ŠAVŠ/TAČR Digital Czechia in a Digital Europe

• The inability of the Czech Republic to build an effective network that would support digital transformation in times of economic contraction could become a key problem for the competitiveness of Czech companies in the ensuing boom. • The Czech Republic must strive to set up a digital transformation system to encourage SMEs to implement higher-level digital projects as much as possible. Modernization of websites, presence on social platforms, renewal of ICT systems or a better interface for communication with suppliers are undoubtedly favorable steps, but in the long run this type of lower-level digitalization may seem to be quite insufficient. • The Czech Republic could apply the method of progressive favoritism based on the principle: the more complex digitalization project (or possibly more such projects) individual SMEs decide to implement, the greater the financial support (whether in the form of direct co-financing, grant or financial relief), which he/ she is eligible. • When setting a potential support measures, the system must take into account the fact that smaller companies (based on number of employees) usually have a higher level of financial constraints due to lower turnover and will require a higher level of financial assistance. • Similarly, when setting the potential level of support, the systemmust take into account the fact that the level of financial complexity of the implementation of digitalization projects differs significantly with respect to different sectors.