Given the disparities between the European Union member states in terms of the quality of governance, the management of financial resources and the efforts to improve economic performance and the well-being of society, digital innovation appears as an essential solution in stimulating digital governance. This research aims to rank the regions of the European Union from the perspective of digital performance and offers a new perspective on the digitalisation process and its effects on the European public system. The evolution of the intensity and impact of digitalisation will be examined through the e-government framework, specifically from the perspective of the 27 member states of the European Union (EU). This study employs a multi-faceted methodological approach to analyse longitudinal data within the EU from 2017 to 2022: data mapping, robust regression, Gaussian and mixed-Markov graphical (GGMs), and analysis hierarchical clustering. First, we conducted data mapping to overview the variables under consideration comprehensively. Subsequently, we employed robust regression analysis to examine the direct impacts of key digitalisation, innovation, world governance, and economic indicators on economic development. To further explore the relationships between these variables, we utilised Gaussian and mixed-Markov graphical modelling. Finally, we performed hierarchical clustering with Euclidean distance on the panel dataset, clustering EU countries based on their performance across the variables for 2017 and 2022. This clustering facilitated a more nuanced and comparative assessment of digital performance across different groups of EU member states. Our results highlight the significant disparities among the diverse nations and the multifaceted contemporary challenges EU member states encounter in implementing and adopting specific e-governance initiatives alongside the hierarchical performance patterns observed in digitalisation and innovation. The main findings imply that nations with substantial investment in research and development and digitalisation tend to exhibit robust economic progress. Denmark, Finland, and Sweden have shown the most adaptability and innovation in enhancing administrative efficiency. Notably, some nations with substantial economic potential, such as Bulgaria, Poland, and Romania, do not dedicate adequate resources to innovation. The results suggest that nations should adapt their digital transformation strategies to integrate digital technologies and continuous innovation to improve the effectiveness of e-government. Establishing effective e-government relies on more than just technology. It also requires carefully devised strategies, appropriate resource allocation, ongoing innovation, and dedication from the government to deliver accessible, secure, and user-friendly e-services.