Digitisation is transforming how we do business, creating new practices and generating opportunities. This is why accelerating innovation in SMEs, especially those outside the technology sector, is one of Europe’s top priorities. The EU-funded DigiFed project will develop a business model for the sustainability of the federation of digital innovation hubs (DIHs). Its model is based on collaborative investments and reduced innovation risks. The project will focus on cyber-physical and embedded systems with special emphasis on security and privacy, autonomy and human-machine interaction. Overall, the project’s aim is to provide SMEs the support needed to introduce digital technologies in their products and services. It will gather six DIHs from different countries and link with other DIHs and DIH networks to create an EU-wide offering of sustainable cross-border DIH services.