Digital Human Capital as a Determinant of Digital Transformation Capacity in European Economies

The main objective of the paper is to assess the importance of selected components of digital human capital in shaping the digital transformation capacity of European countries, measured through the Network Readiness Index. The focus is on basic digital skills, ICT specialists and ICT graduates in relation to the Network Readiness Index and its four pillars. The empirical analysis is based on panel data for 27 European countries in 2018–2024. Digital human capital is measured through selected DESI Human Capital indicators, while digital transformation capacity is assessed using the Network Readiness Index. Kendall’s tau correlation analysis and fixed-effects panel regression were applied. The results show that the analyzed components of digital human capital differ in importance. The strongest positive relationship was identified for basic digital skills. In the panel regression model, basic digital skills were positively and statistically significantly associated with the overall NRI, whereas ICT specialists and ICT graduates were not statistically significant. The study provides a differentiated assessment of digital human capital components and their relevance for the digital transformation capacity of European economies. Improving basic digital skills can support digital inclusion, reduce disparities between countries and enhance participation in digital society.