Page 20 - bne IntelliNews monthly magazine May 2024

20 I Companies & Markets bne May 2024
bne:Tech
AI and cybersecurity to drive CEE tech sector Clare Nuttall in Glasgow
PwC and CEE Digital Coalition believe countries in the Central and Eastern Europe (CEE) region have the potential to strengthen and develop their ICT sectors, and create the EU’s Silicon Valley, a new report says.
The analysts highlight a contrast between CEE countries
and those in Western Europe across various digital domains. Proportionately, there is a higher presence of digital sector businesses and a larger workforce engaged in the sector within the CEE region. Moreover, nations in Central and Eastern Europe are increasingly investing in research and technological advancement, according to the report, “The ICT sector in the CEE countries as a regional driver of growth”.
Looking ahead, the report’s authors single out artificial intelligence (AI) and cybersecurity as two sub-sectors they expect will be the driving force of the region in the coming years.
“The digital economy and the Information and Communications Technology (ICT) sector in Central and Eastern Europe (CEE) has witnessed significant growth and transformation in recent years. This region ... has emerged as a hub for technological advancements, innovation, and digitalisation,” the report says.
“The importance of the digital economy and ICT sector cannot be overstated. It plays a crucial role in driving economic growth, creating job opportunities, and enhancing the overall competi- tiveness of the region. With the increasing global demand for digital services and technologies, CEE has positioned itself as a significant player in the digital market,” it adds.
The report covers the EU members of Central and Southeast Europe that together have a population of almost 100mn people and account for 12.3% of EU GDP.
Not only has the region achieved faster growth than Western Europe as countries catch up with their Western peers, the report also points to the rapid pace of development of the region’s ICT sector.
“This is visible in the permanent increase in the share of value added in GDP, new jobs, and the dynamics of international trade – exports of commercial ICT services in the CEE region have increased more than six-fold between 2005 and 2021,” it says.
In fact, the authors add, “There are some areas in which the CEE region is already ahead of more developed economies in the EU – such as the share of employment in the ICT sector or a number of enterprises in ICT sector per 1000 inhabitants.”
Central and Southeast European countries have higher numbers of digital sector businesses and a larger workforce in the sector compared to Western Europe.
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