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Preparations for the launch of Science.City are already underway. The Ministry of Education and Science has provided new details about the project and explained how businesses can join it

The Ministry of Education and Science of Ukraine (MES) together with the Ministry of Digital Affairs are developing a new legal regime Science.City, which aims to transform science parks into modern innovation centers. While the draft law is at the approval stage, work is underway with the scientific and business communities. MES explained how businesses can become residents of the new legal regime and which pilot projects are already operating.

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Preparations for the launch of Science.City are already underway. The Ministry of Education and Science has provided new details about the project and explained how businesses can join it

The Ministry of Education and Science of Ukraine (MES) together with the Ministry of Digital Affairs are developing a new legal regime Science.City, which aims to transform science parks into modern innovation centers. While the draft law is at the approval stage, work is underway with the scientific and business communities. MES explained how businesses can become residents of the new legal regime and which pilot projects are already operating.

In January, the Ministry of Digital Affairs officially presented the Science.City project, which is part of the Strategy for Digital Development of Innovations WINWIN 2030, which unites science, education and business. According to Mykhailo Fedorov, currently there are 36 science parks in Ukraine, of which only 5 are conducting innovative activities. Over the three years of the project, the number of active parks is planned to be increased.

There are already 3 pilot parks operating in Ukraine, namely:

  • Zhytomyr Polytechnic Science Park: testing energy solutions, launching joint projects with the university, using laboratories, and access to student teams.
  • The Science Park of the Kyiv Aviation Institute (KAI) is a new development center in the areas of deep tech, AI, cybersecurity, machine learning, materials science, and engineering.
  • SID City is a science park of Lviv Polytechnic: Tech StartUp School, R&D laboratories, partnerships with SoftServe and other companies, development of robotics, AI, biotechnology, launch of EIT Food, INPACE, H2HEAT projects.

What does Science City mode involve?

Science City is a comprehensive reform of the science park institute, which will create convenient and mutually beneficial conditions for cooperation between scientific institutions, universities, business and the state. The initiative is aimed at overcoming barriers that hinder innovation, such as: tax burden, complex procurement procedures and bureaucratic operational processes, explains the Ministry of Education.

The project involves:

  • introduction of tax benefits;
  • creating conditions for the implementation of customs preferences when importing production and research equipment;
  • providing benefits in the lease of state and municipal property;
  • the opportunity for science parks to integrate into the legal regime of Action.City on flexible terms;
  • conducting all purchases without auctions;
  • complete digitalization of operational processes of interaction with the Ministry of Education and Science.

How does it work?

  1. The business finds a higher education institution or scientific institution with which it has common goals and is ready to cooperate.
  2. Creates a science park or becomes a partner in an existing one.
  3. Submits an application to the Ministry of Education and Science to be included in the register of science parks and receive resident status within Scienceє.City.
  4. After approval, the park operates under simplified rules with access to benefits and infrastructure.
  5. Launching a project that will be aimed at meeting the state's priority needs.
  6. Then you need to fill out a request form indicating the type of support the project requires (for example, tax breaks, customs clearance of research or production equipment, lease of state or municipal property, etc.).
  7. A short electronic activity report must be submitted annually.

"The science park can also receive the status of a resident of Diya.City on preferential terms, for this it must meet the minimum requirements (9 employees or gig specialists, minimum salary of 600 EURO, the state's share in the charter is unlimited)," the ministry added.

Who can become a Science.City resident and what benefits will the business receive?

All individuals or legal entities (residents and non-residents) who want to cooperate with higher education institutions or national universities and create science-intensive projects can become Science.City residents.

Benefits for business:

  • Tax benefits: 0% VAT for projects with state support status.
  • Customs benefits: 0 UAH when importing research and production equipment.
  • Preferential conditions for joining Diya.City: 5% personal income tax, 5% military duty, social security contributions from the minimum base, average salary from 600 to 800 Euros for the first 5 years of activity, no restrictions on the state's share in the charter.
  • Access to university infrastructure: laboratories, research equipment, centers for collective use of scientific equipment, campuses, rental of premises.
  • Possibility of cooperation without tenders and bureaucracy.
  • Simple administration: all interaction through the online office, only one electronic report per year.
  • Attracting young talents: students, interns, scientists.

How to join?

Businesses planning to collaborate with universities can now:

  • contact the Ministry of Education and Science for advice [email protected] and share about areas of activity and desired formats of cooperation;
  • receive information about open opportunities for cooperation and support;
  • get acquainted with HEIs/NUs that conduct related activities in order to create a joint science park or join an existing one;
  • submit an online application for resident status after the bill is passed.
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