Why Warsaw is the Tech Capital of Poland?

Warsaw is more than the capital of Poland, rising like a phoenix from the ashes after World War II,  it is a symbol of resistance and progress. There’s an interesting mix of old and new in this city. The old town on one side and the skyscrapers on the other side, form a harmonious area. 

Moreover, Warsaw emerged as a major technology center in Central Europe for good reason.

What makes it so? Let's find out together!

Warsaw: A Statistical Overview

Warsaw has a population of 1.8 million residents, making it the seventh most populous city in the European Union, with an impressive regional employment rate of 85.4%. This makes it a prime location for industries such as information technology (IT), finance, game development, and business support services (BSS).

The Polish capital is generally friendly to foreigners. There are about 60,000 foreigners living in Warsaw - one in four immigrants is from Ukraine, one in eight from Vietnam, and one in sixteen from Belarus. 

The surface area of Warsaw is 517 square kilometers, which is five times larger than Paris. Warsaw has a central location between major European capitals such as London, Stockholm, and Budapest. This strategic location allows easier access to different regions of Europe and facilitates cultural exchanges and diplomatic relations between neighboring countries.

Now that we have an overview of this city, we will go through the reasons why Warsaw is called the technology capital of Poland.

Warsaw's Educational System

The education system in Warsaw is very good, with top universities such as the Warsaw University of Technology and the University of Warsaw. Highly skilled tech professionals are educated here, so the city's tech industry has a constant supply of new talent. Poland, in the lead with Warsaw with its tech talent, ranks nr 4 in terms of STEM graduates and 1st in terms of female STEM graduates in the European Union.

In addition to traditional education, there is an increasing focus on research and innovation in areas such as AI, fintech, and cybersecurity, which is contributing to the emergence of numerous technology incubators such as mSpark, ReaktorX, or university-affiliated incubators like the University of Warsaw Incubator and Warsaw University of Technology Venture Hub which aim is to encourage entrepreneurship and promote technological advances.

In total, there are more than 30,000 skilled technology workers in the Polish capital, including software engineers, data scientists, product managers, and more - all these due to its strong educational base and focus on cutting-edge research.

Warsaw's Tech Ecosystem

The technology ecosystem in Warsaw stands out globally for its expertise in data science, machine learning, quantum information theory, AI, e-commerce, gaming, and deep tech.

Tech giants such as Google, Microsoft, and IBM have established research and development centers in the city, helping to boost innovation and attract further investment. At the same time, there are more than 280 startups in Warsaw, representing about 35% of all startups in Poland, with Warsaw being the best-ranked startup ecosystem in the country.

Fintech startups like PayU and IAI Fintech, e-commerce startups like Allegro and DocPlanner, and game studios like CD Projekt Red (creators of The Witcher series) and Techland (Dying Light) are thriving in Poland.

In Warsaw, several active investors are involved, including venture capital firms, angel investors, and corporate venture capitalists. Some of the top investors are Inovo Venture Partners, Piton Capital, and bValue.

The Polish government actively supports the technology sector through grants, tax breaks, and other programs and initiatives. Here are some examples: Google's Cloud Data Hub, the first in Europe to offer top cloud computing resources, as well as the National Center for Research and Development, which funds research and technological development projects.

At the same time, Warsaw hosts various tech events throughout the year, such as Wolves Summit and Startup Grind Warsaw. 

Source: https://www.wroclaw.pl/tv/wolves-summit-2023-wielka-szansa-na-wielki-biznes 

The city also offers a well-developed transportation network and a high-speed internet connection, which makes it easy for tech companies to connect with talent and customers around the world. In addition, Warsaw Chopin Airport offers connections to major European and international hubs, facilitating global collaboration and travel.

Living in Warsaw: Costs and Quality of Life

The cost of living is another reason why Warsaw is so attractive to startups, established companies, and skilled tech professionals. The city offers a significantly lower cost of living and doing business compared to other European tech capitals such as London or Berlin.  

Source: livingcost.org

In Warsaw, the cost of living is around 1442 USD  for one person, which is quite average compared to other places in the world.

People working in Warsaw typically earn an average after-tax salary of $1,764, which is enough to cover living expenses for about one month.  It is ranked 40th out of 270 global cities in Resonance's latest "World's Best Cities" ranking and ranks first among cities in Poland.

Warsaw also offers a high quality of life with a lively and cosmopolitan atmosphere. Art, history, delicious food, there is something for everyone. Warsaw's tech community attracts professionals from all over the world, making the city a diverse and welcoming environment.

Warsaw Among European Cities of the Future

Warsaw's tech scene is expected to grow even more because the city is investing continuously in better infrastructure and programs to attract big tech companies, Warsaw's education system is good and collaborative and manages to meet the high demand for skilled tech workers. There is a good quality of life and a good cost of living. 

Hanna Gronkiewicz-Waltz, Polish politician and lawyer said:

“Warsaw is an excellent place to invest and live in. We are leaders in Central Eastern Europe, due to our attractive location, availability of capital and constantly developing infrastructure, thanks to which the quality of life is improving year by year".

Wrapping Things Up

Warsaw is undoubtedly on its way to becoming a leading technology hub in Europe and possibly worldwide - with its talented workforce, dynamic, innovative spirit, and growing international investment. This growth will bring economic prosperity to the city and also contribute to global technological development.