Ukraine as an emerging R&D center

Qubit Labs
Qubit Labs Team

Having a scientific background, IT-industry pays more and more attention not to the production, but to the development stage. In the high-tech business, some key decisions are based on research results. The importance of R&D has increased even for marketing companies, which are aimed at tracking the latest developments of competitors and customer needs in order to realign them with their research.

Leading companies are proud of their numerous R&D centers around the world, gathering the wide range of engineering talents. That’s, probably, one of the reasons why Ukraine has emerged as the R&D center of some prominent international IT companies like Samsung, Ericsson, Oracle, and Siemens.

So what is R&D nowadays?

R&D is a set of activities aimed at obtaining new knowledge and practical application in the creation of a new product or technology. So, the definition of it hasn’t changed, but nowadays the implementation can vary due to new possibilities and, of course, technologies.
Usually, R&D includes two stages:

  • The work of the search, theoretical and experimental, performed to determine the technical possibility of creating new technology within a specified time. R&D is divided into basic (acquisition of new knowledge) and applied (application of new knowledge to solve specific problems) study.
  • A complex of works on design development and technological documentation for prototype production and testing of it carried out under the technical project.

Why Ukraine?

They say Ukrainians are the emerging Technology Nation, taking a #1 amounting to IT professionals in CEE area, being home to more than 1000 IT companies and over 100 international R&D subsidiaries. Having a wide range of specialists, Ukraine obtains lots of industries for outsourcing R&D, including telecoms, software, gaming, and e-commerce.

“The Ukrainian IT sector is still at a relatively early stage but has already established itself as a hotbed of innovation, driven by the largest group of software engineers in all of Europe. It is no coincidence that hundreds of global tech companies have been outsourcing software development tasks to Ukraine, have opened R&D centers there, or are investing in startups founded by Ukrainians.” – said Yevgen Sysoev, co-founder and managing partner at AVentures Capital, one the creator of “IT Ukraine from A to Z.

About 45% of such of representative offices are offices of companies in the US, followed by Europe and Israel. The most popular location for the R&D placement remains Kyiv, but new IT-centers are appearing, such as Dnipropetrovsk, Lviv, Odessa, Kharkiv, and Vinnitsa. Part of the research centers are operating in the country directly; other companies prefer outstaffing or M&A.

If emphasizing the uniqueness of the Ukrainian IT-industry, we should recall its history with the impressive scientific background and also affordable conditions along with comparably low taxes for leading business. So, easy access to the highly skilled IT professional, saving company budget, entering and successfully remaining in the Ukrainian market can bring even a greater amount of production and future IT products release. What over 100 global companies confirm here with their efficient R&D centers and remarkable working results.

You can join the list of the companies with efficient R&D centers in Ukraine just by contacting us. Qubit Labs will accompany you in establishing it fast and hassle-free.


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