The aftermath of the last economic crisis has revealed that Europe not only needs to continue tackling its economic challenges, but it should also ensure that everybody reaps the benefits of progress. Increased inequality as well as underperforming productivity and growth dynamics are now seen as the two main challenges of Europe’s political agenda. While Europe is a more equal place to live overall, when broad indices compare its performance to that of other countries, income inequality has increased. The digital transformation of our economy and society is a root cause of the above trends. Digital innovation is fast and complex. The benefits from innovation therefore do not accrue to all people at the same time and at the same rate. This paper looks at the divergences that started to become apparent across four dimensions: countries, regions, firms and people. It presents available evidence and explores some of the emerging implications for R&I policy.
By Lukas Borunsky (DG RTD), Roberto Martino (DG RTD) and Marnix Surgeon (DG RTD)