Argencon, the entity that brings together the main companies of the Knowledge Economy, conducted a survey among sector companies to report on the expectations and main challenges facing the industry in the context of a new economic policy.
The study – which gathered the opinion of 28 leading companies in the Knowledge Economy – indicates that 7 out of 10 companies expect an increase in employment demand, and more than half anticipate that this growth will exceed 10%. Optimism is particularly high among professional services companies, with 33% estimating growth of over 20%. Only 10% of Information Technology companies expect similar growth.
Regarding exports, 80% of the companies believe that they will increase following the implementation of the new economic policy. Additionally, half of these companies expect export growth to exceed 10%, and none of the surveyed companies believe that exports will be lower than in recent years.
Challenges to overcome and global competition
The survey also identifies the main points to address in order to achieve a more competitive industry. 32% of the surveyed companies mention the lack of unification and/or normalization of the exchange rate as the main challenge to address, with macroeconomic factors being the major determinant of the ecosystem. Other limiting factors include regulatory complexity -22% of responses- and the inability to pay salaries in dollars -13% of responses-. Following these are particular conditions of the Knowledge Economy: digital talent formation (18%) and lack of English language proficiency (12%).
“The results confirm that, as a result of the elimination of the exchange rate control, stabilization of the exchange rate, simplification of regulations, and labor market reforms announced, the Knowledge Economy will experience a significant improvement in its international competitive capacity, resulting in increased employment and exports higher than those registered in recent years,”
explained Sebastián Mocorrea, president of Argencon.
In addition, the knowledge sector -which has been the fastest-growing nationally over the past 5 years- competes globally to ensure a steady flow of income and currency, so the actions of other countries affect Argentina’s exports. According to the respondents, two factors will drive the growth of international trade in the Knowledge Economy: maintaining competitive costs (45%), followed by sustaining constant technological renewal (21%).
Likewise, 45% of the companies believe that the demand for global Knowledge-Based Services for Latin America will be similar to global growth, while another 45% estimate it will be higher. 40% identify Colombia as the main competitor to Argentina’s offer in our region, followed by Mexico with 28%. Luis Galeazzi, executive director of Argencon, elaborates on this point.
“It is crucial that Argentina follows the example of those countries that are strengthening their Knowledge Industries through diligent public policies. Improving competitiveness and seizing the opportunities offered by the international market is essential to position our country among the most prominent globally,” he concluded.
About the study
The study was conducted by Argencon during the first quarter of 2024. The sample consists of 28 leading companies in the Knowledge Economy. Among them, 40% are from the Information Technology sector, 36% from Professional Services, 7% from Commercialization, 5% from Audiovisual Services, 5% from Bioscience or Bioeconomy, and 7% from Other sectors.
75% of the sample consists of companies with more than 500 employees, and 51% of the sample consists of companies that export more than 50% of their production.
