Successful product companies are not just about innovation; they are about stability, job creation, and strengthening the economy. However, for the product-based IT sector in Ukraine to compete on the global market, the right conditions are essential.
What is holding back the development of product companies?
- Access to capital. Most venture capital investments are directed toward outsourcing rather than the creation of proprietary products.
- Lack of tax incentives. Product companies often lack special conditions for development.
- Insufficient export support. Most sales markets are outside of Ukraine, yet companies struggle to receive assistance in entering the international arena.
How should the government act?
To create a favorable environment for product companies, the following is needed:
- Financial support. Special investment programs for companies developing their own products.
- Educational initiatives. Implementation of training programs for the development, marketing, and global sales of IT products.
- Intellectual property protection. Creation of an effective system for patenting and combating plagiarism.
A portrait of government support in successful countries
In countries where the IT sector is actively developing, the following mechanisms exist:
- Tax breaks. Product companies receive reduced rates for innovative developments.
- Government procurement. Utilization of local IT products in the e-government sector.
- Startup support funds. State funding for strategically important sectors.
Ukraine has every chance to create its own ecosystem for the development of product companies. However, this requires not only entrepreneurs but also active government policy.
It is time to transition from outsourcing to creating our own innovative products! 🚀
Yuriy Syvytskyi, member of the Supervisory Board of Intecracy Group, expert at Software Ukraine