Recent figures show that the 'information and communication technology' (ICT) sector is extremely dynamic in Brussels, and accounts for about one-third of Belgium’s global ICT activities its correct!. Brussels’ position has been bolstered by a series of favourable conditions including strong demand in the local market, close collaboration between businesses and academia and the full, proactive support of the regional authorities.
The Brussels ICT sector is composed of a large number of small high-tech companies, as well as large multinationals such as Nokia, Microsoft, Getronics, IBM, Philips, Unisys and Econocom. Foreign companies represent two-thirds of all ICT businesses in Brussels. The most highly represented countries are France (26.5%), Germany (23.8%) and the Netherlands (6.9%).
The ICT sector is one of Brussels’ major employers. It is comprised of approximately 2,500 enterprises and provides 30,000 jobs. Major employers include both large multinationals such as Nokia, Microsoft, Getronics, IBM, Philips, Unisys and Econocom as well as a large number of small, home-grown high-tech companies. Between 1997 and 2007, the number of ICT-related jobs increased by 30%, which is well above the total job growth for the region.
Currently, the turnover generated by ICT activities in Brussels is EUR 4.5 billion, which represents over 11% of Brussels’ GDP.
ICT in Brussels represents 50% of all technological activity in the capital, and 36% of total ICT turnover in Belgium.
The ICT sector in Brussels is mainly made up of service providers, rather than product companies. Despite the predominance of service companies, however, some sub-sectors are currently experiencing very high growth rates, particularly software and multimedia.
Source: The Brussels Entreprise Agency, ICT Business Unit, 2008
Software in Brussels
The software industry in Brussels is very dynamic. Over 100 companies are active in the software sector and they account for 1,430 jobs and annual turnover of EUR 215 million. Sixty percent of the companies are SMEs with fewer than 10 employees, 25% have existed for more than ten years and about 15% were founded after 2002. Of the more than 100 companies active in the sector, 73 are software publishers that produce and commercialise their own packaged or internet-based software. This includes 37 companies actively promoting the SaaS (Software as a Service) business model.
Software, and particularly software publishing, is considered a strategic industry by the Brussels-Capital Region. A report from the Commission sur l’Economie de l’Immateriel describes software publishing as 'one of the four technologies representative of the growth challenges in the years to come' and indicates that 'software publishing is most important because it is at the centre of product innovation and innovation in production processes, as well as innovations affecting organisations, leisure activities and daily life'.
Multimedia sector
The multimedia sector is another strong growth market for ICT businesses in Brussels, providing 17,400 jobs (35% of employment in the ICT sector) and generating EUR 4.4 billion (2004) or 40% of the turnover in the Belgian ICT sector. There is a growing convergence between the ICT and multimedia communication sectors (support for digital devices and telecom technologies to diffuse information). Examples include the Belgacom TV and Be TV (TV via telephone line).
Household internet penetration in Belgium is slightly above the EU average (40.4%) but far behind the Netherlands (65.5%) and Denmark (64.5%). Broadband penetration is high at 16% versus 10% for the OECD as a whole.
There is a significant presence of content providers, for example:
- Printing and publishing (Illochroma, Rossel, Test-Achat, etc.)
- Movies and videos (Kinepolis, UGC Belgique, Vidéo House, etc.)
- Communication agencies (IP Belgium, J.-C. Decaux, McCann-Erickson, etc.)
- Radio, TV and Belgian press agencies (Agence Belga, Canal+, VRT, RTBF, TVI, etc.) and international (Reuters, Agence France Presse, United Press International, etc.)
Movie production has been boosted by a specific tax shelter for audiovisual productions.
Research & Development
The strength of Brussels’ ICT sector rests on collaboration and synergies between businesses, academia and research & development organisations. The cornerstones of this collaboration are:
- Educational institutions: three main universities (ULB, VUB, UCL) and four institutes of higher education in engineering provide not only relevant high-quality education, they also actively collaborate with ICT businesses on a wide range of R&D projects.
- Technology incubators: the Brussels-Capital Region has created technology incubators dedicated to ICT. These include the Erasmus European Business and Innovation Centre (EEBIC) associated with the ULB; the Arsenal Incubation Centre in Brussels (ICAB) run by the VUB; and the interuniversity incubator 'Brussels Business Case' managed by the Brussels Regional Development Agency (BRDA).
- ICT reference centres: several ICT reference centres develop human capital. 'Evoliris' trains ICT professionals; 'Indutec' develops technical activities in the field and 'Sirris' is a competence centre specialised in software engineering.
Public support for the ICT sector
The Brussels regional government, with its global ICT policy, strongly supports the development of ICT and has designated it as one of its three key innovative sectors. Support includes:
- Financing options: numerous financing options for ICT startups and high-growth companies are available from the Brussels Regional Investment Company (BRIC), Business Angels network (BeAngels), a series of venture capital funds active in the seed or early stage (Sherpa Invest), the Participation Fund, the Warranty Fund and commercial banks.
- Public subsidies and interest-free loans: subsidies and loans to support companies’ scientific research and technical development efforts are provided by the ISRIB (Institute for the Encouragement of Scientific Research and Innovation of Brussels).
- Financial and promotional support for exporting: support can be obtained from Brussels Export.
NICT Business Unit of the Brussels Enterprise Agency
The NICT Business Unit of the Brussels Enterprise Agency offers tailored services and advice to ICT companies, and manages clusters in order to increase synergies between players in the ICT sector. Its services include:
- Identification of technology needs.
- Technological and commercial project validation.
- Analysis of business plans.
- Search for sources of finance.
- Promotion of technical and commercial partnerships.
- Search for strategic information.
- University and business collaboration.
- Organisation and participation in international events.
- Internet watches through.
The 'NICT Business Unit' is also an active member of the Enterprise Europe Network (EEN) set up by the European Commission to encourage transnational partnerships.
For more information visit www.itscan.be
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