As the digital economy expands, a significant portion of companies’ competitiveness hinges on their ability to adopt and integrate digital technologies (DT) into products, processes, and business models. This is particularly pertinent for small and medium-sized enterprises (SMEs), which play a significant role in wealth generation and employment creation across various economic sectors. However, despite the evident advantages presented by this digital landscape, SMEs encounter substantial obstacles hindering their adoption of DT. These technologies are pivotal in facilitating SMEs’ transition towards sustainable and digitally-driven business models. Understanding the transitional phase of these enterprises holds paramount importance for both researchers and practitioners. The objective of this study is to evaluate the extent of DT adoption among European (EU27) SMEs and explore the correlations between that adoption and various company characteristics, such as economic activity, size, and innovation intensity. To achieve this goal, a sample comprising 11,866 SMEs from the EU was analysed, utilising correspondence analysis to discern relationships between the variables. The findings reveal a significant prevalence of European SMEs exhibiting a low intensity of innovation activity implementation. Moreover, there is a notable lack of adoption of digital technologies. However, a strong positive correlation is observed between the degree of DT adoption and innovation intensity. In light of these findings, further research is imperative to delve into potential patterns in DT adoption. Understanding methods to overcome barriers and promote measures and policies conducive to heightened technology adoption is crucial in enhancing the innovation level among European SMEs.