Source: Pexels
Nestled on the Black Sea Coast, sandwiched between Eastern Europe and Asia, and with Russia to the north, is Georgia. This country of just under 4 million people has long been inhabited by humans and is one of the oldest known places where wine was made. Yet as far as modern tech goes, you couldn’t be further away from the sprawling spires of Silicon Valley. So, how is this ex-Soviet republic turning into a hub for innovation?
Georgia’s Quick Rise to Tech Status
In 2020, only 1,971 tech companies existed in the country. It’s estimated that 79% of those were locally owned. Yet in a short space of time, the figure has risen to 24,117, with 84% of these companies now being international.
To do this, the country has tapped into a demand in surrounding countries, where around 300 million people in Central Asia and Eastern Europe are underserved by tech. The country’s government passed laws that made it easier to apply International Company Status to tech companies from overseas. Added to this were reductions in tax rates, property, and dividends.
There’s also the Georgia Innovation and Technology Agency (GITA). Financed by the European Union, they have been working toward a “Do IT with the EU” project aiming at developing regional IT ecosystems. This works alongside a virtual zone, which allows businesses within it to pay no corporate tax and no VAT.
Innovation Coming from Georgia
The innovations and companies involved vary enormously. Firms like BiteriumAI are working in the health sector. They are utilising predictive analysis to build an AI early detection system for healthcare professionals. Integrated with this are patient wearables to help guide healthy lifestyle choices.
Other companies will be more well-known to international audiences. Spribe, the creators of the casino game Aviator, are based in Georgia. This game is now recognisable the world over and involves betting on the path of an aircraft while seeing how long it stays in flight. The longer people play, the more multipliers raise their bet. Yet if they don’t cash out in time, they lose. This is now so global that there is even an Aviator App Kenya, and it has sponsored multiple major sporting events.
Problems Facing Georgia’s Tech Sector
Growth in the sector can be put down solely to investment. Population levels recently went up by 100,000, many of whom came from neighbouring countries. This suggests that after this influx, Georgia’s growth may begin to plateau.
Georgia’s own politics have also been fragmented. Added to this are the reasons the country has always struggled to redevelop and modernise anyway – its tendency for natural disasters. The country has experienced several major earthquakes throughout its history, with the last known in 2022 measuring a magnitude of 5.3.
Thus, Georgia is in a golden period. Whether it is one that can be sustained is unknown, and it seems growth may slow. Yet for tech businesses in the region who want to reach international audiences, it is increasingly becoming the most sound option.