European SMEs improve digital competitiveness, report finds

Webidoo has published its SME - DigIX 2026 report on digital competitiveness among small and medium-sized enterprises in the European Union, putting the average score across the bloc at 44.57 points.

The findings suggest European SMEs are moving beyond basic digital adoption and are increasingly judged by the strength of their wider digital ecosystems. The index measures performance across five areas: technological infrastructure, research and innovation, digital skills, digital presence and eCommerce.

The latest average score rose from 42.88 in the previous edition, indicating broader progress across the 27 EU member states. The gap between countries is also narrowing as more markets move closer to the long-established leaders.

Denmark ranked first with 69.90 points, followed by Malta on 61.93 and Belgium on 61.33. Finland, Sweden and the Netherlands also formed part of the leading group.

The report argues that the strongest-performing countries do not rely on a single digital strength. Instead, they combine infrastructure, innovation, skills, online presence and eCommerce in ways that support more consistent business development among smaller companies.

Ranking shifts

Several countries posted faster gains than the leaders. Greece recorded the biggest overall improvement, rising by 5.86 points, while Estonia gained 4.67 points and the Czech Republic added 4.37 points.

Italy reached 42.11 points, up from 38.91, and remained in the group Webidoo classifies as Emerging Performers. The report points to particular momentum in areas likely to shape future competitiveness.

This matters because it suggests digital progress is spreading more evenly across the bloc. For SMEs, the data points to a business environment in which competitive position depends less on location and more on strategic choices about investment and organisation.

Innovation focus

Among the five categories in the index, research and innovation showed the largest improvement, rising by 8.79 points across Europe. Technological infrastructure followed with a 5.11-point increase.

This marks a shift from an earlier phase of digital transformation, when establishing an online presence and digitising business processes were often the main priorities. Future growth, the report argues, depends more heavily on a company's ability to innovate and build the internal foundations needed for more advanced tools.

In the research and innovation category, Estonia recorded the strongest gain at 32.37 points. The Czech Republic followed with 25.06 points, while Lithuania added 18.94 points and Italy gained 18.59 points.

By contrast, digital presence and digital skills posted more moderate improvements. That may indicate a higher level of maturity in those areas across Europe, making them less of a differentiator and more of a baseline requirement.

Ecommerce factor

Ecommerce also features prominently in the index as part of the mix that separates stronger performers from weaker ones. The findings suggest readiness to sell online remains an important marker of how effectively SMEs can turn digital investment into commercial results.

The broader argument is that businesses gain less from adopting isolated tools than from joining up technology, staff skills and processes. In this view, digital transformation is becoming less about acquiring software and more about building systems that can support sustained change.

Artificial intelligence is presented as the next major influence on SME development, but only where businesses already have the basic structures in place. Firms without the necessary infrastructure, skills and internal organisation are less likely to benefit fully from AI adoption, according to the report.

Across Europe, that creates a two-speed challenge for smaller businesses. Many have already covered the first steps of digitisation, but the next stage appears to require more deliberate planning around investment, organisational design and innovation capacity.

For policymakers and business support groups, the results provide a fresh indication of where intervention may have the greatest effect. Markets that improve infrastructure and innovation conditions may be better placed to help smaller firms close the gap with the region's top performers.

The report was produced by Webidoo Insight Lab and covers all 27 EU member states. It is the fourth annual edition of the SME - DigIX study.

Giovanni Farese, Chief Executive Officer of Webidoo, said: "SME - DigIX 2026 confirms that European SMEs are entering a new phase of digital transformation. Today, adopting digital tools is no longer enough. The companies that will succeed are those capable of integrating technology, skills and innovation into a coherent business strategy. Artificial intelligence represents an extraordinary opportunity, but it creates value only when built on solid foundations. The competitiveness of SMEs will not be determined by who adopts the most technology, but by who is able to transform technology into productivity, growth and continuous innovation."