Transcript Emerging markets for SEE

Emerging ICT Markets in
South East Europe
Goran Radman
Microsoft Corporation
Chairman SEE
EU Lisabon Agenda
• EU 2010: US benchmark
Total Economy
1990-1995
EU
US
2.3
1.1
1995-2001
EU
US
1.7
2.2
ICT Producing Industries
ICT Producing Manufacturing
ICT Producing Services
5.9
8.4
4.8
8.1
16.1
2.4
7.5
11.9
5.9
10.0
23.7
1.8
ICT Using Industries
ICT Using Manufacturing
ICT Using Services
2.0
2.4
1.8
1.2
-0.6
1.6
1.9
1.8
1.8
4.7
0.4
5.3
Non-ICT Industries
Non-ICT Manufacturing
Non-ICT Services
Non-ICT Other
2.1
3.6
1.2
3.2
0.3
2.7
-0.5
1.2
1.0
1.6
0.5
2.1
-0.2
0.3
-0.3
0.7
Ref: Van Ark, Groningen Growth and Development
Centre and The Conference Board
ICT - producing manufacturing and ICT - using services
Labour productivity by Industry Group on the basis of ICT taxonomy, EU and U.S., 1995-2001
• Agenda 2004-09: Jobs, Competitiveness and Innovation
• New Competitors: India and China
SEE Within the EU
Source: IDC WW Black Book, November 2004
25.000
20.000
15.000
10.000
5.000
0
Italy
Spain
Belgium
Austria
CEE
SEE
Ireland
Portugal
EU 12
Russia
SEE Region is slightly larger than Ireland and Portugal Markets,
but holds significantly more potential
SEE Invests More
2001
1,24%
2002
1,33%
2003
1,48%
2004
1,55%
2005
1,65%
2006
1,74%
2007
1,82%
2008
1,89%
YE 2000-2008
Investment driving factors: Infrastructure, privatization, EU
Source: IDC IT Economic Impact Study, 2005.
2000
1,12%
SEE Grows Faster
13,0%
S&M
Romania
10,0%
Macedonia
10,0%
Croatia
Source: IT Market Growth IDC / EITO
12,0%
Bulgaria
9,0%
Slovenia
7,0%
0%
5%
10%
15%
Everage IT growth in EU 15 is less than 2% and 3% in EU 25.
SEE Creates Jobs
Source: IDC IT Economic Impact Study, 2005
150.000
120.000
90.000
60.000
30.000
2004
2005
IT Hardware
Other IT Professionals
2006
2007
2008
Other Services and Channels
Total Software Employees
General IT employment will increase by 35.000 new jobs to total over
148,073 in 2008. Over 50% of these jobs will be software or software
related employment
…But Less Networked
COUNTRY
SCORE
RANK
United States
2,02
1
Singapore
1,89
2
….
……
…..
Slovenia
0,34
35
Croatia
-0,23
57
Romania
-0,23
58
Bulgaria
-0,31
64
Serbia & Montenegro
-0,63
80
Macedonia
-0,67
82
Moldova
-0,78
94
Bosnia and
Herzegovina
-0,87
97
Albania
-1,04
106
Key factors:
 Infrastructure
 Readiness
 Use of IT
Source: INSEAD,
Networking Readiness Index
Less Developed
And Less Competitive
GROWTH COMPETITIVENESS
BUSINESS COMPETITIVENESS
Finland
USA
Sweden
…..
Estonia
Slovenia
Czech Rep.
Hungary
Slovakia
Poland
……….
Bulgaria
Croatia
Romania
Serbia & Mont.
Macedonia
Bosnia & Herz.
Albania
USA
Finland
Germany
……
Estonia
Czech Rep.
Slovenia
Hungary
Slovakia
Poland
………
Croatia
Romania
Bulgaria
Macedonia
Serbia & Mont.
Bosnia & Herz.
Albania
1.
2.
3.
20.
32.
38.
39.
41.
51.
58.
62.
67.
80.
85.
95.
100.
1.
2.
3.
LEADERS
26.
27.
32.
34.
39.
42.
NEW EU
MEMBERS
63.
67.
78.
83.
86.
94.
112.
SEE
Source: Global Competitiveness Report 2005-2006, WEF
SEE Main Focus Areas
 e-Government
Public service, efficiency,
transparency, cost reduction
 e-Business
Competitiveness, SME, innovation
 e-Inclusion
Education, curricula, skills
What we can do?
e-Government
SEE E-GOVERNANCE CENTER
 e-Government policy and institutional capacity
building support through shared expertise, best
practices and standards in public services
 Support for multilateral exchange of IT skills,
competencies and solutions
for public administration
 Replicate Tallin (Estonia)
EGC to Bled (Slovenia)
e-Business
BUSINESS-TECHNOLOGY CENTERS
IT entrepreneurship and innovative SMEs
support through local incubators
 Incubator as source of new IT ideas,
business solutions knowledge base and best
practice share-point
 BTC Varaždin (Croatia) as
model to be replicated
throughout the region
Multi-stakeholder Partnerships
for SEE
Government
Academia
Private
Sector
International
Community
Further Reading
 The Global Information Technology Report 2005 – 2006
(World Economic Forum)
 European Information Technology Observatory 2006
 The Economic Impact of IT (IDC)
2005 GLOBAL PC SOFTWARE PIRACY
PIRACY RATES
Country
2005
2004
69%
70%
Bosnia
Bulgaria
71%
71%
Croatia
57%
58%
Macedonia
70%
72%
Romania
72%
74%
Serbia/Montenegro
81%
81%
Slovenia
50%
51%
TOTAL SEE
67%
68%
2003
71%
59%
73%
52%
64%
PIRACY LOSSES
2005 $M 2004 $M
$
13 $
12
$
41 $
33
$
51 $
50
$
9 $
8
$
111 $
62
$
104 $
93
$
33 $
37
$
362 $
295
2003 $M
$
$
26
45
$
49
$
$
32
152