Chapter 5: - Progress on digital transformation - The European Union is closing the digital adoption gap with the United States, but is not well positioned on digital innovation

Chapter 5: Progress on digital transformation Chapter 5: Progress on digital transformation The European Union is closing the digital adoption gap with the United States, but is not well positioned on digital innovation More than half of firms invested in EU firms are accelerating the adoption of Europe trails in digital innovation, and it is less digitalisation in response to the COVID-19 new, ad. [...] 70 100 60 80 50 40 60 30 40 20 10 20 0 0 Major trade disruption Taking action in response to trade Investments to deal with physical risks of climate Investments to reduce greenhouse gas emissions distruption change Non-digital Most advanced in digitalisation Not digital Most advanced in digital POLICY IMPLICATIONS → Successfully managing the digital transition and taking advantage of its long-ter. [...] → To make the most of the digital transformation, the European Union will need to position itself well in the global environment, creating better internal conditions for innovation in technologies that are crucial to European interests and taking full advantage of the benefits of digitalisation, while staying within the boundaries of the European economic model. [...] The EIB Investment Report, issued annually by the European Investment Bank, provides a comprehensive overview and analysis of investment and the financing of investment in the European Union. [...] The Investment Report 2022/2023 can be downloaded at % of firms % of firms Probability (in %) % of firms Share of firms (in %) Digital adoption (% of firms in sector) Share of R&D expenditure (in %), by sector Slide Number 1.