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IT Market Yuriy Sivitsky

IT Market Yuriy Sivitsky. 200 8. Ukraine: growing economy. 2. Basic social and economic indicators, cumulative growth (2002 as 100%). Data: State Statistics Committee of Ukraine. Ukraine: IT market growth forecast. 3.

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IT Market Yuriy Sivitsky

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  1. IT MarketYuriy Sivitsky 2008

  2. Ukraine: growing economy 2 • Basic social and economic indicators, cumulative growth (2002 as 100%) Data: State Statistics Committee of Ukraine

  3. Ukraine: IT market growth forecast 3 World Information Technology and Services Alliance: Ukraine’s ICT market reached $10 Bn. in 2007 with the average annual growth of 20% Data:World Information Technology and Services Alliance

  4. Ukraine: IT market growth forecast 4 • ICT market growth by major sectors 14% 16% 20% Data:World Information Technology and Services Alliance

  5. Ukraine: customer types 5 Data:World Information Technology and Services Alliance Actual and forecast, mln. USD

  6. US market: competition differentiation 6 Source: Softline, industry experts

  7. What shall be done? • A Strategy to Develop IT and High Technology Industry in Ukraine • Develop comprehensive national innovation strategy. • Regulatory incentives. • Heavily invest into the human capital. • Encourage knowledge transfers through industrial clusters. • Proceed with the liberalization of the telecommunications industry. • A comprehensive national vision on science and technology parks (STPs). • STPs management. • STPs tax concessions. • STPs technology infrastructure. • Special customs regimes in STPs. • Facilitate start ups of innovation companies. • International promotion of STPs. • Improve Ukraine’s investment climate. • Advance integration of Ukraine into the global economic community. • Build trust of domestic and international business community into Ukraine.

  8. STPs tax concessions. • tax holidays are widely used to expand the pool of potential investors, the magnitude of the impact (unless tax concessions are extremely generous) is rather modest. Investors prefer to have stable regulatory and taxation rules to tax holidays that may not be sustained in the long-run. Thus, a better option for the government is to provide part of the initial infrastructure needed for the STPs and liberalize taxation procedures instead of maintaining STPs tax preferences that may be infeasible under tight state budget constraints.

  9. Thank you Yuriy Sivitsky +38067-5380012 Yuriy.sivitsky@softline.kiev.ua

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