Overview of Potential and Innovators from Ukraine

Ukraine is well known in Europe for qualified, affordable and available IT staff. With about 100000 IT-developers today ranks as no.1 IT destination in Eastern Europe. At the same time almost nobody knows about industrial high-tech solutions “Made in Ukraine”.There is huge potential from various sectors of IT and innovators across Ukraine.

Ukraine ranks in top 8 countries worldwide able to ensure complete cycle of aerospace manufacturing. It is in top 5 world producers of tanks, and it has also strong position in manufacturing of heavy industry and power equipment, complex engineering and turn key projects, and other sectors.
In 2016 Association of Industrial Automation of Ukraine together with Association of Innovation Development of Ukraine formed a national movement ‘Industry 4.0 in Ukraine’. The movement was positioned as the common platform for all hi-tech segments. Today we unified >60 companies and made a lot of promotion of world concepts like Industry 4.0 and Industrial Internet of Things.

 

So, in this overview we would like to present the Ukrainian potential in the segments driven by Industrial Automation and IT segments. With regards to expectation of our German partners we believe that Ukraine has good opportunities to grow together with main options as
1. The highest in Eastern Europe number of developers and excellent ratio of quality/price.
2. We are already integrated into global markets with 100+ international centers R&D. It means that we follow global trends including such in 4.0/IIoT domains and ready to be a part of global value chains in many industrial hi-tech segments.
3. We quickly develop strong local ecosystems per different hi-tech segments. It already exists in IT sector and we push other hi tech segments to develop it.

THE NATIONAL MOVEMENT ‘INDUSTRY 4.0 IN UKRAINE’

In July 2016 first 18 companies joined to national movement ‘Industry 4.0 in Ukraine’. They included the subsidiaries of worldwide companies as Microsoft, ABB, big local industrial End Users and local system integrators. Today the movement includes 65 members and it is still non government initiative managed by APPAU. The main statements of movement are fixed in the Chapter ‘Industry 4.0 in Ukraine’.They are as follows:

  • Ukraine should remain and grow its position as hi-tech developed country.
  • IT-industry is recognized as leaders in term of technologies as well as business practices.
  • It should be much better integration into worldwide & EU movements, as examples it cited the German Industries 4.0 and US Industrial Internet Consortium.
  • Market education & development of digital transformation road map per industry is fixed up as main priorities in short term period.

ECOSYSTEM OF INDUSTRIAL HI-TECH MARKETS IN UKRAINE:

Ukraine still survives difficult decades of national self-identification and break with post Soviet (Russian) imperia. Many liaisons among players in industrial hi-tech segments have broken because of non effective last governments and slow reforms, absence of Industrial and Innovation strategies at State level.

Machine-building sector could not survive the break of export to Russia and CEE countries and drop down since 2013. Other assets are still strong and attractive and demonstrate good changing dynamic.
1. IT sector is champion of growth with 25-30% of Compound Annual Growth Rate.

2. Ukraine’s technical education is the foundation of Ukraine’s hi-tech ecosystem.  Ukraine’s army of more than 90,000 IT professionals makes the country a leader in Central and Eastern Europe by the number of engineers and the number of graduates emerging into the labor market.

It’s absolutely clear that current capacities of Education System significantly exceeds the demands of local industry. So, being the European country with the lowest per capita GDP, Ukraine continues to be a donor of well educated young people for wealthier countries. This is the price for having non-effective governments during two decades.
But by taking a more pragmatic approach, it’s easy to conclude that this creates great opportunities for international companies searching for young talents, as well as for neighboring European countries.

3. Ukraine still has strong scientific potential. National Academy includes 160 Institutes with > 31 thousands of researchers. Even being degraded last years, many assets, works, studies and staff are very valuable in term of scientific level, staff availability and price.

4. Ukraine has huge and still not realized potential of manufacturing.More and more companies start to move the manufacturing facilities from China to Ukraine due to reasons of cost and proximity to EU.

 

 

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