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Page updated:
10 May 2000

European Telework Online

The e-commerce investment gap: Europe-USA seven year comparisons

The free of charge provision of these resources is made possible by our sponsors:

The three charts on this page are compiled from data in the EITO Reports, 1994-2000, which has since 1994 been the most consistent and reliable data series tracking ICT investment and use across Europe and in Europe compared with other world regions.

Although the EITO reports also provide lots of forecast data, for these charts we have chosen historic data which we believe to be highly reliable. The commentary and analysis are by European Telework Online.

IT Investment as a percentage of GDP, EU and USA, 1992-1998

This is a particularly useful metric since it allows us to infer the relative enthusiasm for IT investment between two countries or regions. What proportion of total GDP is invested in information and communications technologies? The pro rata investment gap has worsened between 1992-1998, with Europe investing at three-quarters the USA rate in 1993, but dropping to only slightly over half the USA rate by 1997. In 1998 the gap appears to narrow, but this was at a time when the overall USA economy was growing much faster than Europe's, so that in real terms (the difference in actual spending) the gap probably continued to widen.

Click here or in the image below for a larger scale, higher resolution graph.

Chart IT investment as % of GDP

   

IT Investment per capita, EU and USA, 1992-1998

This second graph looks at the amount invested per head of population. It addresses the question, "In relative terms, how much access to ICTs is enjoyed by individuals and companies in one country compared with another?". Again the gap at beginning of the period is wide and it gets wider. Even in 1998, the difference in the amount invested per head of populations increased by more in the USA than in Europe. The USA spend has been more than double that of Europe for each year since 1993.

Click here or in the image below for a larger scale, higher resolution graph.

Chart showing IT Investment per Capita (ecu/€), EU and USA, 1992-1998

   

Cumulative difference in investment levels, EU and USA, 1992-1998

It is when we look at the cumulative effect that the impact becomes most striking. In the period 1992-1998 the USA spent more than 5,600 Euros or equivalent per head of population on acquisition of IT, while Europe spent less than 2,700 per head.

Click here or in the image below for a larger scale, higher resolution graph.

Chart showing IT investment per capita, EU and USA, cumulative 1992-1998

   

Country variations

Within the European Union there are veyr wide variations between countries, as shown by the following two charts. The first shows the level of IT investment per head of population (in Euros) in the most recent reported year, 1998:

   

Click here or in the image below for a larger scale, higher resolution graph.

Chart showing IT investment per capita for the countries of the European Union, 1998, in Euros

and the second shows the number of PCs per 100 population. This is a useful (if crude) metric indicating the relative local opportunity for local companies wanting to introduce e-commerce methods. Note that the average for the USA as a whole is more than twice the level for the EU as a whole.

   

Click here or in the image below for a larger scale, higher resolution graph.

Chart showing number of PCs per 100 population for the countries of the European Union and for the USA, 1998

The data in the charts above are all extracted from the European IT Observatory annual reports. Current and recent editions are available from European Telework Online, click here for further details
The EITO Report is available here

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