The European Union is closing the digital gap with the United States. More than half of European firms invested in digitalisation during the COVID-19 pandemic, and they are rapidly catching up with their US peers in implementing advanced digital technologies. Despite the progress, however, Europe is not well positioned in digital innovation, and it is at risk of developing dependencies in several critical technologies. Some key takeaways:

- Digitalisation has helped European firms adjust at a time of repeated economic shocks. Digital firms also tend to be more productive. - Successfully managing the digital transition and taking advantage of its long-term benefits goes beyond technology adoption – it requires societal change. - Firms' digitalisation depends on several factors, such as adequate digital infrastructure, competition-friendly regulation and labor market skills.The report, Digitalisation in Europe 2022-2023 : Evidence from the EIB Investment Survey, uses data collected from firms to shed light on the progress small and medium firms in Europe are making on digitalisation.

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