The article discusses a recent Jupiter research that ranks the European countries based on their adotption proclivity of consumer digital technologies.

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by Haim Oren*
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We all have read during recent months, about the digital revolution that is
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introduced in the US and the European markets, which are revolutionizing the
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telecom, Internet, advertising, media and entertainment industries.
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We are witnessing an acceleration in in the rate of change in emerging consumer
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digital technologies, technologies that did not exist 25 years ago, or even ten years
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ago. We are seeing the emergence of digital consumer societies in Europe, the
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To assess the relative degree of digital penetration in each Western European
country, Jupiter Research recently created a Digital Life Index (DLI). Jupiter
Research scored 17 countries in Western Europe by 40 variables subdivided into
the following key sophistication factors, with the European average equaling
100:
TV adoption (digital TV)
Wireless and mobile
Online advertising and commerce
Online activity (usage, e-commerce)
Consumer Digital devices (PCs, DVD players, CD players, etc.)
The following map demonstrates the emergence of digital lifestyle in Western
Europe:
NOTE: 100 equals European average.
http://www.tim.co.il/101/1582.htm 11/06/2006

2. TIM - Technion Institute of Management Page 2 of 3
SOURCE: Jupiter Research Digital Life Index Model, 2/05 (Western Europe only)
PUBLISHED: March 18, 2005
A clear geographic hierarchy of digital sophistication can be observed from the
data, ranging from the most digitally developed Scandinavian markets (Sweden,
Norway, and Denmark) to the least sophisticated southern European ones (Italy
and Greece). Sweden has the highest European DLI score (124), followed
closely by Denmark (118) and Norway (116).
What are the implications of this study for Israel?
The Scandinavian region, with countries that have captured the top places in this
research, in terms of high DLI, has historically benefited from higher-than-
average per capita gross domestic product (GDP), strong infrastructure
development, and proactive state investment in information, communications,
and technology. Their model holds key insights for decision makers in our
government and academia.
Israel was not included in the study, but I think it would have captured a mid-to-
high position due to its:
High penetration and usage of cellular telephones
Very high Internet use/access
One of the highest penetration rates of broadband in the world
High household penetration of PCs, DVDs, digital cameras and video on
demand (VOD)
However, as I previously noted, the pace by which the global economy is moving
requires the Israeli government to proactively invest in building its digital
technologies sector, like the Scandinavian model.
Strengthening the high-tech sector is an important parameter in our future
economic development.
It encourages the further growth of GDP, as we know that in years in
which the high-tech sector showed high growth rates, it pulled the general
economy to grow as well
It helps to increase exports of the high-tech industry which account for
50% of Israel's industrial exports
It generates jobs for the highly educated young employees who are
coming out of the army and the universities
The consumer digital revolution is a global mega-trend. Thus, the ability to
leverage Israel's single most important national asset, which is our talented
workforce and know-how, is a sine qua non in the race to become a member of
the technologically advanced nations' club.
Developing our digital edge seems to be one of our main keys to enter and
remain in this club. The alternative is staying left behind with negative
consequences to our global competitiveness, economic strength and standard of
http://www.tim.co.il/101/1582.htm 11/06/2006

3. TIM - Technion Institute of Management Page 3 of 3
living.
* Haim Oren is head of the Israeli office of Jupiter Research (NASDAQ MCGC), an
international analyst firm that helps companies develop business strategies across
online and emerging consumer digital technologies.
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http://www.tim.co.il/101/1582.htm 11/06/2006