Georgia’s Innovation and Technology Agency (GITA) celebrated a significant milestone, marking its tenth anniversary earlier this year. During the event, GITA’s evolution was highlighted and new initiatives and plans were introduced. A comprehensive 12-month start-up incubation program in three stages will be launched:
1. Founder Market Fit: Forty start-ups will undergo active coaching and mentoring for two months.
2. MVP Stage: Up to 20 start-ups will receive four months of mentorship to create minimal cost products, conduct market testing, and secure initial clients. They will also be granted 50,000 GEL to cover MVP creation costs.
3. Market Entry: Six months of mentoring will be provided to help start-ups achieve market traction, along with a grant of 150,000 GEL.
This incubation program, overseen by four partners selected by GITA, will annually include a total of 160 start-ups. Under the co-financing grants program of the Georgian Innovation and Technology Agency, over 200 innovative start-ups with global potential have been financed, receiving a total of 38 million GEL in grant funding. This initiative has generated private financial benefits amounting to half a billion GEL and created around 3,000 new jobs.
The future of Georgian innovation
To enhance Georgia’s global competitiveness and leverage its scientific potential, the country has identified three key technological focus areas:
1. Artificial Intelligence: a dedicated scientific group will be established to implement artificial intelligence across various sectors, including education, healthcare, and agriculture.
2. Bacteriophage research: with nearly a century of experience in this field, Georgia aims to capitalize on the growing global demand for bacteriophages, driven by the challenge of antibiotic resistance.
3. Agrotechnologies: recognizing that a significant portion of its population is employed in agriculture, Georgia plans to develop new scientific and technological products to boost productivity.
Background information
GITA has facilitated the entry of 500 Global, a well-known global venture capital firm, into the country. This initiative, coupled with the establishment of Georgia’s first venture capital fund with assets of 20 million dollars, underscores Georgia’s growing stature as a regional innovation hub. Furthermore, nine technoparks have been established across Georgia to assist citizens in commercializing their innovative ideas. Through a regional programme granting successful applicants up to 25,000 GEL, 80 innovative projects have been financed. Thanks to tax incentives for IT companies introduced by the government of Georgia, 120 international IT companies have entered the country, contributing a billion GEL in salaries and creating over 10,000 jobs in 2023.
In an effort to foster innovation, Georgia has introduced new regulations defining the status of innovative start-ups. Companies granted this status will enjoy a three-year exemption from income and profit taxes. Furthermore, companies engaged in R&D activities will be accorded the same status as international companies, resulting in a reduction of profit and income taxes to 5%.
