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Jan Büchel / Barbara Engels Expertise 14. December 2022 Digitalisation Index 2022: Digitalisation of the Economy in Germany

The economy in Germany becomes only slightly more digital in 2022 compared to 2021: The Digitalisation Index rises from 107.9 to 108.9 points. Following the sharp rise in 2021, digitalisation can be said to stagnate in 2022.

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Digitalisation of the Economy in Germany
Jan Büchel / Barbara Engels Expertise 14. December 2022

Digitalisation Index 2022: Digitalisation of the Economy in Germany

Summary of the Digitalisation Index results in the project “Development and Measurement of the Digitalisation of the Economy in Germany”.

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German Economic Institute (IW) German Economic Institute (IW)

The economy in Germany becomes only slightly more digital in 2022 compared to 2021: The Digitalisation Index rises from 107.9 to 108.9 points. Following the sharp rise in 2021, digitalisation can be said to stagnate in 2022.

Unlike in 2021, no clear driver of digitalisation can be identified in 2022. The internal index categories, including business models and processes, increase by an average of only 0.9 points. The external categories, which also include human capital and technical infrastructure, lose 0.3 points on average.

The strongest absolute growth compared to 2021 is recorded by the external category of society. It shows how digitally savvy the population is and to what extent it uses digital products and services. On the demand side, society is a key driver of digital progress.

As in the previous year, large companies, the ICT sector, and the federal state group South (Baden-Württemberg and Bavaria) are digitalisation pioneers. At the index level of region types, core cities replace agglomerations at the top.

As in 2021, small companies, the industry group of other production industries and low-density rural areas have the greatest need to catch up. The federal state group East (Berlin, Brandenburg, Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt and Thuringia), which was ranked last in 2021, can catch up with the other federal state groups. Now the federal state group North (Bremen, Hamburg, Lower Saxony, Schleswig-Holstein) has the greatest need to catch up.

The digitalisation momentum of the Covid19 pandemic has not yet led to a comprehensive and sustainable digitalisation push in the German economy. However, due to the confluence of various crises, including the energy crisis, supply chain difficulties and price developments, and the thus continuing exceptional situation, it cannot be ruled out that such a boost will still be triggered. For this to happen, the strong cost pressure and uncertainties that companies are currently facing would have to ease. Companies will then have more scope for investment to drive forward more far-reaching digitalisation projects.

After all, it is remarkable that the economy does not event take steps backward in digitalisation under the impact of this exceptional situation. It remains all the more important to improve the framework conditions for digitalisation in Germany.

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Digitalisation of the Economy in Germany
Jan Büchel / Barbara Engels Expertise 14. December 2022

Digitalisation Index 2022: Digitalisation of the Economy in Germany

Summary of the Digitalisation Index results in the project “Development and Measurement of the Digitalisation of the Economy in Germany”.

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German Economic Institute (IW) German Economic Institute (IW)

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Do Differences in Data Management Help to Explain Persistent Productivity Differences Between Western and Eastern Germany?
Jan Büchel / Klaus-Heiner Röhl IW-Trends No. 4 28. December 2022

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Since the mid-1990s the economies of the five states of ex-communist Eastern Germany have been converging only slowly with the rest of the Republic, though the process has not come to a complete halt.

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Jan Büchel / Barbara Engels IW-Kurzbericht No. 96 8. December 2022

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