Original scientific paper
https://doi.org/10.18045/zbefri.2026.1.3
Determinants of ICT Adoption and the Fourth Industrial Revolution in the EU
Tomislav Galović
; University of Rijeka, Faculty of Economics and Business
Davorin Balaž
; University of Rijeka, Faculty of Economics and Business
*
Petra Karanikić
; University of Rijeka, Faculty of Biotechnology and Drug Development
* Corresponding author.
Abstract
Information and communication technology (ICT) is transforming the world and rapidly reshaping both the economy and the society. It is a central driver of the Fourth Industrial Revolution (4IR), a new paradigm of digital transformation, industry, and technological development. Within the European Union (EU), the 4IR has become a strategic priority aimed at reducing the competitive gap with its most important rivals, such as the United States of America and China. This research seeks to increase the knowledge and deepen the understanding of ICT and the 4IR, as well as their drivers. The key objective is to identify the determinants of ICT adoption and the 4IR in the EU during the period 2012-2019. To achieve this, a two step dynamic panel generalized method of moments (GMM) estimator was used. The main findings indicate that foreign direct investment, institutional framework, economic growth and globalization are all positively and statistically significant associated with ICT adoption and the 4IR. Given that ICT and the 4IR represent crucial engines and strategic priorities of EU and global development, EU policy makers should be focused on the creation of a macroeconomic and political environment that will encourage digital transformation and a faster adoption of ICT.
Keywords
information and communication technology; the Fourth Industrial Revolution; European Union; generalized method of moments
Hrčak ID:
348626
URI
Publication date:
30.6.2026.
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