Digital Economy and Society Index1 20152 Country Profile Ireland Ireland has an overall score3 of 0.52 and ranks 9th out of the 28 EU Member States. During the past year, take-up of fast broadband has increased considerably (subscriptions in the last year increased from 30% to 40%), while use of internet services has also increased (71% use video on demand, 63% use social networking, 62% used online shopping and 60% use online banking, while 56% of internet users use eGovernment actively). More progress is needed on increasing digital skills (only 53% of the population have sufficient digital skills to operate effectively online, down from 56% in 2012) and the number of skilled ICT professionals in the economy (around half of enterprises trying to employ ICT specialists report difficulties doing so), as well as in the integration of digital technologies by enterprises (for example, 23% of businesses use electronic information sharing technologies and 4% 1 The Digital Economy and Society Index (DESI) is a composite index developed by the European Commission (DG CNECT) to assess the development of EU countries towards a digital economy and society. It aggregates a set of relevant indicators structured around 5 dimensions: Connectivity, Human Capital, Use of Internet, Integration of Digital Technology and Digital Public Services. For more information about the DESI please refer to http://ec.europa.eu/digital-agenda/en/digital-agenda-scoreboard 2 The DESI 2015 is constructed from indicators referring mostly to the calendar year 2014 (except when data is not available for that calendar year, in which case the latest prior data was used). 3 DESI scores range from 0 to 1, the higher the score the better the country performance. use RFID). Ireland falls into the cluster of 4 medium-performance countries, where it performs slightly above average. Ireland Cluster EU rank score score score DESI 2015 9 0.52 0.51 0.47 DESI 2014 11 0.49 0.47 0.44 4 In the DESI 2015, the medium-performance cluster of countries comprises Austria, Belgium, the Czech Republic, Germany, Estonia, Spain, France, Ireland, Lithuania, Luxemburg, Malta, Portugal and the United Kingdom. DESI 2015 Country Profile – Ireland Page 2 of 7 1 Connectivity Ireland Cluster EU rank score score score DESI 2015 18 0.53 0.6 0.55 DESI 2014 16 0.48 0.54 0.51 1 Connectivity With an overall score of 0.53, Ireland ranks 18th among EU countries in the Connectivity dimension of the DESI 2015, below the average for the EU and for its cluster. Ireland DESI 2015 DESI 2014 value 1a1 Fixed BB Coverage 96% % households (2013) 1a2 Fixed BB Take-up 62% % households (2014) 1b1 Mobile BB Take-up Subscribers per 100 people 71 (2014) 1b2 Spectrum 77% % of the target for spectrum to be harmonised at EU level (2014) 1c1 NGA Coverage 54% % households, out of all households (2013) 1c2 Subscriptions to Fast BB 40% % of subscriptions >= 30Mbps, out of fixed BB subscriptions (2014) 1d1 Fixed BB Price % individual gross income spent for the cheapest standalone Fixed Broadband subscription (lower values are better) 2.2% (2014) rank 20 20 9 10 23 9 24 value rank 96% 20 (2013) 60% (2013) 65 (2013) 77% (2013) 54% (2013) 30% (2013) 2% (2013) 20 9 10 23 10 20 EU DESI 2015 value 97% (2013) 70% (2014) 67 (2014) 70% (2014) 62% (2013) 22% (2014) 1.3% (2014) While 96% of the Irish households are covered by fixed broadband this is somewhat below the EU average. Furthermore, take-up is only at 62% of households; as such, Ireland ranks 20th in the EU on both these indicators. Take–up of mobile broadband at 71 out every 100 people is above the EU average. Spectrum harmonisation is also above average for the EU. Next-generation access (NGA) coverage in Ireland, at 54% of households, is below the average for the EU (62%). Subscriptions to fast broadband (at least 30 Mbps) have seen a significant increase over the last year to 40% of total fixed broadband subscriptions, from 30% in 2014. Prices for fixed broadband in the Ireland are almost double the EU average, when measured as a proportion of income, and have become relatively more expensive over the last year. DESI 2015 Country Profile – Ireland Page 3 of 7 2 Human Capital Ireland Cluster EU rank score score score DESI 2015 7 0.62 0.57 0.54 DESI 2014 7 0.62 0.54 0.52 2 Human Capital With a Human Capital (digital skills) score of 0.62, Ireland ranks 7th among EU countries for his domain of the DESI, performing slightly better than the average for the EU (0.54), as well as for its cluster (0.57). Ireland DESI 2015 value 2a1 Internet Users 76% % individuals (aged 16-74) (2014) 2a2 Basic Digital Skills 53% % individuals (aged 16-74) (2014) 2b1 ICT Specialists 3.8% % employed individuals (2013) 2b2 STEM Graduates Graduates in STEM per 1000 individuals (aged 20 to 29) 22 (2012) DESI 2014 rank value rank 13 75% 12 20 7 2 (2013) 56% (2012) 3.8% (2012) 22 (2012) 13 7 2 EU DESI 2015 value 75% (2014) 59% (2014) 2.8% (2013) 17 (2012) At 76%, Ireland exhibits a rate of internet use amongst its population similar to that of the EU average. The digital skills of the population exhibit significant gaps, with only 53% of the population having sufficient digital skills to operate effectively online. This figure has also fallen somewhat over the last two years. While the proportion of ICT specialist in total employment, at 3.8%, is relatively high and the proportion of STEM (Science, Technology, Engineering and Mathematics) graduates is also above the average for the EU, Ireland is lacking skilled ICT professionals. Demand for skilled ICT professionals within the economy has been rising, while the supply is not keeping pace. Around half of enterprises trying to employ ICT specialist report difficulties doing so. More young people need to be attracted to ICT jobs, which provide good career opportunities, are well paid and which are key skills for deriving the benefits of ICT for the economy and society. DESI 2015 Country Profile – Ireland Page 4 of 7 3 Use of Internet Ireland Cluster EU rank score score score DESI 2015 17 0.41 0.44 0.41 DESI 2014 20 0.36 0.42 0.39 3 Use of Internet In terms of online activities, Ireland scores 0.41 (up from 0.36 last year) and ranks 17th among EU countries. A broad-based increase in use of internet services can be witnessed. Ireland DESI 2015 DESI 2014 value 3a1 News 46% % individuals who used Internet in the last 3 months (aged 16-74) (2014) 3a2 Music, Videos and Games 43% % individuals who used Internet in the last 3 months (aged 16-74) (2014) 3a3 Video on Demand 71% % households that have a TV (2013) 3a4 IPTV 2.3% % households that have a TV (2013) 3b1 Video Calls 36% % individuals who used Internet in the last 3 months (aged 16-74) (2014) 3b2 Social Networks 63% % individuals who used Internet in the last 3 months (aged 16-74) (2014) 3c1 Banking 60% % individuals who used Internet in the last 3 months (aged 16-74) (2014) 3c2 Shopping 62% % individuals who used Internet in the last year (aged 16-74) (2014) rank 28 23 3 24 22 15 13 12 value rank 42% 28 (2013) 23% (2012) 71% (2013) 2.3% (2013) 34% (2013) 61% (2013) 58% (2013) 57% (2013) 28 3 24 20 14 14 12 EU DESI 2015 value 67% (2014) 49% (2014) 39% (2013) 13% (2013) 37% (2014) 58% (2014) 57% (2014) 63% (2014) The most popular online activities amongst Irish internet users are VoD (Video on Demand, 71%), social networking (63%), online shopping (62%) and online banking (60%); and the use of these services by internet users continues to increase. However, the use of other online services is also on the rise. In particular, the biggest increase in users has taken place for music, videos and games (+ 20 pp.). DESI 2015 Country Profile – Ireland Page 5 of 7 4 Integration of Digital Technology Ireland Cluster EU rank score score score DESI 2015 3 0.47 0.37 0.33 DESI 2014 3 0.43 0.34 0.3 4 Integration of Digital Technology In Integration of Digital Technology by businesses, Ireland scores 0.47, above the EU average and the average score for its cluster. Nevertheless, businesses in Ireland could better exploit the possibilities offered by electronic information sharing and Radio-frequency identification (RFID). Ireland DESI 2015 value 4a1 Electronic Information Sharing 23% % enterprises (no financial sector, 10+ employees) (2014) 4a2 RFID % enterprises (no financial sector, 10+ employees) 4% (2014) 4a3 Social Media 31% % enterprises (no financial sector, 10+ employees) (2014) 4a4 eInvoices 14% % enterprises (no financial sector, 10+ employees) (2014) 4a5 Cloud 15% % enterprises (no financial sector, 10+ employees) (2014) 4b1 SMEs Selling Online 24% % SMEs (no financial sector, 10+ employees) (2014) 4b2 eCommerce Turnover 37% % turnover of SMEs (no financial sector, 10-249 employees) (2014) 4b3 Selling Online Cross-border 11% % SMEs (no financial sector, 10+ employees) (2013) rank 21 13 2 6 7 5 2 6 DESI 2014 value rank 22% 21 (2013) 4% (2011) 24% (2013) 14% (2013) 3 4 8 n.a. - 22% 4 (2013) 37% (2013) 11% (2013) EU DESI 2015 value 31% (2014) 3.8% (2014) 14% (2014) 11% (2014) 11% (2014) 15% (2014) 2 8.8% 6 6.5% (2014) (2013) A true digital economy is one where businesses take full advantage of the possibilities and benefits offered by digital technologies; both to improve their efficiency and productivity, as well as to reach customers and realise sales. Businesses in Ireland are not fully taking advantage of these possibilities. The adoption of digital technologies is an important driver of labour productivity growth and needs to be strengthened. The percentage of businesses using technologies such as electronic information sharing (Enterprise Resource Planning – 23%) and RFID (4%), are relatively low and Ireland ranks 21st and 13th, respectively, in the EU for these two indicators. In terms of eInvoices and Cloud take up Irish businesses perform slightly better than the EU average. Take-up of Social Media, at 31% of enterprises, is advanced; and Ireland ranks 2nd in the EU with respect to this indicator. Irish SMEs have taken to eCommerce relatively more readily than those in most other EU countries. 24% of Irish SMEs sell online, significantly above the average for the EU of 15%. 37% of their turnover comes from this source. On average in the EU it is 8.8%. 11% of Irish SMEs sell cross-border. DESI 2015 Country Profile – Ireland Page 6 of 7 5 Digital Public Services Ireland Cluster EU rank score score score DESI 2015 9 0.51 0.49 0.47 DESI 2014 10 0.47 0.45 0.45 5 Digital Public Services With a score of 0.51, Ireland ranks 9th among EU countries in the Digital Public Services domain of the DESI 2015, an improvement in both score and rank from the previous year. Ireland DESI 2015 DESI 2014 value 5a1 eGovernment Users % individuals returning filled forms, out of Internet users in the last year (aged 16-74) 5a2 Pre-filled Forms Score (0 to 100) 5a3 Online Service Completion Score (0 to 100) 56% (2014) 32 (2014) 90 (2014) 5a4 Open Data 480 Score (0 to 700) (2014) 5b1 Medical Data Exchange 37% % General Practitioners (2013) 5b2 ePrescription 5% % General Practitioners (2013) rank 4 18 5 8 11 19 value rank 45% 5 (2013) 36 (2013) 87 (2013) 21 4 n.a. - 37% 11 (2013) 5% (2013) 19 EU DESI 2015 value 33% (2014) 45 (2014) 75 (2014) 380 (2014) 36% (2013) 27% (2013) Modern public services offered online in an efficient manner are a vehicle for reduction of public administration expenditure as well as for efficiency gains for both enterprises and citizens. While active eGovernment use at 56% is above the EU average (33%), provision of pre-filled forms5 in online services is relatively low (32 out of 100), and where Ireland ranks 18th out of 28 countries. Conversely Ireland performs relatively well in the EU with respect to online service completion6 (ranked 5th) and Open Data (ranked 8th). In the domain of eHealth, 37% of General Practitioners in Ireland use Medical Data Exchange. At 5% of General Practitioners, ePrescriptions are significantly less widely used than is average in the EU (27%). 5 The Pre-filled Forms indicator measures the extent to which data that is already known to the public administration is pre-filled in the forms that are presented to the user. 6 The Online Service Completion indicator measures the extent to which the various steps in an interaction with the public administration – life event – can be performed completely online. DESI 2015 Country Profile – Ireland Page 7 of 7