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Prospects of the ICT sector in Greece

Prospects of the ICT sector in Greece

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Study <strong>of</strong> <strong>the</strong> <strong>ICT</strong> <strong>sector</strong> <strong>in</strong> <strong>Greece</strong>: Current Situation and Future Trends<br />

Deliverable 14: <strong>Prospects</strong> <strong>of</strong> <strong>the</strong> <strong>ICT</strong> <strong>sector</strong> <strong>in</strong> <strong>Greece</strong>-policy implications<br />

<strong>the</strong> pr<strong>of</strong>its from <strong>the</strong> acquisition <strong>of</strong> <strong>ICT</strong> equipment. The field <strong>of</strong> enterta<strong>in</strong>ment / recreation is<br />

considered a preferential field <strong>of</strong> growth, with potentially more <strong>in</strong>tense positive effects <strong>in</strong><br />

larger parts <strong>of</strong> <strong>the</strong> population. However, <strong>sector</strong>-based content that may attract <strong>the</strong> <strong>in</strong>terest <strong>of</strong><br />

large groups <strong>of</strong> firms as potential users should also be a field for fur<strong>the</strong>r exploration.<br />

Extroversion efforts<br />

Extroversion is usually <strong>the</strong> answer to a small sized domestic market, but it is not an easy<br />

strategy for all. Firms that meet <strong>the</strong> necessary characteristics <strong>of</strong> size and capabilities can at<br />

first turn towards <strong>the</strong> neighbor<strong>in</strong>g countries. Thus, <strong>the</strong>y could benefit from <strong>the</strong> total<br />

entrepreneurial activity that is be<strong>in</strong>g developed <strong>the</strong>re dur<strong>in</strong>g <strong>the</strong> last decade by important<br />

Greek firms. Till today, this extrovert behavior has <strong>in</strong>volved only <strong>the</strong> box-mov<strong>in</strong>g. However,<br />

this trend slows down <strong>in</strong> favor <strong>of</strong> some <strong>in</strong>tegrated IT services. The first area can stimulate<br />

pr<strong>of</strong>itability with ‘easier’ sales, but cannot be applied for a long period <strong>of</strong> time, s<strong>in</strong>ce <strong>the</strong><br />

pressure from <strong>the</strong> local and <strong>in</strong>ternational competition <strong>in</strong>creases. Emphasis on services <strong>of</strong> high<br />

value added could be more endur<strong>in</strong>g and <strong>the</strong>refore yield more benefits for <strong>ICT</strong> firms <strong>in</strong> <strong>the</strong><br />

long-term.<br />

Firms that are start<strong>in</strong>g to show some extroversion are grow<strong>in</strong>g <strong>in</strong> number, <strong>in</strong>dicat<strong>in</strong>g some<br />

signs <strong>of</strong> a know-how that can be exported, at least by <strong>the</strong> <strong>in</strong>novators. Besides, <strong>the</strong><br />

implementation <strong>of</strong> important large scaled IT projects <strong>in</strong> <strong>Greece</strong> has <strong>of</strong>fered some additional<br />

experience and has upgraded <strong>the</strong> local capabilities. In any case, such extrovert <strong>in</strong>itiatives<br />

should <strong>in</strong>tensify, as time is not an ally. Opportunities may still exist, but <strong>the</strong> correspond<strong>in</strong>g<br />

local <strong>sector</strong>s <strong>in</strong> <strong>the</strong> neighbor<strong>in</strong>g countries develop rapidly and could soon substitute <strong>the</strong> role<br />

<strong>of</strong> Greek <strong>ICT</strong> firms <strong>in</strong> <strong>the</strong>se markets. Thus, <strong>the</strong>y may even represent a threat for <strong>the</strong> Greek<br />

<strong>ICT</strong> <strong>sector</strong> <strong>in</strong> <strong>the</strong> long-term. At <strong>the</strong> same time, <strong>the</strong>ir enforcement may render that<br />

environment more favorable for <strong>in</strong>vestors, this lead<strong>in</strong>g to a possible withdrawal <strong>of</strong> foreign<br />

<strong>in</strong>vestors’ from <strong>Greece</strong>. Consequently, a rapid undertak<strong>in</strong>g <strong>of</strong> <strong>in</strong>itiatives towards that direction<br />

is required, at least from those firms that seem to have this capability.<br />

At <strong>the</strong> level <strong>of</strong> Public policies for <strong>the</strong> Information Society<br />

Public policies for <strong>the</strong> Information Society <strong>in</strong>fluence <strong>the</strong> demand directly or <strong>in</strong>directly, but at<br />

<strong>the</strong> same time <strong>the</strong>y shape <strong>the</strong> environment <strong>in</strong> which firms <strong>of</strong> <strong>the</strong> <strong>sector</strong> operate. We have<br />

already mentioned <strong>the</strong> actions and <strong>the</strong> objectives <strong>of</strong> <strong>the</strong> policies that are implemented or<br />

planned for <strong>the</strong> future. These policies are well targeted, while <strong>the</strong>ir success can <strong>in</strong> fact speed<br />

up <strong>the</strong> diffusion <strong>of</strong> Information Society <strong>in</strong> <strong>Greece</strong>. In <strong>the</strong> follow<strong>in</strong>g section, we shall attempt<br />

October 2006<br />

Observatory for <strong>the</strong> Greek IS 43

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