Louise O'Reilly
Question:141. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment the current rate of basic level digital intensity of Irish SMEs. [13034/23]
View answerTuesday, 21 March 2023
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Embracing digital technologies is crucial for our continued economic growth and productivity as well as contributing to climate action. A competitive, innovative and resilient enterprise base is essential to provide high-quality jobs and employment opportunities.
As outlined in the National Digital Strategy and the White Paper on Enterprise, our objective is that at least 90% of our SMEs will reach at least a basic level of digital intensity by 2030. We also want at least 75% of enterprises to be using cloud, AI and big data by 2030.
According to the European Commission's 2022 Digital Economy and Society Index, Ireland is ranked fifth in the EU with 64% of Irish SMEs having a basic level of digital intensity. This is higher than the EU average of 55%. We are determined to continue to increase the level of digital intensity in enterprises.
The Digital Intensity Index (DII) is a composite indicator measured by the European Commission. It is derived from the survey on ICT usage and e-commerce in enterprises. With each of the 12 included variables having a score of 1 point, the DII distinguishes four levels of digital intensity for each enterprise: count of 0 to 3 points entails a very low level of digital intensity, 4 to 6 – low, 7 to 9 – high and 10 to 12 points – very high. A basic level entails the use of at least four of twelve selected digital technologies. The DII composition varies between different survey years, depending on the questions included in the survey.
To boost the uptake of digital technology in enterprises, in 2022, Government established the Digital Transition Fund as part of Ireland's NRRP. This is an €85 million multi-annual fund which will run until 2026. Through the Digital Transition Fund, we will increase digitalisation of all businesses across products, processes, supply chains and business models. This will bring about productivity gains, access to new markets, increased innovation and improved competitiveness as well as increases in digital intensity.
In addition, a new Digital Portal is being developed to help businesses to self-assess their digital needs as well as signposting to training, resources, and funding option. The Digital Portal will set out the key benefits of digital for businesses, signpost to supports, and assist businesses on the digital adoption journey.