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Europe’s Digital Gap Is About Basic Literacy, Not Just Elite Talent

European policymakers obsessed with artificial intelligence and semiconductor manufacturing are overlooking a critical bottleneck: the fundamental digital proficiency of their own citizens. New research suggests that national digital readiness depends more on the basic capabilities of the general population than on the sheer number of highly trained technology graduates.

Europe’s Digital Gap Is About Basic Literacy, Not Just Elite Talent

A study published in Economies by Beata Sofrankova, Maria Matijova, and Dagmara Ratnayake Kascakova analyzed 27 European countries between 2018 and 2024 to determine what truly drives digital transformation. While common policy focuses on producing more programmers and engineers, the findings indicate that a one-percentage-point increase in the share of people with at least basic digital skills correlates with a 0.165-point rise in the Network Readiness Index. This relationship remains more consistent than the impact of ICT specialists or university graduates.

This shift in focus challenges the assumption that elite technical talent acts as a standalone engine for economic modernization. The researchers argue that advanced experts only provide value when the broader workforce and public institutions can effectively absorb new technologies. Without a digitally literate population, companies struggle to digitize operations, and governments risk creating online services that remain inaccessible to the average citizen. Ultimately, the study suggests that universal digital competence—treated as a core literacy—is a necessary foundation for any country hoping to turn infrastructure investment into actual productivity gains.

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