An article by Christian Serron, director of Bros, published on the Medium platform, analyzes the development of Uruguay in the software industry under the title: "Uruguay: the Silicon Valley of South America", in which he makes comparisons between what led California to lead the world technological innovation with the process experienced by Uruguay.
"I know some of you are thinking, 'Where is Uruguay? Tucked between Brazil and Argentina, with a population of 3.5 million in a territory smaller than the state of Missouri, Uruguay is best known for its beautiful beaches, its cattle and its passion for soccer. However, with $1.2 billion generated in information technology in 2016 and steadily expanding, and with 700 technology companies exporting software to 52 different markets, Uruguay is also the leading software exporter per capita in South America and the third largest in the world," the note begins.
"It seems true that Uruguay has a great development culture but calling it the Silicon Valley of South America might be a bit presumptuous, don't you think? Spoiler alert: it's not," he says.
He goes on to note that Harvard identified Uruguay as "one of the most advanced software development centers in the region" and recalls a quote from Tina Seelig, director of the Stanford Technology Ventures Program at Stanford University, who said, "My first trip to Uruguay was an eye-opener. I had no idea that this small country had so much to offer. From the entrepreneurial spirit to the magnificent coastline, it's clear that Uruguay is poised to take the world stage".
According to Bros' article, just as Silicon Valley's success is not a product of chance, Uruguay's IT success is "the result of a sophisticated government master plan, combined with a series of opportune circumstances". And he lists the reasons.
Government subsidies: compare how San Francisco received massive support from the U.S. government since the late 1970s to encourage innovation in technology. Similarly, "notable tax benefits and government incentives were applied by Uruguay in the last decade," such as the 150/2007 decree that exempts taxes on software exports.
Talent: highlights how in 2008 Uruguay became one of the first countries in the world to implement the One Laptop per Child program, which allowed 300,000 public school children to have their own computers.
Space: compare what Silicon Valley has done in coworking spaces with what happens in Uruguay, where common workspaces are created that reduce costs and mitigate the isolation of many entrepreneurs who would otherwise work at home. The "free zones" are also noted for the facilities and economic incentives they provide.
Infrastructure and natural conditions: Uruguay is a regional logistics hub (thanks to its natural port), but it is also a leader in communications according to the Communication Development Index ranking, which measures internet penetration, cell phone usage and other related indices. Added to this is the "excellent communications infrastructure", combined with cultural affinity with Europe and the United States and a similar time zone.
Entrepreneurial atmosphere: Uruguayans are innovators, according to the note in Medium, which recalls that the first pacemaker was born here or the first mammography was performed. "Uruguay achieved technological feats that seem statistically impossible for a country of this size," writes Christian Serron. The country has "a thriving startup industry, notable especially in gaming, similar to what was once the Homebrew Computer Club in Menlo Park, California".
"It would be naïve to attribute the success of Silicon Valley solely to the combination of these five factors, or to believe that this mix of cultures, talent and innovation could not happen anywhere else. A close look at the history of events might shed some light on what turned a small area of Northern California into the tech mecca it is today. And, more importantly, give us some clues on how to replicate this scenario in Uruguay, a country that discovered that technology is its DNA," he concludes.
Source: Montevideo Portal
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