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Europe must be ambitious and strategic to take a quantum leap into the Digital Decade

Europe must be ambitious and strategic to take a quantum leap into the Digital Decade

by Cecilia Bonefeld-Dahl, Director-General of Digital Europe

This blog by Cecilia Bonefeld-Dahl, Director-General of Digital Europe was written to accompany the IIEA Panel Discussion on Digital Innovation in Europe, which was organised as part of the IIEA’s Europe’s Digital Future project. As part of this project, which is supported by Google, a year-long programme of events and research is exploring what the concept of digital sovereignty means, and what future it might herald for the EU and for small, open economies like Ireland.

The views expressed here are those of the author. 

Innovation and investment in digital technologies are a strategic priority for Europe, and the EU Recovery and Resilience Facility (RRF) as well as the EU strategy for the Digital Decade offer an unprecedented opportunity to take a quantum leap in digital transformation.

Digitalisation drives efficiencies, builds resilience and acts as an accelerator of growth in all industrial ecosystems. On average, businesses which adopt digital technologies grow 2.5 times faster than businesses which do not. Failure to digitise, on the contrary, leads to increased inequality, and regions with lower digital penetration, as well as small and medium-sized enterprises (SMEs), are especially at risk of falling behind.

We have the historic opportunity to unlock Europe’s digital potential. With €672.5 bn from the RRF, of which at least €150 bn will be invested in digitisation, and additional EU funds and programmes to draw from, including the Digital Europe programme and Horizon Europe, we have the necessary tools.

We now need to focus on ensuring this money is well spent, and that our investments bring impactful short, mid and long-term results. This means ambitious national recovery plans matched with structural reforms, clear and measurable targets and success indicators, regular reporting and transparency.

To ensure that Europe’s investments in digital have a measurable impact on innovation, we need:

  1. A pan-European vision for fully transitioning into the Digital Decade. Otherwise, we risk increasing the gap in digital maturity between Member States. This includes a better uptake of multi-country projects and cross-border coordination to position the EU as a global tech leader.

  2. Investment matched with strategic reforms. Legislative frameworks need to act as a catalyst – and not a barrier – to digital transformation. Adapting the legislative framework to new technologies is the #1 recommendation from tech scaleups to create a growth environment.

  3. Uptake of key enabling technologies, with an eye to balance short-term impact creation and long-term investment in a digitalised society. We need to build data spaces and invest in high-speed connectivity, artificial intelligence, and cybersecurity systems to act as a catalyst for lasting change. At the same time, we need to ensure no one is left behind, by helping SMEs digitise and by providing digital upskilling for all.

  4. Projects that create business opportunities to ensure return on investment, rather than using the money to patchwork holes in public administration. Currently, the majority of digital funds go towards modernising the public sector. It is an important goal but we need a better balance to ensure equal access to investment for the private sector as well.  It is imperative that SMEs can also benefit from funds and procurement opportunities.

  5. Transparency and multi-stakeholder collaboration. There was an alarming lack of transparency and industry consultation when drafting national recovery plans – we need to do better on implementation.

  6. Accountability and oversight. The Digital Decade will introduce regular reporting, but the European Commission also needs stronger tools to hold governments accountable to their commitments.

DIGITALEUROPE remains a reliable partner to the EU institutions, and to national governments through our national trade associations – including Technology Ireland under the leadership of Una Fitzpatrick. We closely follow progress on recovery plans, organise workshops for the public and private sector to exchange views, and advise the EU institutions on the strategic outlook and implementation of digital programmes.

We have published our own Investment Plan to inspire policymakers, outlining key investment areas, success indicators and actionable ideas for cross-border projects. We have also asked tech scaleups’ views on investment priorities and structural reforms, to give voice to those smaller companies who are in the front seat of driving digital innovation.   

Working together, Europe can unlock the potential of digital and enter the Digital Decade as a global tech leader. When the pandemic hit, we witnessed an amazing digital leap making years’ worth of progress within a few months. Imagine what we can do now that we have the tools. We need to make this right.

We need to think big – think European – think digital.

This blog is part of a three part series accompanying the IIEA Panel Discussion on Digital Innovation in Europe. The other blogs can be read by clicking on the hyperlinks below:

Digital Innovation: An Irish Perspective by Carol Gibbons, Divisional Manager for ICT and International Services Sectors in Enterprise Ireland

Accelerating Digital Innovation in Europe by Henna Virkkunen, MEP