Supporting regional entrepreneurship through the adoption of innovative technologies

The modernisation of public administration is frequently mischaracterised as a purely technical challenge – a matter of procuring faster servers, sleeker interfaces or more sophisticated algorithms. This perspective, while seductive in its simplicity, obscures the profound institutional and political dimensions of digital transformation. A rigorous analysis of the entrepreneurial ecosystems in project beneficiary regions in Germany and Spain reveals that the primary barrier to innovation is not a scarcity of technology but a legacy of institutional design.

The current landscape is defined by fragmentation: data is trapped in administrative silos, processes are disjointed, and the user experience for the entrepreneur is one of friction (e.g. repetitive paperwork, bureaucracy and absence of one-stop shops) rather than support.

Within the scope of the present EU project, this report argues for the introduction of innovative technologies – specifically artificial intelligence (AI) – as , and not merely as an upgrade to existing IT systems. The strategic pivot is from a model of “digitisation”, in which paper processes are simply replicated on screens, to a model of “intelligent service”, in which the state proactively anticipates needs, automates compliance and empowers the user. These innovative technologies can enable disruptive service models – fundamentally new ways for entrepreneurs to interact with government – rather than merely making existing processes electronic.

This shift requires technology to be viewed through a socio-economic lens: code is not neutral infrastructure but a form of policy and governance, particularly in contexts where algorithms determine how public services are delivered. The architecture that is built today will define the relationship between citizens and the state for years to come.

Drawing on a comprehensive synthesis of regional expert analyses commissioned ad hoc, legal assessments and global best practices, this report identifies three critical shifts required to achieve this vision and shares recommendations grounded in the specific legal, operational and cultural realities of the target regions. They propose a path forward that balances the transformative potential of AI with the strict guardrails required by European values and regulations, so that efficiency does not come at the cost of rights.