HOW EQUIPPED ARE THE EUROPEAN WELFARE STATES FOR THE DIGITAL TRANSFORMATION?

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Professur für Policy Analyse und Politische Wirtschaftslehre Prof. Dr. Daniel Buhr Bildquellen: de.de; Abendblatt; zdnet Bildquellen: de.de; Abendblatt; zdnet HOW EQUIPPED ARE THE EUROPEAN WELFARE STATES FOR THE DIGITAL TRANSFORMATION? Fact-Finding Seminar on Digitalisation Berlin, 14.02.2017

Digitalisation: Integration of digital technologies into everyday life by the digitization of everything that can be digitized. (http://www.businessdictionary.com/definition/digitalization.html) 2 Daniel Buhr 2015 Universität Tübingen Source: www.zdnet.de

Digitalisation and GDP 0,75 Digitalisation / DESI Index (0 1) 0,7 0,65 0,6 0,55 0,5 0,45 0,4 Estonia Malta Lithuania Spain Slovenia Latvia Hungary Poland Croatia Denmark Netherlands Finland Sweden Belgium United Kingdom Portugal EU 28 Czech Republic Slovakia Cyprus Italy Germany Austria France Ireland Luxembourg 0,35 Bulgaria Greece Romania 0,3 0 20000 40000 60000 80000 100000 GDP/Capita ppp, current prices The DESI is a index consisting of five dimensions. It examines how EU states are developing to become a digital society. The index developed by the EU Commission (DG CNECT) comprises connectivity, human capital, internet usage, integration of digital technologies and digital public services (e-government). The index varies between 1 and 0, with 1 as the highest score. Source: http://ec.europa.eu/digital-agenda/en/digital-agenda-scoreboard; 28 September 2016. 3 Daniel Buhr 2017 Universität Tübingen

Digitalisation and Income inequality 0,75 0,7 Netherlands Sweden Denmark 0,65 Finland Belgium Digitalisation / DESI Index (0 1) 0,6 0,55 0,5 0,45 Ireland Luxembourg Malta Austria France Czech Republic Slovenia Hungary Slovakia United Kingdom Germany EU 28 Cyprus Estonia Portugal Latvia Spain Lithuania Poland 0,4 Croatia Italy Greece 0,35 Bulgaria Romania 0,3 3 4 5 6 7 8 9 Income Inequality (80/20 Quinitile ratio) 4 Daniel Buhr 2017 Universität Tübingen

How far have developments in individual welfare states progressed? How is labour market policy changing? What role does innovation policy play? What effects does digitalisation have on healthcare systems? What further developments can we expect? How can we use digitalisation for modernising the welfare state? Source: one-europe.info 5 Daniel Buhr 2017 Universität Tübingen

Digitalisation and Welfare State Two Dimensions: 1. Digital transformation is creating a new age of industrial production (i.e. Industrie 4.0) = external modernisation effect The processing of these changes and challenges needs to be supported by the welfare state. 2. Digitalisation of the welfare state redistribution regime is causing internal modernisation effects (i.e. E-Health/TeleCare; Work 4.0) Digitalised provision and administration of welfare services (Health, Care, Labour, Education). 6 Daniel Buhr / Rolf Frankenberger 2017 Universität Tübingen

7 Daniel Buhr 2017 Universität Tübingen

EU 28 Sweden Germany France Spain UK Italy Estonia Connectivity 0,9 0,8 0,7 0,6 E Government 0,5 0,4 Human Capital 0,3 Digital Economy Use of the Internet Datasource: DESI 8 Daniel Buhr 2017 Universität Tübingen

Inequality and Digitalisation 1 0,9 0,8 Finland Sweden Denmark 0,7 UK Estonia DESI - Digitalisation 0,6 0,5 0,4 France Germany EU 28 Italy Spain 0,3 0,2 0,1 0 0 1 2 3 4 5 6 7 8 Income Inequality (Quintile ratio) 9 Daniel Buhr 2017 Universität Tübingen

Modernisation and social inequality (Buhr et al. 2016) Modernisation Internal External Social Inequality low Sweden (also Denmark, Finland) medium United Kingdom Germany France high Estonia Italy Spain Source: Buhr et al 2016 Social standards are not downsides for economic growth, but rather form the foundation of innovative societies in which both producers and users benefit from faster, more successful and more customised innovations. (Andersson et al. 2016) 10 Daniel Buhr 2017 Universität Tübingen

Human capital Complexity capital Innovation Capability Structural capital Relational capital iit 2016 11 Daniel Buhr 2017 Universität Tübingen

Source: iit 2015 12 Daniel Buhr 2017 Universität Tübingen

Trust and life-satisfaction Source: Enste/Möller 2015 13 Daniel Buhr 2017 Universität Tübingen

Thank you. Prof. Dr. Daniel Buhr Institute of Political Science University of Tübingen Melanchthonstr. 36, 72074 Tübingen, Germany Telefon: +49 7071 29-74506 daniel.buhr@uni-tuebingen.de http://www.uni-tuebingen.de/pol/wip 14 Daniel Buhr 2017 Universität Tübingen

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