A recent study issued by the Vodafone Institute in cooperation with the Center for Advanced Security, Strategic and Integration Studies (CASSIS) at the German University of Bonn revealed an increase in European countries' reliance on digital technology from outside their borders between 2010 and 2023. This comes despite multiple initiatives launched by the continent's capitals to enhance their technological independence and reduce reliance on external suppliers.
The study, entitled "Setting the Right Strategic Priorities: Towards a Framework to Reduce Digital Dependency," explained that Europe's overall digital dependency rate increased by about 0.5 percentage points during the study period. In contrast, other countries witnessed a decline in this dependency; China's dependency decreased by about 11 percentage points, the United States by about 6 percentage points, and the BRICS countries by one percentage point.
Digital Dependency Index and Vulnerabilities
The study report relies on a modern index that compares 51 countries, including 16 European countries, and measures performance according to four main axes:
- ICT goods trade.
- Digital services trade.
- Digital platforms.
- ICT patents.
The index results showed that European countries recorded levels ranging from moderate to high in digital dependency. Digital platforms emerged as the most prominent structural weakness for the continent, given European countries' almost complete reliance on foreign providers in this vital sector.
Four Pathways to Enhance Technological Independence
The study identified four main strategic pathways to help Europe reduce digital dependency and build sustainable technological resilience, with the possibility of combining them according to priorities and costs:
- Strengthening supply chains: Developing existing industrial and technological capabilities to increase the importance of European expertise in vital sectors.
- Building domestic technological power: Pumping large-scale investments into a competitive digital ecosystem that includes platforms, infrastructure, and patents.
- Addressing bottlenecks: Targeting the most dangerous vulnerabilities that threaten national security or affect essential functions.
- Diversifying international partnerships: Reducing excessive reliance on a limited number of foreign suppliers by expanding the network of alliances.
What Does This Mean for Users and Policymakers?
These findings provide a data-driven framework to support decision-makers in Europe in prioritizing the protection of digital infrastructure. The continuation of the gap in the platform and digital services sector exposes the European economy to the risks of external disruptions, making the shift towards local capabilities and diversifying partnerships an operational necessity rather than merely a political choice.