The European Union's dual digital and green transitions, as well as enhancing competitiveness of the EU economy, depend on the widespread adoption and productive use of digital tools by firms. While the COVID-19 pandemic accelerated digitalization among companies, the gap between the most and least digitalized firms has expanded, threatening the collective progress towards achieving these goals. With digital technologies becoming increasingly accessible, the key to successful digitalization lies in the capacity of firms to leverage technology for productive use.
To address this challenge, the Digitrans project aims to design, pilot, and evaluate an effective instrument to strengthen firm productivity through the adoption of digital technologies and complementary managerial and organizational practices.
"The future competitiveness of Micro, Small, and Medium Enterprises (MSMEs) hinges on their ability to embrace and exploit digital technologies. The World Bank’s research highlights the growing importance of firms’ capacity to select appropriate technologies and use them effectively. Implementing a technology without building adequate expertise results in shallow digitalization. This challenge is most evident for MSMEs. Due to constrained resources, these entities often delay digitalization efforts, and fail to harness the full potential of new technologies, hampered by informational, behavioral, and organizational challenges."
About Digitrans
"The Digitrans project focuses on generating knowledge for designing and implementing effective policy instruments that can enhance the capacity of firms to successfully introduce digital solutions tailored to their needs. It provides inputs for formulating effective intervention strategies aimed at promoting sustainable and competitive digitalization. By drawing on global knowledge, generating country-specific insights, and using a rigorous experimental approach to identify barriers to effective digital adoption, the World Bank, and partners from three EU Member States, apply this knowledge to design targeted interventions aimed at fostering a deeper integration of digital technologies within MSMEs."
"In collaboration with the European Commission (DG REGIO) and partners from Bulgaria (BSMEPA – Bulgarian Small and Medium Enterprise Promotion Agency), Poland (PARP – Polish Agency for Enterprise Development), and Slovakia (MIRRI – Ministry of Investment, Regional Development, and Informatization), the Digitrans project is designing and piloting a support instrument that combines technological and firm capabilities. In 2024, this pilot will be delivered to nearly 600 MSMEs across the three countries. The pilot program's impact will be evaluated through Randomized Control Trials (RCT) to generate rigorous empirical evidence on the effectiveness of these interventions."
"This evidence-based methodology will establish a solid foundation for policy recommendations that can enhance support for MSME digitalization, including the creation of an effective tool that could be replicated across the EU- to help achieve the 2030 goal of over 90% of EU firms attaining at least basic digital intensity. Through its comprehensive research and empirical approach, Digitrans contributes to a future where MSMEs are not merely adapting to the digital age but are thriving in the digital economy."