April, 25, the IT Committee met with the World Bank team, which supports the Ukrainian government with innovation policy reform to inform the World Banks’s wider diagnostics exercise of the Ukrainian innovation and entrepreneurship (I&E) ecosystem.
By performing the I&E ecosystem diagnostics the team seeks to assess the status of R&D, innovation and entrepreneurship policies, the research governance system, market and business environment, availability of risk and traditional finance, access to qualified human capital and reliable infrastructure in the country as well as the potential for Ukrainian firms to innovate and grow. The goal is to identify constraints and pain points in the above areas. The team will use the diagnostics to determine specific areas of support and interventions that could alleviate some of the growth constraints and improve the entrepreneurial and innovation ecosystem.
IT Committee delivered to the WB the main activities it is currently focused on:
- Developing Creative economy and Innovation in Ukraine is top of mind for IT Outsourcing and Start-Up/VC Business;
- Historically and culturally, Ukraine has the potential to become IT/Innovation hub (creativity, critical thinking, historically good fundamental education, literacy of people etc.);
- The two pillars of emerging Innovation/Creative economy sector in Ukraine are IT Outsourcing (export oriented IT services) companies and Start-up/VC business. They are also the ones that ensure integration of Ukraine into world’s Technology and Business. This can be used as a base for global Innovation driven product and service businesses;
- In order to untap the Ukraine’s potential fully and get fast-forward movement towards Innovation we need Basics fixed:
- Ensuring that creation/driving of innovation businesses is attractive for Ukrainians as well as foreign experts/investors;
- Ensuring IT Outsourcing, as a basis of the pyramid in the ecosystem, has stable conditions. Important to understand that besides other advantages, outsourcing today is the holder/keeper and “producer” of IT talents. Otherwise, this sector can be damaged and thus puts at risks any other innovation initiatives and Ukraine will lose main assets (professionals).
Our mid-long term vision: develop a new way of employment/contracting people who provide intellectual services.
Short term: maintaining current system of cooperation with PE for the period until the new system is developed, piloted and proven to work.
This is a critical requirement, as any radical change here can be damaging. It can force 20% of professionals, which constitute 50% of revenue to seek employment in other geographies, due to better overall conditions (infrastructure, education, etc.). This process will be out of companies’ control; this will be the reaction of individuals.