4. Conclusions

Considering the analysis of the previous results, a number of conclusions is raised.

Consolidation and progress towards convergence with the digital leaders

The Basque Country reaches and consolidates an advanced fifth position in the digitalisation of its economy and society in the environment of the European Union measured through the DESI index, in line with what was observed in 2017 and 2018. The Basque Country is placed one step back behind the group of digital leaders, the Nordic countries, towards which the Basque Country converges with increasing speed and at a certain distance from the next country, the United Kingdom. To overcome this step it will be necessary to improve in several of the indicators for which the opportunities to grow are considerable.

This fifth position is based on very good connectivity capabilities, advanced digital public services and a remarkable integration of digital technology in companies. On the other hand, there is a decrease in the level of human capital, as is the case in the EU-28 as a whole. The use of digital services by citizens continues to be the least advanced aspect and, despite improving, remains below the European average.

Likewise, the participation of women in the digitisation of the Basque Country is moderate, according to the WiD index. As per this indicator, the Basque Country occupies an eighth position in the EU-28, ahead of a group of countries among which are the Nordic ones (Sweden, Finland, Denmark and Holland) in addition to Luxembourg, the United Kingdom and Estonia, which in the DESI are ranked behind the Basque Country. This index, which began to be monitored by the European Commission in 2018, seeks to challenge gender stereotypes, promote digital skills and education, as well as encourage female entrepreneurship.

The reading of both indices (DESI and WiD) in an integrated way shows that the digitalisation of the Basque economy and society is progressing favourably, although it is true that the participation of women in the digital sphere is slightly below the society as a whole, so there is growth potential.

Positive evolution of dimensions, sub-dimensions and indicators between 2018 and 2019

During the last year, the Basque Country increases its DESI index by 5.41%. This improvement in performance takes place at all levels. First, there are substantial uprises in four of the five dimensions (connectivity (8.45%), digital public services (7.31%), Internet use (6.12%) and business integration of digital technology (5.74%)), which is reflected, for the most part, into progress in the respective upgradings of the Basque Country. On the other hand, it goes backwards in relation to human capital (-0.17%) in the same way as the European Union, probably as a result of the methodological change that aims to adapt this dimension to the challenge assumed by the European institutions around the skills and qualifications of the Digital Single Market.

Similarly, at the sub-dimension level, out of the total of fourteen, there is improvement in eleven of them, with advances well above the setbacks in those where it occurs. These sub-dimensions could be grouped around four groups: advanced in progress, sustained leaders, advanced in retreat and laggards.

Regarding the individual indicators, the pattern is similar: twenty-seven out of forty-three improve, eight remain constant and only eight go down. All of them can be classified into different groups: (i) “advanced in progress”; those that consolidate their leading or advanced positions (take-up of fixed and fast broadband, mobile broadband coverage, social media …), (ii) “advanced in retreat”; those who, even occupying prominent or middle positions, fall back in their relative positions (digital public services to companies, use of cloud technologies, fast and ultra-fast broadband coverage, big data …), (iii) “potential”; located in the middle zone, they maintain or improve throughout the period (completion of online services, e-government users …) and, in the lower area, a dual behaviour is observed between (iv) “lagging backwards” ; those with low positions that fall back (female ICT specialists, open data, SMEs that sell online, online sales ...) and (v) "lagging in recovery"; those who have low positions but improve (volume of e-commerce including cross-border, ICT specialists, news ...).

Progress of the DESI index and the dimensions that support it throughout the 2017-2019 period

From a broader perspective, in the three years for which DESI is available in the Basque Country, its value has been increasing continuously, with a weighted average growth rate (CAGR) of 4.41%, highlighting its acceleration in the last year.

Over the entire period, significant weighted average growths take place in three dimensions: 6.72% in connectivity, 4.34% in Internet use and 3.89% in digital public services, having thus accelerated its improvement process. In human capital there is an advance in the sense that, from a 0.62% decline in 2018, it goes to 0.17% in 2017. Finally, the improvement in digital technology integration is decelerated (from growing 10.34% in 2018 to 5.34% in 2019), but even so, CAGR growth is 8.35% in two years.

During the entire period the results are improved in eleven of the fourteen sub-dimensions, retreating in two others and remaining in one. These can be organized into four groups: leaders, unstable advanced, stable lags and backward lags.

Likewise, thirty-three of the individual indicators grow or remain, while ten have a negative evolution. Based on the same previous classification of indicators, the groups would be the following: (i) “advanced in progress”; The Basque Country occupies a leading or very advanced position that improves or is maintained throughout the period (mobile broadband coverage, fixed and fast broadband take-up, digital public services for companies, online courses, big data ...), (ii) “advanced in retreat”; those in which, despite being in a correct position, the Basque Country has been surpassed by other countries (business use of cloud technologies, coverage and take-up of ultra-fast broadband ...), (iii) linked to these two, the group of “potential”; they experience progress or maintenance of position but continue to find themselves in intermediate positions (fixed broadband coverage, completion of digital public services, female ICTspecialists, people who have never used the Internet ...) and, finally, in relation to the indicators with poorer results, there is a duality between (iv) the "lagging backwards"; those that not only do not advance, but even regress (open data, SMEs that make electronic sales, online purchases ...), and (v) "lagging in recovery"; with a low position in the ranking that does improve (online banking, ICT, specialists, turnover in electronic commerce, online sales ...).

Relative improvement vs advance in the ranking

As was observed in 2018, it is found that incremental improvements in dimensions do not necessarily ensure an improvement in annual positions. Thus, it is observed that with growths below 3%, positions fall back, between 3% and 6% the position is maintained, and only from that percentage, progress is made in the classification of the dimensions. Likewise, with the same percentage increase, in 2019 there are greater advances in positions, which contributes to the evolution in this direction.

Looking after the indicators for a more balanced digital growth

In a detailed analysis of the evolution of the indicators, it is found that the subset of indicators where the Basque Country obtains good results is larger than the core of indicators with the worst performance.

There is a solid group of “advanced in progress” indicators that during the last year maintain the same trend as in the period, so they reinforce their situation (online courses, social media, mobile broadband coverage ...). These are twelve indicators and, in the last year, another three added which, from the perspective of the whole period, are part of the group of “advanced in retreat” (online consultations or voting, at least level basic digital skills and pre-filled forms). Conversely, in the last year two indicators that would be “advanced” throughout the period pass to this group “in retreat” (digital public services for companies and big data).

Of the fourth group of “lagging in recovery” indicators for the entire period (broadband price index, online banking, ICT specialists, electronic business turnover, cross-border electronic sales and online sales), only online sales has passed, in the last year, to a “lagging backwards” behaviour. In the shift towards the other direction, that is, from “lagging in retreat” during the period to “lagging in recovery” in the last year, the online purchases, news, social networks and at least basic software skills stand out.

The indicators in which the Basque Country is positioned as a leader must continue their evolution so that progress remains continuous. Among those who improve, the impact of digital public services for companies or social media stands out. In the same way, it could be interesting to influence in the potential indicators to “convert them” into advanced ones and, thus, new pillars for a good overall result of the index. This would be the case of above basic digital skills, the completion of digital public services, professional social networks or non-Internet users.

In addition, in order to strengthen indicators, clearly the open data and SMEs electronic sales deserve special attention, and also online purchases or at least basic software skills, as all of them are at low levels both in the full period and in the last year. Likewise, it is advisable to promote progress of those lagging indicators that show signs of recovery, such as online sales or volume of e-commerce business.

Progress in the participation of women in the digital economy and society is modest

In the WiD index use of Internet and specialist skills and employment, the Basque Country is above the European average, while in the general skills for the Internet user, female Basque citizens are below their European counterparts.

During the last year, both in the WiD index and the dimensions the increases in relation to 2018 are slight, with nearly no progress in the position that the Basque Country occupies in relation to the EU-28 countries.

In view of the evolution of the WiD index since 2018, it can be observed that the participation of women in the digital economy of the Basque Country is unequal between the three dimensions of the index: it is based mainly on a correct level of advanced skills and in an intermediate use of Internet services, while Internet users basic skills are improvable. Harmonizing these three pillars could result in a more balanced female participation in the digital transition.

By dimensions, regarding the use of the Internet, the Basque Country occupies an eighth position, after progressing 3.38%, maintaining the position of 2018. On the other hand, in the general women skills for Internet use, the Basque Country is located in the eighteenth position, slightly below the European average. Finally, in the dimension of specialist skills and employment, women of the Basque Country are in seventh place, with a high relevance of STEM specialisation of women in relation to other professions.

Integrating the perspective of women in digitalisation will contribute to the reduction of digital gender inequality

When analysing the relationship between both indicators (DESI and WiD), in order to improve the performance of the Basque society and economy as a whole, it is necessary to improve the participation of women in areas such as Internet use (professional social networks, online consultations and voting, in addition to increasing the online courses). This can contribute to the improvement of this dimension for the whole of the Basque society and translate it into a better result of the DESI index. In addition, although the gender gap in the Internet access is significantly reduced, the value for women is still quite poor.

From a comparative analysis of gender, in relation to the use of the Internet, in those indicators where women have better performance (use of the Internet, e-government and online banking), in the Basque Country the inequality between women and men has been narrowing.

Also, in those areas where the degree of women is lower (professional social networks, people who never used the Internet and online courses), inequality in the Basque Country is reduced faster than in Spain and the rest of Europe. On the other hand, female participation in voting or consultation processes, not only is not reduced, but it increases.

1. The new indicator “5G readiness” has not been taken into account in the temporal analysis.