Digital protectionism versus open digital markets: analysis of technology diffusion in European economies

This paper investigates the association between divergent digital policy regimes (ranging from open market frameworks to digital protectionism) and technology diffusion and competitive dynamics across 33 European economies. As nations grapple with digital sovereignty and global integration, the choice of policy framework becomes a critical determinant of economic outcomes. Using enterprise-level Customer Relationship Management (CRM) adoption rates from 2023 as a key proxy for technological integration, this study employs non-parametric statistical analysis to assess the complex relationship between policy orientation, national economic potential, and market performance. The findings reveal a significant “paradox of openness”: while countries with open digital markets exhibit stochastically higher levels of technological adoption, they also display the greatest internal dispersion in performance. This suggests that an open policy environment creates opportunities for digital leaders to accelerate but can widen the gap with less-developed nations, highlighting that national economic potential (GDP per capita) and institutional quality remain a powerful determinant of success. This finding highlights the key role of national economic potential.