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Jan Büchel / Dennis Bakalis / Marc Scheufen Expertise 27. December 2023 Digitalisation Index 2023: Digitalisation of the economy in Germany

The digitalisation of the economy in Germany continues to stagnate in 2023: the digitalisation index score is 108.6 points in 2023 compared to 110.5 points in 2022. After the sharp rise in 2021, the development of digitalisation since then can be described as more of a lateral or sideways movement.

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Digitalisation of the economy in Germany
Jan Büchel / Dennis Bakalis / Marc Scheufen Expertise 27. December 2023

Digitalisation Index 2023: 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”.

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

The digitalisation of the economy in Germany continues to stagnate in 2023: the digitalisation index score is 108.6 points in 2023 compared to 110.5 points in 2022. After the sharp rise in 2021, the development of digitalisation since then can be described as more of a lateral or sideways movement.

As in the previous year, large companies, the ICT sector, the federal state group South (Baden-Württemberg and Bavaria) and urban areas are by far the pioneers of digitalisation. As in 2022, small companies and the industry group of construction, utilities and waste management have the greatest need to catch up.
However, the industry groups, company size classes and region types are converging as a whole and the differences in digitalisation are narrowing. The digitalisation of the economy has therefore become more homogeneous.

The economy continues to be affected by inflation, supply chain difficulties, the energy crisis and ongoing uncertainties. In the current crisis, however, increased digitalisation is not an immediate tool for many companies to cope with the current crises or to mitigate their negative effects in the short term, as was the case during the Covid-19 pandemic.

Only through a combination of digitalisation efforts within companies and external framework conditions the digitalisation of the economy can progress more rapidly. Therefore, it remains crucial to improve the framework conditions in Germany such that they do not become a bottleneck but rather facilitate digitalisation.

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Expertise
Digitalisation of the economy in Germany
Jan Büchel / Dennis Bakalis / Marc Scheufen Expertise 27. December 2023

Digitalisation Index 2023: 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”.

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

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