In today’s market, the economy relies heavily on the use of digital technologies. Digitalisation and the digital economy drive innovation, competitiveness and economic growth across the globe. As the COVID-19 crisis hits many businesses, the digital-savvy firms are finding new ways to succeed. Digital transformation can help many small and medium companies recover faster and prosper.

In 2019, Italy ranked 24th out of 28 Member States in the European Commission Digital Economy Society Index. There was a big need for Italy to improve in this area and embrace the digital economy. While there has been progress in recent years in cloud services and online commerce, Italian enterprises are still behind the digital curve in Europe.

In order to improve digitalisation in Italy’s economy, the COTEC Foundation was established. With the help of experts and academics, COTEC works with the state, local institutions, companies and research institutes to promote technology and science.

COTEC, in collaboration with the Italian Ministry of Education, universities and researchers, asked the Advisory Hub to undertake a study on ways to support the digitalisation of Italian small businesses, improve capabilities, and develop more financing mechanisms.

Building on the Advisory Hub’s experience in similar projects in Member States such as Portugal and Ireland, EIB Innovation Finance Advisory experts analysed the status of digitalisation in Italy for traditional and high-tech companies and identified potential funding and policy improvements. Next, the Advisory Hub set forth best practices that can address policies to promote small business digitalisation.

The Hub also assisted COTEC in outlining new financing instruments and other measures for the digital economy.

The COVID-19 crisis has shaken up the business landscape and significantly accelerated the calls for businesses to shift to a digital economy. The Hub’s support will be key in improving economic growth while helping Italy and its small and medium firms meet digitalisation objectives.