Understanding Digital Capital

Digital Capital

• Digital capital is a type of capital (similar to economic, social, and cultural), that recognizes the socially valuable and life-improving aspects of technological and digital assets.

• Digital capital encompasses both internalized abilities (digital competencies) and externalized resources (digital technology), which accumulate over time.

• Digital capital is closely linked to other forms of capital, demonstrating a circular process where offline inequalities can lead to digital inequalities and vice-versa.

• Digital capital can bridge the gap between online and offline realms by generating social, economic, and political benefits, such as:

  • Social benefits: opportunities for socialization, building weak ties, and reinforcing strong ties.
  • Economic benefits: better employment opportunities, access to online services, and online shopping.
  • Political benefits: strengthening citizenship and participation in the European Digital Competence Framework for Citizens.

Measuring Digital Capital

• Digital capital was measured using an online survey with a representative sample of UK citizens.

• The study validated the operational definition of digital capital and confirmed that it can be measured empirically.

Factors influencing Digital Capital

• Age: Digital capital has a statistically significant negative relationship with age, suggesting that younger individuals tend to have a higher level of digital capital.

• Education: A higher level of education has a positive and statistically significant impact on digital capital.

• Gender: A slight gender difference emerged in the study, with men showing marginally higher digital capital than women; however, the difference was not statistically significant.

Context-Specific Study of Digital Capital

• The study aimed to explore, validate, and measure digital capital in an Italian context, specifically focusing on the following:

  • Validating the operational definition of digital capital, established in the UK study, within the Italian context.
  • Examining the correlation between digital capital and socio-economic and socio-demographic variables in Italy.

• The study's rationale is based on the low level of digital skills and knowledge in Italy, evidenced by the European Commission’s Digital Economy and Society Index (DESI).

• The DESI tracks the digital performance and progress of each member state, including Italy.

• Italy faces significant gaps in both basic and advanced digital skills. ### Digital Competence Index

• The Digital Competence Index (DCI) reflects the level of digital skills and knowledge within a population.

• The DCI is measured through a multistep factor analysis process that incorporates different variables.

• The three factors identified for the DCI are:

  • Problem-solving
  • Content creation
  • Safety

• The study used a two-step factor analysis approach to refine the DCI by isolating features that significantly contribute to the factors. ### Digital Access Index

• The Digital Access Index (DAI) reflects the availability and access to digital resources.

• The study used a factor analysis method to develop the DAI.

• The DAI incorporated variables related to access to technology, digital infrastructure, and online connectivity.

• The DAI is combined with the DCI to create a comprehensive measure of Digital Capital.