Ukraine has been touting Diia City, a unique economic structure for IT businesses that it hopes would solidify the country’s position as a technological powerhouse.
Ukraine’s leader, Volodymyr Zelensky, made it clear on February 8th that, despite Russian forces on its borders, the nation is still open for work and that its objectives are more vital than ever. He said: “Don’t be afraid to dream. Three years ago, I was told I was crazy for wanting to build a digital Ukraine, but today, what we call ‘the state in a smartphone’ has become a reality, and the world is watching.”
Much of Zelensky’s address was devoted to Diia City, a preferential trade framework that provides employment, legal, and tax benefits to both domestic and international IT firms — and also their employees. He expanded on the matter by saying: “We want to transform Ukraine into a country of start-ups. Thanks to Diia City, we expect the technology share of GDP to grow from four to 10 percent by 2025, up to 16.5 billion US dollars, making us the largest tech hub in Europe.”
Human capital is the country’s most valuable resource
Recognizing that human capital is by far the most precious asset in the country, Zelensky went on to say that he wished to produce an atmosphere that would inspire talented Ukrainians to stay in their native country.
Furthermore, he also pledges to make Ukraine the most potent tech hub that will attract foreigners to Kyiv and other Ukrainian cities for employment.
What Minister of Digital Transformation Mykhailo Fedorov has to say?
By recognizing that Ukraine’s objectives would be dependent on a steady supply of talent, Minister of Digital Transformation Mykhailo Fedorov, one of Diia City’s significant architects, explained the country’s intentions to guarantee that the education system can fulfill the expectations of the tech industry. He says: “We want our kids to know how to learn, how to analyze information, to make decisions, to look for and to discover new solutions. We want kids to launch their first products while they are still in the classroom so that they are ready for the digital economy; that’s how we can create a country of entrepreneurs.”
Importance of creating an ecosystem for technology
According to Fedorov’s deputy, Alex Bornyakov, creating a technological ecosystem dependent on people, IT expertise, annual revenue, and business-friendly policies is crucial. He says: “Almost every great tech company in the world, when selecting their home base, focused on the protection of investment, low taxes, synchronization with global legislation, and human capital. We saw this, and we have tried to adapt it to the reality of Ukraine. That’s the foundation of Diia City.”