The IT sector tripled its share in Moldova's GDP in 2023, compared to 2015, and this impressive jump is due to the resident companies of the Moldova Innovation Technology Park (MITP)
With a contribution of almost 80% to the entire national IT sector, MITP residents are the engine of this accelerated growth. This is one of the main conclusions presented at the 6th SUM IT UP event called Global Connect. The event gathered experts, industry leaders, investors and innovators, demonstrating Moldova's evolution towards the status of a global technology center. The event highlighted the impressive evolution of MITP in a global context. Currently, Moldova IT-Park has more than 2000 resident companies, which represents a 6-fold growth in 7 years. The largest increase in the number of new companies (380) in the Park occurred in 2024 due to the expansion of the list of authorized activities in the Park. Of the 1,605 companies established since the launch of the IT Park, 178 are foreign capital companies from 33 countries. According to MITP Administrator Marina Bzovîi, the first 7 countries with the largest number of investors attracted by the favorable tax regime offered by MITP include Romania, Ukraine, USA, Germany, Russia, Great Britain and Turkey. At the same time, Romania and Ukraine are ranked first due to the impact of the regional crisis and changes in fiscal policy. Romania is ranked first, and significant growth began in 2023, after the elimination of tax breaks for IT professionals in Romania, which caused many companies to refocus on Moldova. Companies from Ukraine have dramatically expanded their presence in Moldova since 2022, after the war began. “Moldova has become a safe and stable place for local and international businesses. This attractiveness is also reinforced by the extension of the state guarantee until 2035 and the operation of the IT Park until 2037, which provides companies with confidence and security for the long term,” the MITP Administrator said. It was emphasized that in the first half of 2024, the revenues of IT Park residents amounted to 365 million euros, and according to forecasts, these revenues could reach 800 million euros by the end of the year. In 2023, approximately 62% of residents reported an increase in revenues compared to the previous year. It was noted that in 2023 Moldova recorded the highest growth in IT services exports since 2015, compared to neighboring countries and regional competitors such as Ukraine, Romania, Estonia and Latvia. Moldova's IT services exports increased 10 times, compared to 2015. Thus, Moldova has become a regional leader. “Moldova is a country with exceptional potential for innovation and development of digital products. We have talented people and the opportunity to turn the country into a leading regional destination for top-notch technology products and services. The Moldova Innovation Technology Park plays an important role in this transformation. Now, more than ever, we can do business at home more easily and efficiently, offering attractive opportunities to both local entrepreneurs and foreign investors. To ensure that we remain competitive and able to face global technological change, we are going to allocate €5 million in next year's budget for the development of start-ups in this area. This is a clear signal that the government supports innovation and seeks to attract more foreign investments,” Prime Minister Dorin Recean said. For his part, Economic Development and Digitalization Minister Dumitru Alaiba said that according to the GDP growth data for the second quarter and the first half of 2024, there is a slight recovery and acceleration compared to the previous quarter. At the same time, he drew attention to the growth of the ICT sector. In the first half of the year, it amounted to 7.9%. “More importantly, the ICT sector's contribution to GDP is approaching 8% - a clear indicator that the sector is on the upswing. This is not a temporary peak, but a steady and confident growth. It is remarkable that about 30,000 people have such a significant impact. Our goal now is to replicate this pace across the economy. The allure lies in the ability of digital solutions to transform other industries and I firmly believe that we can achieve this,” emphasized Dumitru Alaiba. For the first time, SUM IT UP discussed success stories of MITP resident companies that have been acquired by international players. These are Cegeka, Pentalog and Amdaris. Also for the first time, a special alley was organized at the event where MITP residents presented their innovative products. Among the companies present were Langly, Parkopedia, ViarLive and Racheta Production, giving attendees the opportunity to explore the journey of these brands as they expand into international markets. “You are at the forefront of what's coming next. Here I was shown some applications that are already in use, and some MITP residents are presenting their software in San Francisco, in Silicon Valley. These solutions are exciting and inspiring for everyone. Moldovan products, IT solutions from Moldova are now spread everywhere. In fact, I found out that Moldovan IT solutions are even in San Francisco streetcars. This is really impressive,” said Ali L. Ezzatyar, Deputy Director of the USAID Mission in Moldova. As noted, today MITP resident companies employ more than 22,000 people. In fact, in 2023, 33% of MITP residents reported an increase in the number of employees compared to the previous year. Another indicator is the fact that 4.4% of Moldovan employees work in the ICT sector, which is the second highest percentage among all European countries after Estonia. At the same time, the number of foreign employees has grown significantly in recent years, reaching a 10-fold increase in 2023 compared to 2018. According to PayWell 2023, about 81% of IT companies' costs are for employee compensation. In addition, these companies offer benefits and bonuses to attract and retain talent, with an average annual value of €1,000 for these benefits. SUM IT UP: Global Connect - powered by MITP took place within the StrategEast State and IT Eurasian Forum within Moldova Business Week 2024, organized by the Investment Agency of Moldova in partnership with the Ministry of Economic Development and Digitalization. SUM IT UP is an event held since 2021 and organized by the Moldova Innovation Technology Park, which presents the evolution of the local IT sector and its impact on sustainable economic development. // 19.09.2024 - InfoMarket.
