In 2019, the Lviv tech industry’s overall economic effect exceeded $1 billion, with tech companies’ growth rate reaching a staggering 45%. The new study of the Lviv IT Cluster IT Research 5.0 shows the most current figures of the city’s tech industry in 2020.
For five years in a row, Lviv IT Cluster has been conducting an independent analytical study of the Lviv tech industry with the most up-to-date information on the industry development dynamics, its economic effect, and a portrait of a tech specialist in Lviv. The study was conducted based on a survey of tech specialists and companies regarding the pandemic’s impact on their activities and expenses, expert interviews with top managers of Lviv tech companies, and statistical data (SFS, UkrStat).
- Number of companies and tech specialists
The number of tech companies in Lviv increased by 17%. There are 492 tech companies now, whereas, in 2019, the number equaled 461. Despite the unfavorable situation due to the pandemic-induced crisis, the number of tech specialists has been growing – 26-26.5k, compared to 24-25k last year.
- Economic performance and taxes
Tech industry share in the GRP of Lviv has not changed compared to 2019 and equals 20%. The industry’s turnover exceeded the last year’s number, ranging from $816 to $832 million (in comparison, in 2019 the industry’s turnover ranged from $658 to $718 million).
The total economic effect of the tech sector in Lviv in 2019 amounted to $1.255 billion (in contrast, in 2018 it was $1.051 billion), out of which the direct economic effect reached $788 million, indirect (the effect of tech on related sectors of the economy) – $507 million.
The total Lviv industry tax revenue in 2019 amounted to UAH 1,567,416 million, exceeding 2018’s number – UAH 1,329,191 million. 53.6% went to the local and 46.4% to the state budget. The total industry tax revenue increased by 16.6%, with the dominant share going to the local budget (due to the growth of single tax).
Portrait of a tech specialist
The median age of tech specialists in Lviv in 2020 is 29; last year, the number equaled 28. The share of Junior specialists is 24%, Middle – 38%, and Senior – 38% correspondingly. Most tech specialists are men (68%), whereas the share of women in tech in 2020 was 32%. 57% of respondents were involved in charity initiatives.
Learn more about the tech industry’s job market and its changes, the top managers’ assessment of 2020, detailed information on tech companies’ performance during the pandemic, including the impact of the pandemic on financial performance, as well as layoffs in tech companies in IT Research 5.0.