• With over 600 participants from more than 40 countries, the 2024 DIGITAL SME summit showcased the potential of European digital SMEs to deliver technological sovereignty and transform Europe into a continent of digital leaders

• At the summit, EU Commission Executive Vice-President Henna Virkkunen announced the investment of € 750 million in seven supercomputers to propel the AI capacity of European industry

• While Virkkunen underscored the importance of tech SMEs in shaping the future of European tech sovereignty, the announced investment indicates the continent’s capacity to build its own technological stack

Yesterday, the European DIGITAL SME Alliance held the second edition of the DIGITAL SME summit,  showcasing how Europe’s digital SMEs can deliver technological sovereignty for Europe and advance the vision for European technological leadership.

Hosted at the European Economic and Social Committee, the summit brought together over 600 participants during the day, including prominent policymakers, innovators, and industry leaders from across Europe.

European Commission’s Executive Vice-President for Technological Sovereignty, Security, and Democracy, Henna Virkkunen, chose the event as the platform for her first public speech since assuming office. She underscored the role of tech SMEs in shaping the future of European technological leadership.

Throughout the day’s debates, speakers from diverse sectors emphasised the critical role of tech SMEs in making digital markets contestable and driving an inclusive, innovative digital economy in Europe. The discussions highlighted how digital SMEs drive transformation across industries by providing niche, targeted solutions that embody European values and fuel progress.

On artificial intelligence, participants emphasised the importance of moving beyond regulation to unlock investments, foster industrial capacity and ensure that Europe can lead in developing AI vertical foundation models. Concerns were raised about market concentration in the AI sector, with industry representatives advocating for a competitive environment where smaller innovators can thrive.

Sebastiano Toffaletti, Secretary General at the European DIGITAL SME Alliance, said:

“EU tech policy lead Henna Virkkunen’s pledge to position Europe at the forefront of the AI race is a vital step toward building AI systems and a technological stack made in Europe. This move signals a paradigm shift toward an Investment Commission, with digital SMEs ready to drive Europe’s technological sovereignty forward.”

Standards and interoperability also emerged as critical enablers of a collaborative digital ecosystem. By promoting open, interoperable systems, SMEs can ensure that Europe remains competitive while empowering smaller businesses to generate solutions with far-reaching impacts.

The DIGITAL SME summit also explored the intersection of digitalisation and sustainability, addressing how the twin transitions of green and digital transformation can complement each other. SMEs called for more support to develop sustainable solutions that reduce environmental impact while enhancing competitiveness.

One of the main takeaways from panelists is that we urgently need investment for a European technology stack, which will provide a foundation on which European companies can build innovative solutions, and enable the realisation of European technological sovereignty.

To celebrate the achievements of European SMEs, the DIGITAL SME Awards recognised companies making a positive impact in three key areas: green solutions, upskilling, and societal benefit. These pioneering SMEs are setting an inspiring precedent for the broader industry by demonstrating the power of innovation to solve pressing challenges while upholding European values.

In her closing remarks, Henna Virkkunen, Execuitive Vice President for Tech Sovereignty, Security and Democracy, confirmed her commitment to accelerating digital innovation in Europe, reducing burdens for European innovators, and building a Europe that is stable and secure.

Welcoming this commitment, Sebastiano Toffaletti added: “Digital SMEs hope that Virkkunen will shift the focus of the Commission: from regulating tech to building tech. Technological sovereignty can only be achieved with an ambitious industrial strategy. The public and private sectors must pool resources and work together to build a technological stack that empowers European businesses, citizens and administrations. From connectivity, to computing power, data storage, online marketplaces and AI, Europe can no longer rely on foreign services. It must build its own Eurostack.”

With the conclusion of this year’ summit, the European DIGITAL SME Alliance reaffirmed its commitment to supporting SMEs as the driving force behind Europe’s digital leadership. As the EU prepares for a new mandate, the summit’s insights provide a clear roadmap for empowering tech SMEs to shape a vibrant, competitive, and technologically independent digital future for Europe.