Digital Economy and Society Index

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1 Digital Economy and Society Index Country Profile has an overall 3 of 0.53 and s 9 th out of the 28 Member States. Relative to last year, improved its s in most DESI dimensions. is 6 th among countries on Connectivity, (although there was no progress in harmonisation of spectrum, where is an underperformer) and 6 th on Human Capital (93% of citizens are internet users and 82% have basic digital skills; however, 58.5% of businesses looking for ICT specialists reported problems in finding them.) The Use of Internet continued to grow. On the Integration of Digital Technology the country dropped six positions in ing. In Digital Public Services, has shown some improvement in egovernment use as well as in the supply of egovernment services. s s place it among medium-performance 4 countries. DESI DESI The Digital Economy and Society Index (DESI) is a composite index developed by the European Commission (DG CNECT) to assess the development of countries towards a digital economy and society. It aggregates a set of relevant indicators structured around 5 dimensions: Connectivity, Human Capital, Use of Internet, Integration of Digital Technology and Digital Public Services. For more information about the DESI please refer to 2 The DESI 2015 is constructed from indicators referring mostly to the calendar year 2014 (except when data is not available for that calendar year, in which case the latest prior data was used). 3 DESI s range from 0 to 1, the higher the the better the country performance. 4 In the DESI 2015, the medium-performance cluster of countries comprises Austria, Belgium, Estonia, France, Germany, Ireland, Lithuania,, Malta, Portugal, Spain and the United Kingdom

2 1 Connectivity 1 Connectivity DESI DESI Connectivity along with Human Capital and Use of Internet are the DESI 2015 dimensions where performs best. With an overall Connectivity of 0.7, the country s 6 th among countries. However, there was no progress in harmonisation of spectrum, a category where is an underperformer. 1a1 Fixed BB Coverage % households 1a2 Fixed BB Take-up % households 1b1 Mobile BB Take-up Subscribers per 100 people 1b2 Spectrum % of the target for spectrum to be harmonised at level 1c1 NGA Coverage % households, out of all households 1c2 Subscriptions to Fast BB % of subscriptions >= 30Mbps, out of fixed BB subscriptions 1d1 Fixed BB Price % individual gross income spent for the cheapest standalone Fixed Broadband subscription (lower values are better) Value value value 4 100% 3 97% 100% 91% % 94% 36% 1 69% % 5 94% 12 26% 9 70% % 5 68% 11 26% n.a. - n.a % Luxemburg has completed broadband coverage and a fast broadband connection (at least 30 Mbps) is available to 94% of households. Take up is strong, also for the faster connections. however needs to improve harmonising the relevant bands of spectrum for broadband and 2014 figures are not comparable due to changes in methodology. DESI 2015 Country Profile Page 2 of 6

3 2 Human Capital 2 Human Capital DESI DESI With a Human Capital of 0.65, maintained its 6 th place among countries with a slightly better performance than in the previous year (0.64). The same holds true for all sub-dimensions including the share of internet users in the population and the share of those having basic digital skills which are the highest in the whole. 2a1 Internet Users % individuals (aged 16-74) 2a2 Basic Digital Skills % individuals (aged 16-74) 2b1 ICT Specialists % employed individuals 2b2 STEM Graduates Graduates in STEM per 1000 individuals (aged 20 to 29) value value value 1 93% 1 75% 93% 82% 4% % 5 4% % 5 2.8% The transmission of technology into new ideas and products also hinges on the availability of a vast pool of aptly skilled workers. Despite widespread basic digital skills, there is a shortage of qualified ICT experts in : In 2014, 58.5% of enterprises which recruited or tried to recruit staff for jobs requiring ICT specialist skills reported problems in filling these positions, up from 52.8% in This is the second-highest figure in the. This problem is also related to s low number in STEM (science, technology and mathematics) graduates. the worst performer in STEM graduates with a mere 2.8 graduates in STEM per 1000 individuals compared to an average of 17 graduates per 1000 individuals for the (2012 figures). In May 2015, launched the new "Digital4Education" initiative 7, which is part of the "Digital Lëtzebuerg" strategy. 6 Source: Digital Agenda Scoreboard DESI 2015 Country Profile Page 3 of 6

4 3 Use of Internet 3 Use of Internet DESI DESI In terms of the propensity of individuals to use Internet services, s 0.54 (up from 0.51 last year) and s 5 th among countries. The use of internet continued to grow in most of the monitored categories with an exception of video calls, which has dropped. 3a1 News 3a2 Music, Videos and Games 3a3 Video on Demand % households that have a TV 3b1 Video Calls 3b2 Social Networks 3c1 Banking 3c2 Shopping % individuals who used Internet in the last year (aged 16-74) value value value 7 82% 10 67% 85% 59% 28% 42% 64% 70% 78% 4 53% 14 26% 14 46% 14 60% 9 67% 5 74% 11 49% 14 41% 8 37% 15 58% 10 57% 5 63% Internet users in Luxemburg are skilled and do not hesitate to engage in a broad range of online activities. They read news online (85%), listen to music, watch films and play games online (59%), use the Internet to communicate via video calls (42%) or through social networks (64%), and obtain video content using their broadband connections (28% of households with a TV use Video on Demand). For most of these activities, engagement among users in is in line with or higher than the average. DESI 2015 Country Profile Page 4 of 6

5 4 Integration of Digital Technology 4 Integration of Digital Technology DESI DESI In the dimension "Integration of Digital Technology" by businesses, s only 0.33, its second worst among the five DESI 2015 dimensions, and s 16 th among countries. 4a1 Electronic Information Sharing 4a2 RFID 4a3 Social Media 4a4 einvoices 4a5 Cloud 4b1 SMEs Selling Online % SMEs (no financial sector, 10+ employees) 4b2 ecommerce Turnover % turnover of SMEs (no financial sector, employees) 4b3 Selling Online Cross-border % SMEs (no financial sector, 10+ employees) value Rank value value 9 36% 6 31% 39% 4.9% 15% 6.6% 6.9% 7% 2.9% 15% % (2011) 14 15% % % 16 14% 22 11% 19 n.a. - 11% 25 n.a. - 15% 27 n.a % 2 15% 2 6.5% A true digital economy is one where businesses take full advantage of the possibilities and benefits offered by digital technologies, to improve their efficiency and productivity, and reach out to customers to sell goods and services. In this respect, the adoption of e-business practices by companies in Luxemburg shows a contrasted picture. s businesses exploit well Electronic Information Sharing and RFID technology. On the other hand, the use of einvoices dropped from last year. While both the percentage of SMEs selling online and the share of ecommerce in SME s turnover are low, SMEs from appear to take advantage of the internet to access non-domestic markets and sell cross-border. This is partly due to the size of the country and the openness of its economy. DESI 2015 Country Profile Page 5 of 6

6 5 Digital Public Services 5 Digital Public Services DESI DESI In the dimension of Digital Public Services s 0.33 and thus s only 23 rd among countries. Although the country achieved either growth or at least stagnation in all monitored categories, it was not enough to catch up with the countries in its cluster. Therefore, improvements in the areas of egovernement and ehealth remain to be key challenges for. 5a1 egovernment Users % individuals returning filled forms, out of Internet users in the last year (aged 16-74) 5a2 Pre-filled Forms Score (0 to 100) 5a3 Online Service Completion Score (0 to 100) 5a4 Open Data Score (0 to 700) 5b1 Medical Data Exchange % General Practitioners 5b2 eprescription % General Practitioners Value Rank value value 37% % 11% 14 27% % n.a % 14 11% 18 36% 14 27% Modern public services offered online in an efficient manner are a vehicle for reducing public spending as well as for driving efficiency gains for enterprises, citizens, and the public administration. has considerable potential to improve its offer of online public services, as internet users do engage and exchange documents online with the public administration. could do more, notably to improve the availability of open data: By making data available, government agencies can enable the private sector to leverage those data and create economic value. DESI 2015 Country Profile Page 6 of 6

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