Promoting IT during the war: Lviv IT cluster and how EU4Digital helps

In recent years, especially during the full-scale invasion of Ukraine, the city of Lviv has strengthened its role as one of the main technological hubs of Central and Eastern Europe. In particular, the Lviv IT Cluster has confirmed its status as one of Ukraine’s leading technological associations. In 2024, this cluster was a winner of European cluster benchmarking, receiving the prestigious European Cluster Excellence Initiative (ECEI) Bronze Label, with support from the EU4Digital Facility.

Svitlana Skrypka, Donor Relations Manager of Lviv IT Cluster explains the value of this support and her organisation’s activities.

The award is an important indicator of the efficiency and organisational development of clusters that meet European management standards, have a high level of cooperation between participants, and have strategic potential for further growth. What does Svitlana’s team think about receiving the Bronze Label award?

“The award is an important recognition of the quality of our work and projects. It confirms our compliance with international standards and helps compare our activities with the best practices of European clusters. In addition, the recommendations for development that were proposed in the clusters report that EU4Digital produced largely coincide with our goals for the coming years,” said Svitlana Skrypka.

How the Lviv IT Cluster adapts and cooperates with the state

This recognition should not only strengthen your position within Ukraine, but also significantly contribute to integrating the country’s IT industry into the European technological space. However, in this time of war, Ukraine faces complex budgetary issues, so how did Lviv IT Cluster resolve any difficulties in terms of donors and grants, and is there cooperation with the state in this regard?

“Despite the challenges faced by the Lviv IT Cluster in terms of both funding and the full-scale invasion, the organisation continues to adapt to new conditions, expand cooperation with international partners, and attract resources to support small and medium-sized businesses, and to develop educational programmes and technological innovations. Cooperation with government bodies that promote initiatives in the field of education, digitalisation and the development of the IT industry, plays an important role in this process.

“Our cluster has faced a number of difficulties in terms of donor funds and grants. The main challenges were an abrupt change in policies, and the expectation of quick and significant results in a very short time. This complicates the process of attracting funding, as grant makers often change their priorities, and the requirements for reporting and project implementation deadlines can be too strict. We do not consider grants as the only or main resource for the implementation of our projects, as the stability of our cluster’s activities depends on a combination of different financial flows. However, additional grant funding allows us to scale initiatives faster, reach a wider audience and bring more benefits to both the IT industry and society as a whole.

“Cooperation with government agencies plays an important role in our activities. Although we do not receive government funding, its support is extremely valuable. For example, the Ministry of Digital Transformation helps us within its competence, opening up access for business and the IT industry to large-scale international programmes such as Digital Europe.

“The Ministry of Digital Transformation also supports a number of our projects, including ‘CodeUA’, ‘IT Research’, ‘IT Arena’, as well as educational initiatives. In addition, the Ministry of Education assists us in creating new curricula, both at the vocational and undergraduate levels, which helps to develop the IT industry in Ukraine.”

Lviv IT Cluster activities and initiatives

How do your organisation’s activities help your cluster’s participants? What kinds of specialists do they need and in what areas?

“The cluster does not provide specialists directly but creates services that respond to community requests and contribute to the development of the IT industry. All our projects are implemented based on the needs of the association’s members and cover a wide range of areas.

“One of the key areas is education and the training of specialists. We promote the creation of vocational and bachelor’s programmes that allow training of specialists without the need for any additional training after they’re employed.

“Our cluster also supports participants through a number of initiatives. These include legal assistance and consultations, and support in concluding mergers and acquisitions, which contributes to the development of participating companies. There are also professional communities and peer-to-peer mentoring through ‘Founders Dialogue’, which helps company leaders to exchange experience. Professional ‘IT Meets…’ conferences are held, which contribute to the development of the expert community. And we provide digital tools for HR and support for concluding agreements between participants in our ‘IT Club Loyalty’ programme. We produce analytical ‘IT Research’ studies, which help businesses make informed decisions in times of crisis and uncertainty. In addition, our cluster is engaged in international promotion of the Ukrainian IT industry through ‘CodeUA’, ‘IT Arena’ and ‘Scroll.media’.

“A separate important area is social responsibility and joint actions of participants in supporting the defence of Ukraine, assisting victims and restoring infrastructure. A number of initiatives have been implemented within the framework of the ‘Victory Projects’ initiative. This is targeted support for the defence forces, ensuring critical infrastructure and creating mental health centres for adults, children and adolescents. A residential building in Lviv, at 46 Konovalets Street, which was damaged by a missile strike in September 2024, is also being restored.

“Among the positive achievements, it is worth noting the launch of European Digital Innovation Hub (EDIH) clusters with the support of the European Commission. EDIHs are support centres that help companies and public organisations respond to digital challenges and increase their competitiveness. They provide access to technical expertise, as well as services such as financial advice, training, and skills development, which are key to successful digital transformation. Their launch is important confirmation of the significance of cluster activities at the international level. Recognition from such institutions opens up new opportunities for us and strengthens our position in the field of international cooperation.”

Digitalisation needs and EU4Digital help

To operate effectively in today’s world, organisations and businesses need access to advanced tools. Is your cluster’s need for digital tools met and do you have access to the necessary tools, such as paid versions of AI, software? Are there programmes in which the cluster participates to cover funding or gain access to tools?

“Our cluster actively uses various specialised software and digital tools in its work. For some products, we were able to obtain special individual conditions directly from development companies, in particular from Adobe. Other tools are available to us thanks to our participation in the ‘TechSoup’ project, which provides special conditions for non-profit organisations.

“Despite this, we still need specific software that is critical for the work of the analytical department and the dissemination of research results in a convenient format. QuestionPro is among such solutions. It provides discounts for non-profit organisations, but even so the cost remains high (over $4,000 per year and the price increases every year). IBM SPSS costs $2,000 per year. Power BI Premium costs over $4,000 per year…

“We are constantly working on cost optimisation and looking for opportunities to gain access to the necessary tools through partner programmes or special conditions for non-profit organisations.”

You mentioned the EU4Digital report on mapping the Eastern Partnership clusters, analysis and recommendations for support, which was released in January of this year. Do you think this report has been relevant and useful for your cluster?

“The EU4Digital Eastern partner cluster mapping, analysis and recommendations report has been truly relevant and useful for our cluster. In particular, we took into account the report’s recommendations on pooling resources to increase social impact, and consolidating efforts to form a common voice for improving the regulatory framework. The recommendations helped to direct our activities in the right direction, including in the areas of communications and digitalisation.”

International perspectives and future outlook

What conclusions did your cluster draw from its discussions with European experts? And what do you expect for the future of Lviv IT Cluster?

“Participation in international programmes takes our cluster’s activities to a new level. At the same time, research conducted by the cluster helps businesses make strategic decisions in difficult economic conditions. And studying and taking into account recommendations from EU4Digital reports helps the cluster to strengthen ties with European clusters and implement best management practices.

“Discussions with ECEI experts allowed us better to understand the differences in the construction and operation of clusters in Ukraine and the EU. In particular, European clusters are sometimes created and managed ‘from above’ by the state, which determines their policies and development directions. At the same time, Ukrainian clusters are built up by businesses and are focused on protecting the interests of industries and interacting with state authorities in a different format.

“One of the key differences is our approach to funding. By nature, we are a service provider to our members, with industry and community development at the forefront. Grant funding for us is only a tool for diversifying resources or scaling up projects, but we do not consider receiving funds from the state budget of Ukraine as a possible option for financing our cluster’s activities.

“Social responsibility remains an important area of activity for the Lviv IT Cluster. The organisation continues to support initiatives aimed at assisting Ukrainian defenders, restoring infrastructure, and supporting communities affected by the war. The projects implemented within ‘Victory Projects’ demonstrate how the combined efforts of the IT community can have a real impact on strengthening the country.

“It is expected that the further development of the Lviv IT Cluster will contribute not only to the growth of the IT industry, but also to the digital transformation of the entire country. Thanks to digitalisation, a strong, sustainable and competitive technological ecosystem of Ukraine is being formed.”

The Lviv IT Cluster and other clusters selected to receive EU4Digital support in the European Cluster Management Excellence benchmarking and quality labelling process were announced during the EU4Digital ICT Innovation Forum on 9 October 2024, in Moldova.

Author: Lev Shevchenko