Argencon, the first entity in the country that brings together service-providing companies from all verticals of the knowledge economy, presented its “Federal Knowledge Economy Plan” with the aim of promoting the growth of the sector, increase exports, improve the framework of operating conditions and promote Argentina in this type of services. This initiative has 10 thematic areas in which concrete measures are proposed to mobilize the latent capacity of these industries. The initiative contains four axes: governance, competitiveness, resource generation and development programs.
The presentation of the plan, which was carried out yesterday by Argencon, included the participation of Sebastián Mocorrea, president of the entity; Luis Galeazzi, its CEO; and Victoria Penacca, project leader. Also that of Clara Mendiberri, managing director at JP Morgan; Ángel Pérez Puletti, CEO of Baufest; and Verónica Asla, Latam Leader at EY GDS.
The knowledge economy is constantly growing globally in the face of growing international and local demand for digital transformation of all value chains of the productive system. Likewise, the total demand received by these industries is much higher than the current installed capacity, and allows projecting a scenario of continuous expansion for the national ecosystem. In this framework, from Argencon They highlight that the sector is essential for Argentine development for him potential it has to generate foreign exchange, create employment, develop new technologies and due to its federal natureallowing the development of centers of excellence outside urban centers.
Firstly, Argencon analyzes the current global situation of the sector and the role of Argentina. Exports from knowledge industries showed nominal interannual growth of 8.8%, reaching an annual value of US$8,059 million in June 2023. However, the increase did not represent a real increase in the level of activity, but was as a consequence of the accumulated exchange rate delay and its effect on salaries measured in official dollars. So, The level of export activity remained at values similar to 2022. As for the employment formally registered, the year-on-year growth was 5.9%almost three times higher than the national expansion rate.
At a global level, year-on-year growth was 4.8%, that is, 50% more than the average increase in world trade., which demonstrates its expansion as an engine of the economy. Growth was uneven, and one of the regions that benefited the most was Latin America with 16.8%. But Argentina is not gaining share in the global or regional market, they say.
Between the difficulties facing the sector To enhance its local growth, Argencon highlights four main ones. First of all, the Flight of talent as a consequence of the exchange gap and high withholdings on salaries. It is estimated that the leakage of produced value reaches between 20% and 30% of formal exports. Secondly, the competitive disparity between the profitability of the same export in Argentina with respect to reference countries, which motivates companies to migrate their operations. Third, the macro instability which makes it impossible to predict the business environment, operating costs, tax burdens and exchange market rules. And finally, the limitation in talent generation which is a global problem, since demand exceeds supply. The main driving force is the educational system, which requires a profound reconversion to adapt content.
Given this, Argencon proposes four axes to implement during the next three government periods. Firstly, they highlight governance, which includes the regulatory framework and public management necessary for it to be recognized as a strategic social good. Second, competitiveness, which includes the full perception of export value and cost stabilization, in an environment of macroeconomic stability and without exchange fluctuations. Third, resources, which include the availability of talent, connectivity and equipment. Finally, development, linked to digital transformation.