The software product IT industry is a strategic resource for the country's economy. Successful startups and technology companies create high added value, provide stable jobs, and attract foreign investment. However, Ukraine currently lacks systematic state support for product companies. What needs to change to foster their development?
How does the state support IT business globally?
Successful examples of state support can be seen in the following countries:
- USA: venture capital funds with special tax incentives, state grants for startups.
- Estonia: simplified taxation system for IT companies, digital residency.
- Israel: active state funding for technological R&D centers.
Ukraine needs to utilize best global practices while adapting them to local realities.
Key challenges of the Ukrainian software product IT industry
- Lack of tax incentives. Most products are developed abroad because the tax burden in Ukraine does not facilitate business scaling.
- Limited access to financing. There are few venture capital funds in Ukraine, and banks are reluctant to provide loans to IT companies.
- Bureaucratic obstacles. Launching a technology business is often complicated by regulatory requirements.
What can the state do?
- Introduce tax incentives. For example, reduced taxation for product companies for the first 3-5 years of operation.
- Fund R&D centers. State grants can stimulate the development of innovative solutions.
- Support technology exports. Ukrainian companies need support programs to enter the international market.
Without state support, product companies are forced to seek better conditions abroad. If Ukraine aims to become a technology leader, it must create a favorable environment for business.
Time for decisive changes! 🚀
Yuriy Syvytskyi, member of the Supervisory Board of Intecracy Group, expert at Software Ukraine