For the third time, the Federal Ministry for Economic Affairs and Climate Protection is publishing the Digitalisation Index to measure the level of digitalisation in the German economy. In contrast to the survey for 2021, which recorded a significant increase in digitalisation compared to the base year 2020, the Digitalisation Index 2022 has stagnated.
While the external conditions for digitalisation improved in 2021, such as the legal framework, the technical infrastructure and the availability of skilled workers with digitalisation skills, these conditions deteriorated in 2022 due to the war in Ukraine, the inflation and energy crisis and disrupted supply chains. Accordingly, the digitalisation of the economy is stagnating.
In terms of long-term development, the existing shortage of qualified specialists is particularly worrying, as it is significantly weakening the innovation and competitiveness of the German economy.
The fact that the digitalisation of the economy is stalling is particularly noticeable in the German innovation landscape. The number of start-ups with digital business models fell by more than 25% in 2022 compared to the previous year.
The optimistic outlook of the 2021 Digitalisation Index is therefore not confirmed. Accordingly, it is not yet possible to conclusively assess whether the coronavirus pandemic has led to a sustained surge in digitalisation in the German economy. However, in view of the cost increases and uncertainties for companies in the crisis year 2022, it is quite remarkable that digitalisation is not declining overall. Large companies and the ICT sector in particular are proving resilient here.
