Evaluating the Impact of the Second Funding Period of the Digitalprämie Berlin:

Insights into SME Digitisation, IT Security and Policy Implications

Abstract

This article evaluates the second funding period of the Digitalprämie Berlin, a public grant supporting the digitization of SMEs. Expanding on the first phase’s findings, the study assesses key outcomes of the second period (15.08.2022 – 31.03.2023), including funding distribution, sector engagement, and investment trends. Results show a shift towards larger projects and increased participation from less-digitized industries, suggesting reduced information asymmetry. IT security and automation remain major investment areas. Despite challenges in measuring digitization progress, self-assessment data indicate a perceived positive impact on business processes. The study highlights policy implications, recommending simplified application processes, standardized evaluations, and AI-driven automation to improve funding efficiency. Findings emphasize the importance of targeted public funding in enhancing SME competitiveness, resilience, and innovation in a digitized economy.