Digital transformation, cybersecurity, and digital resilience are becoming priorities at the European Union level. Achieving these goals is not only a goal for the EU, but also for private companies, which can finance projects in these areas through various financial and grant schemes. So what are the current options for financing cybersecurity and digital transformation?
Given the major trend toward automation, digitization, and growing interest in artificial intelligence, many professions may disappear in the coming years. Repetitive tasks are particularly at risk, as they may be partially or completely replaced by artificial intelligence and digital tools within a few years. It is therefore essential to prepare the technical and technological infrastructure and train people for the digital transformation of society as a whole. The trend towards digitization is generally confirmed and supported by a number of studies, research reports and reports, including those of the European Union.
When financing digital transformation, it is good to be familiar with strategies and plans at both national and EU level, as these determine the focus, content and scope of instruments (financial and non-financial). Grants and subsidies are one of the main instruments for achieving development policy objectives for the European Union and beyond. This is also the case in the Recovery Plan, which consists of two levels – reform (the aforementioned strategies, plans and legislative settings) and investment (grants and subsidies).
However, the digital transformation also brings with it a number of shortcomings and threats. The response to these threats is to ensure cybersecurity and the protection of data and information. The European Union recognizes the importance of both issues (cybersecurity and digital transformation) and is focusing on them. One of the European Commission's main priorities is a Europe fit for the digital age, which includes support for digital transformation through investment in businesses, research and innovation, data protection reform, strengthening the position of people with the skills needed for the new generation of technologies, and introducing appropriate rules. We can therefore expect the European Union to promote digitization and cybersecurity not only through new legislation (reforms) but also through extensive funding opportunities for digitization and security projects (investments). The fact that digital resilience and cybersecurity are priorities is also evidenced by the new NIS2 directive on cybersecurity, which is due to be approved in Q4 2022.
However, the European Union is not the only one whose priority is and will be digital transformation and security. At the national (Slovak) level, we can also 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. According to 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 the purchase of technology, and training and education courses to improve cyber security. This need will soon become a reality.
What will be the funding options for projects in the field of digital transformation and cybersecurity?
Under the Digital Europe program, we can expect the following in this programming period:
- €1.6 billion for cybersecurity
- This funding is intended to help strengthen cybersecurity coordination between the tools and data infrastructures of EU Member States and to promote the deployment of cybersecurity across the economy.
- €580 million to improve digital skills
- €1.1 billion to ensure the widespread use of digital technologies across the entire economic and social spectrum.
Some interesting calls in the field of cybersecurity, such as support for information and cybersecurity in healthcare facilities, have already been opened. We expect more in the coming months. Specifically, in the area of the "European Cyber-Shield" and in the area of supporting the implementation of relevant EU legislation. Overall, seven calls are expected in 2022 in these areas, with up to €184 million available.
Under 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, digital economy development, digital skills improvement, and others.
At the end of 2022, we expect calls for proposals to be announced through which it will be possible to apply for Innovation Vouchers and Digital Vouchers. These are already familiar to many entrepreneurs, as similar vouchers have become attractive, popular, and relatively common tools for financing the development or audits of companies in recent years. The call for applications for vouchers will be announced by the Government Office of the Slovak Republic.
Financing digital transformation and ensuring data and information protection should therefore not be difficult. Prepare for the future with us. This is the perfect opportunity.
