Digital innovation in the private sector

European companies, and SMEs in particular, struggle to keep pace with rapid technological change, putting them at a competitive disadvantage in the global economy. Addressing this gap requires a clear, evidence-based understanding of where digitalisation is advancing, where it is stalling, and what policy levers can make a difference.

Our research monitors and analyses the digital transformation of European firms, examining technology adoption, digital skills, infrastructure, and the economic implications of digitalization across sectors and market structures. By identifying the challenges and opportunities presented by digital innovation, the project proposes strategies to harness its benefits while mitigating its risks, including its potential negative implications for sustainability and resilience.

Our research focuses on empirical economic analysis of digitalisation within European businesses in 4 main areas

• Digital technology adoption: Studying the factors influencing the adoption of digital technologies by organisations and their impact on productivity, efficiency, and competitiveness
• Digital decade monitoring: Tracks EU and Member State progress against Digital Decade targets across key areas: digital infrastructure, skills, business digitisation, and public services. Identifying sectors, regions, and countries that may need additional support
• Digital innovation ecosystems: Examines how to strengthen European digital innovation ecosystems and cross-sector collaboration, including the role of public sector, businesses, research institutions, and initiatives such as the EDIHs
• Risks and sustainability: Studies the negative implications of digitalisation, including risks to sustainability, and identifies strategies to mitigate them

• Analysis of digitalisation patterns within European firms, including AI adoption
• Recommendations to strengthen digital innovation ecosystems across sectors and regions
• A comprehensive monitoring of EU progress on Digital Decade targets
• Digital Maturity Assessment tools for SMEs and public sector organisations
• Impact assessment of the European Digital Innovation Hubs initiative

The project directly supports key EU policy initiatives, including

• Digital Decade Policy Programme
• Digital Europe, with a focus on the European Digital Innovation Hubs (EDIHs)
• Apply AI Strategy

European Digital Innovation Hubs Network

Apply AI Strategy

Europe's Digital Decade