Lviv IT Cluster Holds a Meeting with the Special Representative of the United States for Ukraine’s Economic Recovery, Penny Pritzker

On April 2nd, the Special Representative of the United States for Ukraine’s Economic Recovery, Penny Pritzker, and the U.S. Ambassador to Ukraine, Bridget A. Brink, met with the Lviv IT Cluster team. During the meeting, they discussed the crucial role of the technology industry in Ukraine’s economy during the war, the key challenges facing the sector, and its potential for Ukraine’s recovery.

The American delegation also included Deputy Special Representative of the United States for Ukraine’s Economic Recovery, Tyson Barker; Senior Advisor to Penny Pritzker, Kerry Kraemer; and the Trade Representative of the U.S. Embassy in Ukraine, Sarah Nickel. In addition, Valeriy Dobrovolsky, Head of the IT, Engineering, and Creative Industries Development Team of the USAID Competitive Economy Program in Ukraine, joined the meeting. In the direction of cooperation between the USAID agency and Ukraine, official visits by representatives of the United States are one of the important steps for engaging with stakeholders in priority sectors, such as the Lviv IT Cluster. In the realm of collaboration between USAID and Ukraine, official visits by representatives from the United States stand out as crucial steps in engaging with stakeholders in priority sectors, such as the Lviv IT Cluster.

As the largest association of tech companies in Ukraine, the Lviv IT Cluster has the ability to comprehensively analyze the state of the tech industry in the third year of full-scale war. Our team shared with Special Representative Pritzker the main trends in the industry’s development, as well as data from IT Research Ukraine – the most extensive study on the state and prospects of the tech industry in Ukraine. According to the study, the technology sector is one of the key drivers in Ukraine’s economy. The industry accounts for nearly 5% of the country’s GDP. And the economic impact of its activities amounted to almost $13 billion in 2022 and over $14 billion in 2021. Additionally, in 2022, the industry maintained over 600,000 jobs in tech and adjacent areas.

“For us, the meeting with our partners from the USA is very valuable. The United States has been a consistent leader in importing Ukrainian computer services and has made a significant contribution to the development of our tech industry. However, while revenue from exporting computer services steadily increased over the past ten years, in 2023, this positive trend changed. Not only did the overall revenue volume decrease, but also the demand for Ukrainian tech services abroad. Additionally, the industry faced other challenges, such as the slowdown in educational development and difficulties in negotiating new contracts with foreign partners. All of these are consequences of the full-scale war. However, the Lviv IT Cluster is constantly working to overcome these challenges,” says Stepan Veselovskyi, CEO of the Lviv IT Cluster.

For over eight years, the community has been working on updating bachelor’s programs at leading universities in Ukraine. Education is crucial for the development of the tech industry, which largely depends on human capital. Currently, over 4,500 students are enrolled in 19 modernized degree programs. The next step will be the establishment of a powerful Research Center for students in engineering specialties in Lviv to stimulate the creation of new products, especially in complex niches such as deep tech.

Aimed at fostering the startup ecosystem and improving international collaboration, the Lviv IT Cluster has been organizing the IT Arena tech event for a decade now. IT Arena stands as the largest English-speaking tech event in Eastern Europe. The community shared with the American delegation that over the past decade, the event has united over 50,000 tech professionals from more than 60 countries. Moreover, more than 1,000 startups had the chance to participate in the Startup Competition. In 2023 alone, participants received additional funding of $410,000 on top of the main prize fund.

In addition, since 2020, the Lviv IT Cluster has implemented a series of transformative projects aimed at developing the technology sector in Ukraine with the support of the USAID Competitive Economy Program in Ukraine. Thanks to these initiatives, Ukrainian tech companies and startups have secured new export contracts, created new job opportunities, and attracted venture investments, fostering the development of the tech ecosystem, entrepreneurship, and talent growth.

“The technology sector is one of the most competitive industries in the Ukrainian economy and has significant potential to create a large number of new jobs. That is why the USAID Competitive Economy Program in Ukraine has systematically supported programs and projects aimed at attracting new clients to Ukrainian tech companies over the course of five years. This includes supporting trade missions and export platforms, retraining and employment programs in the tech sector, fostering the development of startups and attracting venture investments, supporting hardware and engineering companies, and organizing events for business representatives, clusters, and associations,” said Valeriy Dobrovolsky, Head of the IT, Engineering, and Creative Industries Development Team of the USAID Competitive Economy Program in Ukraine.

“Despite all the challenges, the significant importance of IT in exports and the Ukrainian economy is undeniable. We are grateful to Mrs. Pritzker and her colleagues for the meeting, support, and interest in the Ukrainian tech industry. Also, for the opportunity to share relevant information about the tech sector and identify vectors for future cooperation. I am confident that through dialogue with international partners, we will find effective solutions for the development of the industry and the stability of Ukraine’s economy,” says Sviatoslav Kavetskyi, the Supervisory Board Chairman of the Lviv IT Cluster.

The Lviv IT Cluster continues its growth trajectory, drawing in new companies and spearheading projects crucial for both the industry and the nation. A top priority for our community in the near future is to bolster international partnerships.