in The Digital Economy and Society Index-2021 (DESI), and the output criteria were obtained from the digital intensity data of the same index. Digital content creation communication and collaboration, online information and communication, information and data literacy, problem-solving, and safety skills are used as input criteria for digital skills. Very low, low, high, and very high data were used as output criteria of digital intensity. According to the findings, it was seen that Hungary, Spain, Slovakia, and Ireland are not at the full efficiency level. It has been determined which input variables should be directed to reach the full efficiency level of the countries that are not at the full efficiency level. In this direction, it can be said that although countries that are not at the full efficiency level have digital skills, their digital density is not high and these skills are not used enough.