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Expertise 16. January 2025 Jan Büchel / Marc Scheufen / Barbara Engels Digitalisation Index 2024: Digitalisation of the economy in Germany

The Digitalisation Index 2024 shows that the German economy has become around 14 percent more digital in the last five years. However, despite this progress, key challenges remain: The East has not been able to escape its role as the digitalisation bottom performer in the past five years.

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Digitalisation of the economy in Germany
Expertise 16. January 2025 Jan Büchel / Marc Scheufen / Barbara Engels

Digitalisation Index 2024: Digitalisation of the economy in Germany

Digitalisation Index results in the project „Development and Measurement of the Digitalisation of the Economy in Germany”m Standort Deutschland“

Jan Büchel / Marc Scheufen / Barbara Engels German Economic Institute (IW) German Economic Institute (IW)

The Digitalisation Index 2024 shows that the German economy has become around 14 percent more digital in the last five years. However, despite this progress, key challenges remain: The East has not been able to escape its role as the digitalisation bottom performer in the past five years.

Rural areas are still lagging behind the cities. There are still clear differences in digitalisation within the industry groups, which cannot be attributed solely to differences in the digitalisation capability of products and business models, for example. The digitalisation challenges in Germany have not been resolved in the past five years – although five years is a small eternity compared to the speed of current technological progress. Nevertheless, it is remarkable that companies have become significantly more digital, especially from 2023 to 2024 – even though the German economy has had to endure severe crises.

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Digitalisation of the economy in Germany
Expertise 16. January 2025 Jan Büchel / Marc Scheufen / Barbara Engels

Digitalisation Index 2024: Digitalisation of the economy in Germany

Digitalisation Index results in the project „Development and Measurement of the Digitalisation of the Economy in Germany”m Standort Deutschland“

Jan Büchel / Marc Scheufen / Barbara Engels German Economic Institute (IW) German Economic Institute (IW)

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AI skills demand in the EU
Expertise 8. September 2026 Jan Büchel / Jan Engler / Armin Mertens

AI skills demand in the EU

More and more companies in Europe are using artificial intelligence (AI) technologies. In 2025, one in five companies in the EU with 10 employees or more used at least one major AI technology, up from 8% in 2023 (Eurostat, 2026a).

Jan Büchel / Jan Engler / Armin Mertens IW

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IW-Trends No. 2 15. July 2026 Jan Büchel / Jan Felix Engler / Nicolai Krüger*

AI Specialists in Public Administration – Needs and Options for Action

The use of AI in Germany’s public sector not only offers potential for efficiency gains but, in view of the sector’s shortage of skilled staff, is also urgently needed.

Jan Büchel / Jan Felix Engler / Nicolai Krüger* IW

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