Digitalisation and Skills Adequacy as Determinants of Innovation for Sustainable Development in EU Countries: A PLS-SEM Approach
Increasing innovation among the European Union (EU) countries became a primary concern, as it can contribute to higher competitiveness, generate new business opportunities, and promote the achievement of the sustainable development goals. This paper aims to examine the extent to which the EU coun...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Editura ASE
2023-11-01
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| Series: | Amfiteatru Economic |
| Subjects: | |
| Online Access: | https://www.amfiteatrueconomic.ro/temp/Article_3250.pdf |
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| Summary: | Increasing innovation among the European Union (EU) countries became a primary concern,
as it can contribute to higher competitiveness, generate new business opportunities, and
promote the achievement of the sustainable development goals. This paper aims to examine
the extent to which the EU countries’ level of digitalisation and skills adequacy impact the
innovation output, as well as to determine whether the level of digitalisation can lead to an
increase in the individuals’ competencies and employability. For this research, we leverage
a Partial Least Squares - Structural Equation Modelling technique. The data used to achieve
the study’s objective was collected from composite indicators computed for the 27 EU
countries for a period of analysis spanning the years from 2017 to 2020. As a proxy for the
digital performance, we use the Digital Economy and Society Index, while for skills
adequacy and innovation output, we utilise the European Skills Index and the dimension of
innovation output dimension of the Global Innovation Index. The results indicate a
statistically significant impact between the level of digital performance and innovation
output, with a moderate effect size, partially mediated by skill adequacy. Moreover, the
findings emphasise that a higher level of digitalisation determines an increase in the
individuals’ employability and competencies. The study enhances the understanding of the
complex relationship between digitalisation, skills, and innovation by shedding new light on
the trajectories’ coevolution of the analysed constructs, presenting some implications for
policymakers and governments, and providing theoretical suggestions for future research. |
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| ISSN: | 1582-9146 2247-9104 |