INVESTMENT COMPONENT OF THE DEVELOPMENT OF IT/ICT SECTOR IN THE COUNTRIES OF CENTRAL AND EASTERN EUROPE (EXAMPLE OF CZECH REPUBLIC AND POLAND)
Abstract
In this paper examines the role of investments in the development of the ICT sector in the countries of Central and Eastern Europe on the example of Poland and the Czech Republic. It is summarized that that foreign direct investment played an important role in building the modern ICT sector in Poland and the Czech Republic. The Czech Republic offers a attractive environment for investments focused on the use of technologies of the Fourth Industrial Revolution. Therefore, global companies Google, Microsoft, Oracle, CA, RedHat, Skype, NetSuite, Tieto, IBM chose the Czech Republic for direct investment. Poland has a great potential of IT specialists. Therefore, ABB, Google, Siemens, Motorola, Delphi Automotive, Intel, McKinsey opened their research centers in Poland. Google, Amazon, Microsoft and Intel have big investment plans in Poland in recent years. Poland is the largest exporter of ICT services and outsourcing in all of Europe. The activity of foreign affiliates increases the value added, income, profit, employment, labour productivity, salary in the ICT sector in these countries. FDI supportes innovation and technology transfer. The Czech Republic and Poland have a significant potential of attracting FDI in the development of the ICT sector and the growth of its efficiency. More investment in information and communication technology assets would be beneficial more broadly across sectors and firms. This requires further improvement of the investment policy, stimulation of foreign investments, improvement of the investment climate, construction of high-quality digital infrastructure, development of human resources, cooperation of domestic and foreign companies to achieve technological, organizational, and institutional effects and exclude the effect of domestic investment outflow, stimulation of venture capital investments.
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