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: Sînziana-Maria Rîndașu, Liliana Ionescu-Feleagă, Bogdan-Ștefan Ionescu, Ioan Dan Topor
Format: Article
Language:English
Published: Editura ASE 2023-11-01
Series:Amfiteatru Economic
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Online Access:https://www.amfiteatrueconomic.ro/temp/Article_3250.pdf
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author Sînziana-Maria Rîndașu
Liliana Ionescu-Feleagă
Bogdan-Ștefan Ionescu
Ioan Dan Topor
author_facet Sînziana-Maria Rîndașu
Liliana Ionescu-Feleagă
Bogdan-Ștefan Ionescu
Ioan Dan Topor
author_sort Sînziana-Maria Rîndașu
collection DOAJ
description 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.
format Article
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publishDate 2023-11-01
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spelling doaj-art-3b684ceb24ee4cd791bcc8d36bd567732025-08-20T01:56:56ZengEditura ASEAmfiteatru Economic1582-91462247-91042023-11-0125Special Issue No. 17968 98610.24818/EA/2023/S17/968 Digitalisation and Skills Adequacy as Determinants of Innovation for Sustainable Development in EU Countries: A PLS-SEM ApproachSînziana-Maria Rîndașu0https://orcid.org/0000-0002-1783-6926Liliana Ionescu-Feleagă1https://orcid.org/0000-0002-2087-2186 Bogdan-Ștefan Ionescu 2https://orcid.org/0000-0003-0021-2938Ioan Dan Topor3https://orcid.org/0000-0002-9092-1449Bucharest University of Economic Studies, Romania and 1 Decembrie 1918 University, Alba-Iulia, RomaniaBucharest University of Economic Studies, Bucharest, RomaniaBucharest University of Economic Studies, Bucharest, Romania1 Decembrie 1918 University, Alba-Iulia, RomaniaIncreasing 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.https://www.amfiteatrueconomic.ro/temp/Article_3250.pdf: digital performance (dp)digitalisationinnovation (io)skills adequacy (ska)sustainable developmenteu countries
spellingShingle Sînziana-Maria Rîndașu
Liliana Ionescu-Feleagă
Bogdan-Ștefan Ionescu
Ioan Dan Topor
Digitalisation and Skills Adequacy as Determinants of Innovation for Sustainable Development in EU Countries: A PLS-SEM Approach
Amfiteatru Economic
: digital performance (dp)
digitalisation
innovation (io)
skills adequacy (ska)
sustainable development
eu countries
title Digitalisation and Skills Adequacy as Determinants of Innovation for Sustainable Development in EU Countries: A PLS-SEM Approach
title_full Digitalisation and Skills Adequacy as Determinants of Innovation for Sustainable Development in EU Countries: A PLS-SEM Approach
title_fullStr Digitalisation and Skills Adequacy as Determinants of Innovation for Sustainable Development in EU Countries: A PLS-SEM Approach
title_full_unstemmed Digitalisation and Skills Adequacy as Determinants of Innovation for Sustainable Development in EU Countries: A PLS-SEM Approach
title_short Digitalisation and Skills Adequacy as Determinants of Innovation for Sustainable Development in EU Countries: A PLS-SEM Approach
title_sort digitalisation and skills adequacy as determinants of innovation for sustainable development in eu countries a pls sem approach
topic : digital performance (dp)
digitalisation
innovation (io)
skills adequacy (ska)
sustainable development
eu countries
url https://www.amfiteatrueconomic.ro/temp/Article_3250.pdf
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