Shuba Maryna, PhD in Economics, Associate Professor, Associate Professor of the Department of International Economic Relations and Logistics, V. N. Karazin Kharkiv National University, Kharkiv, Ukraine

ORCID ID: 0000-0003-2581-6914
e-mail: marinashuba@karazin.ua

Export of ICT services as a factor of economic development in the Baltic States: lessons for Ukraine

Abstract. Introduction. The export of information and communication technology (ICT) services has become a critical driver of national economic growth, particularly for small, open economies. While the Baltic States – Lithuania, Latvia, and Estonia – are often cited as examples of successful digital transformation, Ukraine has emerged as an important exporter of ICT service, demonstrating higher absolute export volumes than any individual Baltic country. However, these countries’ achievements are based on fundamentally different development models, creating an opportunity for comparative analysis and the identification of transferable best practices.

Purpose. This study aims to analyze the experience of the Baltic States in developing ICT service exports as an economic growth factor and to identify opportunities for adapting this model to Ukraine’s national context.

Results. The dynamics of ICT services exports, the structure of the ICT industry, the institutional environment, and innovative activity were analyzed in Lithuania, Latvia, Estonia, and Ukraine. Ukraine’s ICT export performance is primarily driven by large-scale outsourcing. This is supported by an abundant pool of highly skilled professionals, competitive pricing, and advantageous geographical positioning. In contrast, the Baltic States’ model centers on developing innovative product solutions. This model is enabled by institutional excellence, robust start-up ecosystems, access to venture capital, and a strategic focus on high-tech niches. Two distinct but effective growth paths were identified: (1) the Ukrainian large-scale outsourcing model and (2) the Baltic product innovation model. The research revealed substantial potential for mutual learning. Ukraine could benefit from the experience of the Baltic States in creating and scaling product-based companies, and the Baltic States could adopt Ukrainian expertise in expanding IT outsourcing services.

Conclusions. The findings emphasize the importance of accounting for specific institutional, human capital, and market conditions in national digital development strategies. Proposed areas of future research include analyzing the impact of the war on Ukraine’s IT transformation, assessing the feasibility of establishing a Ukrainian-Baltic technological partnership, exploring the replicability of the identified models in other Central and Eastern European countries, and evaluating the long-term resilience of ICT sector strategies amid global technological shifts. These results provide valuable guidance for policymakers, industry stakeholders, and international partners in developing sustainable and competitive ICT policies.

Keywords: ICT services; export; economic development; Baltic states; Ukraine; information technology sector; foreign trade relations.

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