Digital transformation in the EU and the recovery and resilience fund : a comparative analysis of Italy and Portugal

Abstract

This dissertation examines digital skills development in the European Union (EU), incorporating a comparative analysis of Portugal and Italy with a focus on digital skills development and the contribution of the Recovery and Resilience Facility (RRF). The EU’s digital transformation agenda aims to improve member countries’ competitiveness, connectivity, and inclusion by strenghtening digital infrastructure, government operations, innovation, data safeguarding, and most importantly, digital skills and education. The RRF complements this objective by allocating a significant amount of financing towards digital transformations and investments. The primary objective of this study is to assess the performance of Portugal and Italy in the digital sphere, focusing on identifying gaps in digital skills and assessing how RRF-funded initiatives handle these obstacles. The dissertation is motivated by two research questions, namely: 1) How do Italy and Portugal compare in their digital transformation, with a focus on digital skills? and 2) What digital transformation policies have these countries adopted, and how is the Recovery and Resilience Fund assisting in particular with regard to digital skills? A comparative case study methodology is applied in this dissertation, which incorporates both quantitative and qualitative approaches. Quantitative data, mainly from the Digital Economy and Society Index (DESI), offers a measurable assessment of digital performance and skills levels in both nations. This makes it easier to assess existing strengths and weaknesses in comparison to EU average levels. Qualitative analysis examines policies, national digital strategies, and RRF investment strategies to better comprehend government objectives, implementation tactics, and structural approaches to enhancing digital skills. The findings in this study show that while both countries confront persistent issues in digital skills, Portugal performs better in terms of digital literacy and public involvement in digital training programmes. Italy’s digital skills landscape exhibits wider regional disparities. RRF financing in both nations aims to enhance digital capabilities, but policy goals differ; Portugal prioritises nationwide digital education and inclusive training programmes, whereas Italy focuses on modernising employment abilities and tackling territorial disparities. Overall, the study emphasises the understanding of EU digital governance by examining how specific EU financial support could contribute to decreasing digital skills disparities and promoting digital inclusion. The comparative approach highlights not just the progress made but also areas where both nations’ policies must be strengthened to accomplish EU digital objectives and guarantee that consumers and enterprises are prepared for an increasingly digital future.