Digital readiness across the European Union: A multidimensional empirical assessment of structural determinants, intra-regional disparities, and strategic implications in the era of Industry 5.0
Digital readiness across the European Union: A multidimensional empirical assessment of structural determinants, intra-regional disparities, and strategic implications in the era of Industry 5.0

Summary/Abstract: Research background: Digital transformation across the European Union (EU) has becomea critical driver of economic competitiveness and societal development. However, there arestill notable differences in member states’ infrastructure, governance, and level of digitalpreparedness. Interest in setting the primary factors that determine digital maturity and un-derstanding the structural disparities in the EU’s digital landscape is developing as a result ofIndustry 5.0, which places a high priority on human-centricity, sustainability, and resilience.Purpose of the article: The objective of this article is to evaluate the digital preparedness ofEU member states by using the most recent Network Readiness Index (NRI) data for 2024. Itaims to determine the factors that have the most significant impact on the overall digital per-formance, evaluate the disparities between countries in the quartiles of the NRI rankings, andvisualize the current status of digital transformation throughout the EU. This research furthercontextualizes the findings within the shift from Industry 4.0 to Industry 5.0.Methods: The study applies a combination of multivariate and inferential statistical tech-niques. A segmentation map is used to visually group countries by digital performance.Stacked bar graphs illustrate the importance of specific NRI components to overall scores. Anindependent sample t-test is performed to assess significant differences between high-performing and moderately performing countries. A regression study determines the primarypredictors of overall digital readiness.Findings & value added: The study indicates significant variability in the structure and de-terminants of digital readiness among EU nations. Research and development (R&D) invest-ment, household Internet access, and GDP per capita in purchasing power standards (PPS) areconsidered the most reliable indicators of digital success. Statistically significant differenceswere established between the first and second quartiles across various parameters of the NRI.This study improves the literature by delivering a thorough empirical evaluation of the 2024NRI data and presenting practical recommendations for policymakers aiming to promote fairand sustainable digital transformation in accordance with Industry 5.0 principles.

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