Scandinavia and digital entrepreneurship

We have spent the last three years assembling data and constructing the Digital Entrepreneurship Index (DEI) with which we attempt to measure the Digital Entrepreneurial Ecosystem at the country-level (See Appendix for a description of all variables used). Each of the four concepts has three sub-indexes, bringing the total to 12 sub-indexes. The Digital Infrastructure Governance consists of openness, freedom, and internet security. Digital User Citizenship consists of digital literacy, digital access, and digital privacy. Digital Multi-Sided Platform consists of social networking, matchmaking, and digital finance. Finally, the Digital Technology Entrepreneurship consists of digital adaptation, digital technology absorption, and digital technology transfer.

If we plot the DEI and the per capita GDP all four Scandinavian countries’ DEI scores are higher than implied by its economic development. Based on the four sub-indices (Digital User Citizenship, Digital Technology Entrepreneurship, Digital Multi-sided Platforms, and Digital Infrastructure Governance), Sweden and Finland are more balanced than Norway and Denmark. The differences amongst the countries are the largest in the Digital Technology Entrepreneurship and the smallest in Digital Citizenship; Sweden has more than 12 points higher score in Digital Technology Entrepreneurship as compared to Finland. Digital Technology Entrepreneurship is the weakest sub-index of Norway, Denmark and Finland.

Figure 1: The Digital Entrepreneurship Index Score and GDP per Capita

Figure 2: Twelve Sub-Indexes of the Digital Entrepreneurship Index

Table 1:  Digital Entrepreneurship Index (DEI) – Scandinavian country performances

Out of 116 countries all Scandinavian countries belong to the first ten in ranking: Sweden 4th, Norway 7th ,Denmark 9th and Finland 10th. Sweden is 3.3 DEI scores behind the 3rd Netherlands, but has around ten percent less DEI score than the leading the US.