Digital Development of Serbia Compared to Selected European Countries: A Comparative Analysis

The aim of this research is to analyze the level of digital development achieved by sixteen European countries based on Microsoft’s Digital Future Index from 2021. The countries analyzed in the report are classified into three groups: a) Digitally Advanced “Benchmark” Countries of Western Europe (the Netherlands, Denmark, Sweden, and Finland), b) Europe’s Fast-Growing Digital Leaders (Czech Republic, Estonia, Malta, Slovenia, and Portugal), and c) Digital Followers of Central & Eastern Europe (Croatia, Hungary, Poland, Romania, Russia, Serbia, and Greece). By applying comparative graphical analysis, using a 45-degree line, the relationship between the Level of Digital Development and the Benefits of Digitization in these countries was examined. The findings indicate that economies with a relatively lower Digital Development Score achieved relatively higher Economic and Social Gains Scores. This highlights the need for more efficient management of digitalization factors in countries leading the digital development process. Furthermore, the inputs to the development of digitization and the economic and social results of achieved digital development were visually compared both for the three previously identified groups of European countries and specifically for the Republic of Serbia. The research findings demonstrate that the digital Followers of Central & Eastern Europe significantly lag behind the “Benchmark” countries of Western Europe and Europe’s fast-growing digital leaders in terms of achieved digitalization levels. Serbia lags in the development of digital infrastructure, digital skills, the adoption of digital technologies, and the overall level of human capital development compared to other European countries.