Between 5.8% and 7.2% of total GDP in Denmark, Sweden and the UK can be attributed to the internet-based economy, but Spain and Italy are lagging on 2.2% and 1.9% respectively, according to the Boston Consulting Group report, called 'Sizing the digital economy'.
The calculations were made on the basis of the consumption, investment and exports attributable to internet activity and display wide varieties in performance across the continent as well as untapped potential.
Similar glaring disparities arose in a separate scale scoring 'e-intensity' in thirty-five countries across all continents, based on the availability of telecom infrastructure, total spending on the internet and the level of public activity on the internet.
North/south divide on 'e-intensity'
On this scale a clear geographical split was evident again with Denmark, France, Germany, Luxemburg, The Netherlands, Sweden and the UK all achieving a score well over 100 on the scale, which awards a maximum of 200 points.
Portugal, Italy and Greece – all suffering from the sovereign debt crisis in the eurozone – scored below 80 points on the scale, underlining poor internet infrastructure and engagement.
The report was carried out for Google and drew on international research produced by institutions including the United Nations and World Economic Forum.
Background research seen by EurActiv confirmed some underlying cultural trends to internet use. In the UK – where there are high levels of househould debt – consumers are more willing to purchase items online without seeing them first.
In the Netherlands, where there are lower household debt levels, internet purchases are much less frequently made on credit.
Italians research on the internet, but buy in the shops
In Italy meanwhile, the research showed that consumers are more likely to buy goods physically on the high street after having carried out preliminary research online.
The findings have a direct impact on small businesses, the report finds, claiming that over the past three years the average growth was more than 4% amongst SMEs which use the internet most in Belgium and the UK, but only 1.2% in Italy.
David Dean, senior partner at Boston Consulting, said that the GDP figure deriving from the internet is imperfect, since it cannot fully capture the extent to which people research online before purchasing goods in shops.
In an interview with EurActiv, he said that more needs to be done to promote internet activity for SMEs' growth.
"Of course without the infrastructure nothing much will happen. But that's not sufficient – it's important also to encourage businesses, governments and consumers to go on-line and for policy makers to adopt a 'joined up' approach," Dean said.
Jeremy Fleming
