Leeds Beckett University - City Campus,
Woodhouse Lane,
LS1 3HE
The impact of digitalisation on international trade for SMEs
Read from Dr Mary Leung how the Interreg Complete In project investigated and analysed good practices that enabled European SMEs to benefit from the digitalisation of trade and about the key learning points for businesses in similar positions.
Good practices which enable SMEs to fully benefit from the digitalisation of trade have been implemented by municipalities and project partners in: Emilia-Romagna in Italy, Valencia in Spain, and Reggio Emilia in Italy. These good practices were investigated in detail as part of the Interreg Compete In project, of which Leeds Beckett University is a project partner.
Digital Trade and Sustainability
Firms trading digitally benefit from faster trade, lower costs, less trade barriers and greater resilience to disruption (OECD 2022). In times of economic turbulence, digitalisation is shown to make countries and firms more resilient (UNCTAD (2022) Digital trade: Opportunities and actions for developing countries). Export of global services declined significantly during the pandemic, but digitally deliverable services only experienced a 1.8% decline. To ensure Europe’s leading position in digital trade, the EU trade policy: An Open Sustainable and Assertive Trade Policy (2021) gives priority to support Europe’s digital agenda.
In collaboration with the Italian Foreign Trade Agency (ITA), Emilia-Romagna regional government provides the program “Go Digital”, which supported 150 SMEs in 2021 via short training workshops on ecommerce, advertising and web marketing. Participating SMEs focussed on exports through digital means and strategies, as well as overcoming and promoting cultural and organisational changes. This best practice was presented by Compete In project partner ART-ER. ART-ER Attractiveness Ricerca Territorio: an Emilia-Romagna Consortium Company created to promote the sustainable growth of the region through the development of innovation and knowledge, attractiveness and internationalization.
Resource building
The Digital District program, promoted as a best practice by Compete In Lead Partner Reggio Emilia Municipality, sits in the innovative and successful Reggiane Innovation Park. The program has developed technical and digital skills at all levels of local education, including the setup of a new human and technology training centre, providing a digital automation lab for advanced manufacturing, and a tech-up accelerator for start-ups and entrepreneurship. The Digital District program works with universities and other training institutions to equip new graduates with relevant digital skills and knowledge.
These qualified local or international people with extensive knowledge and skills in digital technology are retained and recruited to local companies through Reggio HUB. The program aims to enhance Reggio Emilia’s innovation system, retain talent and increase the competitive capacity of the region.
Market Intelligence and Networking
Most start-ups in the technological sector due to their initial small size need a healthy and supportive ecosystem to support expansion. Local government plays a crucial role to coordinate and integrate private and public stakeholders such as universities, social agents, and investment entities to network, exchange ideas, collaborate, and co-create the ecosystem for the SMEs. The Tech City launched by the Valencia Municipality in Spain is one of these initiatives that connect major actors to facilitate the growth and development of regional start-ups and entrepreneurs. The highly successful annual event Valencia Digital Summit showcases ‘the disruptive solutions’ from innovative talent and creates opportunities for entrepreneurs, innovators, startups, corporations, investors and policymakers to meet.
So, what can we learn from these ‘Good Practices’?
All three regions offer well designed business training in digitalization for SMEs or tailored courses to specific companies with some encouraging attention to underrepresented groups.
Programs in Reggio Emilia and Valencia have an interest in start-ups. Another common COMPETE IN strategy is mentorship / one-to-one advisory services for select SMEs on digitalization strategy or export action planning.
While Reggio Emilia are developing a long-term regional level strategy in the training, retaining and recruitment of a digitally literate workforce to support innovation and internationalization in the region, Valencia Municipality are building the platform to ensure network opportunities are available to all stakeholders.
All partners engage in a wide range of stakeholders from public (national trade agencies, local business associations and universities) and private sectors to provide training and resources for SMEs.
Dr Mary Leung
Dr Mary Leung is a Principal Lecturer in the Economics, Analytics and International Business subject group. She has extensive experience in teaching and leading courses at undergraduate and postgraduate level. She also supervises a number of PhD students in the international business area.
