War-induced relocation of high-tech companies: Spatial perspectives from Ukraine and Poland

Objective: The article aims to assess the scale and direction of the relocation of Ukrainian high-tech companies following the Russian invasion in February 2022, with a particular emphasis on comparing the relocation processes within Ukraine and those from Ukraine to Poland. The article seeks to identify the strategies, challenges, and outcomes associated with these relocations, offering insights into the broader implications of such movements for both the Ukrainian and Polish economies.

Research Design & Methods: This study employs a mixed-methods design, incorporating both quantitative and qualitative approaches. It analyses available data from official Ukrainian and Polish statistics and includes interviews with representatives from regional military administration offices in Ukraine, municipal offices in Poland, support institutions, and relocated IT companies. Descriptive statistics and thematic analysis are used to assess the relocation processes, challenges, and outcomes.

Findings: The study shows that the Russian invasion of Ukraine led to significant relocation of high-tech companies, representing IT sector. Western Ukrainian regions like Lviv and Zakarpattia became key hubs with 78% of relocated companies resuming operations. In Poland, Ukrainian high-tech firms constitute 7.1% of all high-tech companies, with Warsaw, Krakow, and Wroclaw as top destinations, however the concentration measures are the highest in regions neighbouring Ukraine. The relocation faced distinct challenges in both countries, including infrastructure in Ukraine and legal issues in Poland, underscoring the adaptability of Ukrainian businesses and various relocation strategies.

Implications & Recommendations: The study highlights the resilience of high-tech companies relocating within Ukraine and to Poland. The presence of Ukrainian firms in Poland suggests opportunities for deeper economic integration, encouraging targeted policies to support innovation and collaboration.

Contribution & Value Added: This article offers a novel analysis of the relocation of high-tech companies from Ukraine during the war, focusing on comparative experiences in Ukraine and Poland. It fills a gap in the literature by providing insights into the strategies and challenges faced by these companies in wartime and the support of state and regional institutions and administration.