Innovation or Digitalisation?
When researching AI funding in Europe, I discovered a key distinction: innovation vs. digitalisation. If you're navigating this space, it matters.
What I Learned While Navigating the EU's Tech Funding Landscape
When researching European funding instruments for AI-driven tools, I stumbled upon something that changed how I look at digital strategy: the European Union makes a very clear distinction between innovation and digitalisation.
This might sound academic—but if you're building products, offering AI services, or advising clients within the European ecosystem, it's a distinction that directly shapes what kind of support, partnerships and funding routes are open to you.
I wrote this piece to share what I learned, and to offer a reference point for others who are navigating the same terrain.
The Strategic Divide: Innovation ≠ Digitalisation
The EU treats innovation and digitalisation as two distinct tracks:
- Innovation is about creating something new. It involves risk, experimentation, uncertainty, and often aims to open up entirely new markets or capabilities.
- Digitalisation is about applying existing digital technologies to improve how we work, serve customers, or run organisations.
Innovation creates.
Digitalisation applies.
If you're developing a novel AI-based medical assistant, you're innovating. If you're implementing an existing chatbot framework in a logistics company, you're digitalising. This difference matters because it determines which EU programme applies to you.
Two EU Programmes, Two Different Worlds
| Programme | Focus | Typical Projects |
|---|---|---|
| EIC (European Innovation Council) | High-risk, breakthrough innovation | New AI models, novel hardware, deep tech |
| Digital Europe Programme | Strategic digital capacity & adoption | Skills, infrastructure, cybersecurity, AI use |
The EIC offers grants and equity to scale new technologies. It supports startups, spinouts, and R&D-heavy projects. Think: building the next generation of AI.
The Digital Europe Programme invests in deploying proven digital technologies—AI, supercomputing, cybersecurity, digital skills. Think: helping companies and public services adopt what's already available.
Why It Matters
Most people (myself included) treat innovation and digitalisation as overlapping terms. But the EU doesn’t. And if you're trying to:
- apply for funding
- position your AI product
- align with European strategy
...then recognising which "track" you’re on helps tremendously.
This distinction is not just bureaucratic—it's strategic.
Many national governments don’t make this split explicit in their local funding logic. Programmes blur the lines. But if your ambitions point to Europe, understanding this architecture gives you an edge.
Questions That Clarify Your Track
Here are a few questions I now use in strategy conversations:
- Are we building something that doesn’t exist yet?
- If yes → likely EIC.
- Are we applying digital tools to transform an organisation or sector?
- If yes → likely Digital Europe.
- Do we need capital for high-risk technology development?
- If yes → EIC.
- Do we need infrastructure, training, or support for applying AI?
- If yes → Digital Europe.
Some projects sit between the two. But in many cases, this framing helps clarify your positioning.
Final Thoughts
This split—between innovation and digitalisation—is baked into the EU’s funding logic, its strategy documents, and its investment vehicles.
Once I started looking through this lens, I saw it everywhere. And I realised: if you're working on AI, digital services, or anything at the intersection of tech and society, your work fits into this architecture too.
Understanding that helps you:
- choose your funding strategy
- find the right partners
- align with long-term EU priorities
If this helped you think more clearly about your next steps, I’d love to hear from you. I’m still exploring this landscape—and building tools to make it more accessible for others.
Rob Hoeijmakers
Rob Hoeijmakers