Digital investment: trade associations launch an incentive scheme for micro and small businesses

To give a boost to digitalisation of micro and small businesses, professional practices and third sector organisations through a direct, straightforward and multi-year grant. This is the objective set by Investo Digitale, the incentive proposed to the government for the forthcoming Budget Bill by Assosoftware, AIIP, Confartigianato, Confcommercio, Confimi Industria and Confprofessioni. The initiative covers software, cloud computing, artificial intelligence and cybersecurity, and funds not only the purchase but also implementation, training and consultancy. According to the promoters, existing schemes have so far focused primarily on tangible assets and are often too complex for less structured organisations.

The idea behind Investo Digitale arose in response to the need for Italian SMEs to raise the capital required to invest in digital technology. A survey by the Piepoli Institute of 1,232 companies with between two and 99 employees shows that for 56 per cent of businesses, the main obstacles are precisely high costs and a lack of incentives. 76 per cent also state that they would use a government voucher if it were issued through simple procedures and with a discount or direct debit from the supplier. This figure rises to 94 per cent amongst member companies. Finally, 70 per cent believe that Investo Digitale would make a tangible difference to their competitiveness within three years.

The investment priorities of the companies surveyed include artificial intelligence and process automation (30 per cent), ERP management software (20 per cent) and administrative/accounting software (11 per cent). The main benefits that companies expect to derive from the incentive, on the other hand, are time savings (22 per cent), a reduction in operating costs (21 per cent) and increased productivity (19 per cent).

Investo Digitale aims to become a cross-cutting policy capable of boosting the productivity of the entire economic system and is based on a commitment of public resources over a three-year period. According to the promoters’ estimates, the scheme could reach 578,496 beneficiaries and mobilise 6.48 billion euros in investment, with a leverage effect of 1.79 euros for every euro of public funding.

Under the baseline scenario, the productivity of the firms involved would increase by between 2.8 per cent and 3.7 per cent, with a cumulative impact on GDP of between 0.45 and 0.65 per cent, whilst in the accelerated implementation scenario, the effect could reach 0.75–0.95 per cent of GDP.