1. Emerging ICT Markets in South East Europe Goran Radman Microsoft Corporation Chairman SEE

2. EU Lisabon Agenda Labour productivity by Industry Group on the basis of ICT taxonomy, EU and U.S., 1995-2001 EUUSEUUS Total Economy 2.31.11.72.2 ICT Producing Industries 5.98.17.510.0 ICT Producing Manufacturing8.416.111.923.7 ICT Producing Services4.82.45.91.8 ICT Using Industries 2.01.21.94.7 ICT Using Manufacturing2.4-0.61.80.4 ICT Using Services1.81.61.85.3 Non-ICT Industries 2.10.31.0-0.2 Non-ICT Manufacturing3.62.71.60.3 Non-ICT Services1.2-0.50.5-0.3 Non-ICT Other3.21.22.10.7 1990-19951995-2001 Ref: Van Ark, Groningen Growth and Development Centre and The Conference Board ICT - producing manufacturing and ICT - using services EU 2010: US benchmark EU 2010: US benchmark New Competitors: India and China New Competitors: India and China Agenda 2004-09: Jobs, Competitiveness and Innovation Agenda 2004-09: Jobs, Competitiveness and Innovation

3. SEE Within the EU SEE Region is slightly larger than Ireland and Portugal Markets, but holds significantly more potential IT Spending (US$M) Source: IDC WW Black Book, November 2004

4. SEE Invests More YE 2000-2008 Source: IDC IT Economic Impact Study, 2005. Investment driving factors: Infrastructure, privatization, EU

5. SEE Grows Faster Source: IT Market Growth IDC / EITO Everage IT growth in EU 15 is less than 2% and 3% in EU 25.

6. SEE Creates Jobs General IT employment will increase by 35.000 new jobs to total over 148,073 in 2008. Over 50% of these jobs will be software or software related employment Other Services and ChannelsIT Hardware Other IT ProfessionalsTotal Software Employees Source: IDC IT Economic Impact Study, 2005

7. …But Less Networked COUNTRY SCORE RANK United States2,021 Singapore1,892 ….……….. Slovenia0,3435 Croatia-0,2357 Romania-0,2358 Bulgaria-0,3164 Serbia & Montenegro-0,6380 Macedonia-0,6782 Moldova-0,7894 Bosnia and Herzegovina-0,8797 Albania-1,04106 Key factors: Key factors:  Infrastructure  Readiness  Use of IT Source: INSEAD, Networking Readiness Index

8. Less Developed

9. And Less Competitive GROWTH COMPETITIVENESS Finland 1. USA 2. Sweden 3. ….. Estonia 20. Slovenia 32. Czech Rep. 38. Hungary 39. Slovakia 41. Poland 51. ………. Bulgaria 58. Croatia 62. Romania 67. Serbia & Mont. 80. Macedonia 85. Bosnia & Herz. 95. Albania100. BUSINESS COMPETITIVENESS USA 1. Finland 2. Germany 3. …… Estonia 26. Czech Rep. 27. Slovenia 32. Hungary 34. Slovakia 39. Poland 42. ……… Croatia 63. Romania 67. Bulgaria 78. Macedonia 83. Serbia & Mont. 86. Bosnia & Herz. 94. Albania112. LEADERS NEW EU MEMBERS SEE Source: Global Competitiveness Report 2005-2006, WEF

10. SEE Main Focus Areas  e-Government Public service, efficiency, transparency, cost reduction  e-Business Competitiveness, SME, innovation  e-Inclusion Education, curricula, skills

11. What we can do?

12. SEE E-GOVERNANCE CENTER  e-Government policy and institutional capacity building support through shared expertise, best practices and standards in public services  Support for multilateral exchange of IT skills, competencies and solutions for public administration for public administration  Replicate Tallin (Estonia) EGC to Bled (Slovenia) EGC to Bled (Slovenia) e-Government

13. BUSINESS-TECHNOLOGY CENTERS  IT entrepreneurship and innovative SMEs support through local incubators  Incubator as source of new IT ideas, business solutions knowledge base and best practice share-point  BTC Varaždin (Croatia) as model to be replicated model to be replicated throughout the region throughout the region e-Business

14. Multi-stakeholder Partnerships for SEE PrivateSector InternationalCommunity Academia Government

15.  The Global Information Technology Report 2005 – 2006 (World Economic Forum) (World Economic Forum)  European Information Technology Observatory 2006  The Economic Impact of IT (IDC) Further Reading