Belgium Digital Entrepreneurship Ecosystem Based on Digital Platform Economy Index 2020

Abstract

The current advancements in information technology enable us to build the global digital platform economy. Szerb et al. (2022) propose the Digital Platform Economy (DPE) Index, which includes four sub-indices and twelve pillars (each with two variables) to estimate the scale of the digital platform economy. This paper considers where Belgium stands regarding its digital entrepreneurship ecosystem, using the DPE Index 2020 as a yardstick. Belgium ranks 17th on the DPE Index 2020, with a score of 62.5, outperforming the EU and high-income nation averages. Furthermore, this research intends to narrowly investigate Belgium’s digital entrepreneurship ecosystem using the DPE Index’s four sub-indices and twelve pillars and data from other sources to make policy recommendations. It uses both a basic and pillar-based analysis to identify the relative importance of each pillar in the overall composite index and better understand the strengths and limitations of the Belgian digital entrepreneurship ecosystem. It applies quadrant analysis and policy optimisation, which are the foundations for the principal policy recommendation. Belgium’s DPE Index performance underscores the need for targeted policies to enhance digital infrastructure, education, and regulatory support. While outperforming the EU average, Belgium trails similar nations in technology adoption and digital literacy. A 5%/10% improvement could drive significant progress, with insights from the Netherlands and Luxembourg aiding competitiveness.