Digital transformation, cybersecurity, and digital resilience are becoming priorities at the European Union level. Achieving these goals is a priority not only for the EU but also for private companies, which can also finance projects in these areas through various funding and grant schemes. So what are the current options for financing cybersecurity and digital transformation?
Given the widespread trend toward automation and digitization, as well as the growing interest in artificial intelligence, many professions may disappear in the coming years. Repetitive tasks, in particular, are at risk of being partially or completely replaced by artificial intelligence and digital tools within a few years. Preparing the technical and technological infrastructure and equipping people for the digital transformation of society as a whole is therefore of the utmost importance. The trend toward digitalization is generally demonstrated and supported by numerous studies, research projects, and reports, including those from the European Union.
When financing digital transformation, it is important to be familiar with strategies and plans at both the national and EU levels, as these determine the focus, content, and scope of the tools (financial and non-financial). Grants and subsidies are one of the main tools for the European Union—and beyond—to achieve development policy goals. The same applies to the Recovery Plan, which consists of two levels—reform (i.e., the aforementioned strategies, plans, and legislative frameworks) and investment (grants and subsidies).
However, digital transformation is also associated with several shortcomings and threats that arise in connection with it. The response to these threats is ensuring cybersecurity and the protection of data and information. The European Union recognizes the importance of both issues (cybersecurity and digital transformation) and focuses on them. One of the European Commission’s main priorities is “Europe Fit for the Digital Age,” which includes supporting digital transformation through investments in businesses, research, and innovation; reforming data protection; empowering people with the skills needed for the new generation of technologies; and implementing appropriate rules. Therefore, we can expect that the European Union will support the topics of digitalization and cybersecurity not only through new legislation (reforms) but also through extensive opportunities for funding projects in the areas of digitalization and security (investments). The fact that digital resilience and cybersecurity are a priority is also evidenced by the new NIS2directive on cybersecurity, which is set to be approved in Q4 2022.
However, the European Union is not the only entity for which digital transformation and security are and will remain a priority. At the national (Slovak) level as well, we can expect new investments in this area—for example, from the aforementioned Recovery Plan. However, digital transformation and security are not financially accessible to many Slovak small and medium-sized enterprises, and these entrepreneurs do not attach sufficient importance to them. As indicated by a survey conducted by the Slovak Business Agency in cooperation with the National Security Authority, small and medium-sized enterprises would most welcome measures in the form of grants, vouchers for purchasing technology, and funding for training and educational courses to improve cybersecurity. This need will soon become a reality.
What will the funding options be for projects in the areas of digital transformation and cybersecurity?
Under the Digital Europe program, we can expect the following in this programming period:
- 1.6 billion EUR for cybersecurity
- These funds are intended to help strengthen cybersecurity coordination among the tools and data infrastructures of European Union member states and to support the deployment of cybersecurity across the entire economy.
- 580 million EUR to improve digital capabilities
- €1.1 billion to ensure the widespread use of digital technologies across the entire economic and social spectrum.
Some interesting calls for proposals in the field of cybersecurity, such as support for information and cybersecurity in healthcare facilities, have already been launched. We expect more in the coming months. Specifically in the area of “European Cyber-Shield” and in the area of Supporting the Implementation of Relevant EU Legislation. In total, we can expect 7 calls for proposals in 2022 in these areas, offering funding of up to 184 million euros.
As part of the Recovery Plan, specifically the Digital Slovakia component, a total of up to €615 million is to be gradually released for projects in the areas of digital transformation, development of the digital economy, improvement of digital skills, and more.
By the end of 2022, we expect calls for proposals to be announced, through which it will be possible to apply for an Innovation Voucher and a Digital Voucher. These are already familiar to many entrepreneurs, as similar vouchers have become attractive, popular, and relatively common tools for financing company development or audits in recent years. The Slovak Government Office will be the entity announcing the calls for voucher applications.
Financing digital transformation and ensuring the protection of data and information should therefore not be difficult. Prepare for the future with us. This is an ideal opportunity to do so.
