Digitalisation Index 2022: Digitalisation of the Economy in Germany

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.