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The diffusion of digital skills across EU regions:structural drivers and polarization dynamics

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  • Serenella Caravella
  • Valeria Cirillo
  • Francesco Crespi
  • Dario Guarascio
  • Mirko Menghini

Abstract

The digital transformation is an important driver of long-run productivity growth and, as such, it has the potential to promote a more inclusive and sustainable growth. However, digital capabilities, crucial to develop and govern new digital technologies, are unevenly distributed across European regions increasing the risk of divergence and polarization. By taking advantage of a set of original indicators capturing the level of digital skills in the regional workforce, this work analyzes the factors shaping the process of digital skill accumulation in the EU over the period 2011-2018. Relying on transition probability matrices and dynamic random effects probit models, we provide evidence of a strong and persistent regional polarization in the adoption and deployment of digital skills. Further, we investigate whether European Funds (European Regional Development Fund, Cohesion Funds, and European Social Funds) are capable to shape the digitalization process and to favor regional convergence

Suggested Citation

  • Serenella Caravella & Valeria Cirillo & Francesco Crespi & Dario Guarascio & Mirko Menghini, 2022. "The diffusion of digital skills across EU regions:structural drivers and polarization dynamics," Working Papers in Public Economics 227, Department of Economics and Law, Sapienza University of Roma.
    • Handle: RePEc:sap:wpaper:wp227
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    1. Adina-Maria Vodă & Mihai Ciobotea & Doina Badea & Monica Roman & Marian Stan, 2025. "The Interactions Between Digitalization, Innovation and Employment in European Companies: Insights from a Latent Class Analysis," Economies, MDPI, vol. 13(4), pages 1-19, April.
    2. Alon, Ilan & Bretas, Vanessa P.G. & Galetti, Jefferson R.B. & Götz, Marta & Jankowska, Barbara, 2025. "Determinants of human-machine interaction technology usage: An automated machine learning approach," Technovation, Elsevier, vol. 143(C).
    3. Guarascio, Dario & Reljic, Jelena & Stöllinger, Roman, 2025. "Diverging paths: AI exposure and employment across European regions," Structural Change and Economic Dynamics, Elsevier, vol. 73(C), pages 11-24.

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    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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