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Economy And Business - Incubators and Technology hubs


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Economy And Business, December 30, 2008

Incubators and technology hubs

Companies, universities and official entities are increasingly gathering to build productive networks aimed at promoting economic development and the interaction among ventures.

If there is an attribute to define the world of technology, it is certainly the fast pace at which new businesses are created. These companies generally begin operating as SMEs and are thought of as highly effective when it comes to providing a quick solution to society ´s specific needs.

Furthermore, they are regarded as high value added undertakings calling for the presence of highly trained human resources, which thus gives rise to quite an enticing corporate, social value and profitability. The SMEs sector accounts for 400 million dollar exports and 70% of this industry operates within the City of Buenos Aires. Nevertheless, exports have also been generated nationwide over the last years.

Due to all of the above mentioned features, Argentina has long been pushing to get numorous governmental entities and corporate associations to implement measures and incentives intended to enable and promote growth within this niche.

One of the cornerstones of the public policies fostering enterprise innovative practices is the promotion and consolidation of a local or regional productive network. This is reflected by several proposals carried out by companies, universities and official entities. As a matter of fact, they use different interaction mechanisms to develop a collective company structure that may set up a network, consortium, group, block, chain or productive structure. Thus, they seek to increase the benefits deriving from every entrepreneurship initiative and the overall welfare of the region.

In Argentina, Interactive environments, such as technology or scientific parks, or other incubators are playing an increasingly major role in encouraging local development, promoting the establishment of high-tech enterprises, or creating bonds between them and the traditional industry.

Also, in Argentina, these business cooperative clusters are gaining ground as innovative practices aimed at enhancing competitiveness, crowding in investments and improving national and international business relationships.

In this regard, several national and provincial laws as well as municipal resolutions currently in place have devised special systems aiming at creating, developing and installing new technology industries in Parks, Incubators, Free Trade Zones, neighbourhoods, etc.

In fact, the magnitude of such a thrust is so far-reaching that it is useful to revise some of the specific benefits that were derived:

  •  Tax stability to last for a 10-year term (as from the date the Act Nº 25.922 was enacted).
  • A 70% maximum reduction in management contributions.
  • A 60% tax exemption applicable to the income tax total amount.
  • Removal of restrictions for the remittance of currencies resulting from goods or services imports. 
  • The Act Nº25.922 created the Software Industry Promotion Trust Fund  (FONSOFT), which is made up of resources annually earmarked from the National Budget, coupled with diverse types of revenues, and funds.
  • This Act also created the Argentine Technology Fund (FONTAR), which is a specific program targeted at securing funding for businesses and institutions aiming at promoting technological modernization and innovation. Moreover, this program provides funding for three types of undertakings. As to these fund programs, they are both run by the Department of Science and Technology. (MinCyT).
     



Education Plans
As this is a highly demanding sector in terms of well-trained resources, the national government jointly with corporate associations has launched a number of specific incentive programs intended to best meet the new demands.

In this regard, the most recently launched incentive program was the creation of the ICT area conceived as a “priority” for the 1500 annual Phd fellowships to be granted by the National Scientific and Technical Research Council (CONICET), regarded as the top scientific research organization.

Bicentennial Fellowship Program
Outorgará bolsas de estudo a alunos que acessem o sistema educativo superior –terciário e universitário- na rama das Carreiras Prioritárias vinculadas às ciências aplicadas, ciências naturais, ciências exatas e às ciências básicas, como engenharia, biologia, ciências físicas ou matemáticas, entre muitas outras.

Research Incentives
It has two operating programs in place known respectively as the Argentine Technology Fund (FONTAR) and the Fund for Scientific and Technology Research (FONCYT). Additionally, it manages another program, the FONSOFT, which is targeted at strengthening software-related activities. It has recently launched two initiatives: one for universities managers and technology linkers, and the other one for t

Argentine software
The country´s software industry employs almost 50.000 people, with more than 1.000 companies exporting their products to more than 100 countries. Argentina has every competitive and comparative capacity to be an outstanding world supplier.

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