In recent years, we have seen an increasing expansion of global tech giants into the Polish market. In February alone, Prime Minister Donald Tusk met with Sundar Pichai from Google and Brad Smith from Microsoft. On the one hand, we should of course be pleased because it means that Poland is an attractive location for investment. And the decisive factor is no longer cheap labour, but above all the stable internal situation and access to high-class specialists on the domestic market. For the sake of consistency, I will ignore the fact that Intel ultimately withdrew from building a factory in Miękinia (the reason was not the location, but the company's financial problems). On the other hand, these investments carry many risks, which in my opinion outweigh the profits. This, in turn, should make us (and especially our rulers) reflect more deeply. If I were malicious, I would probably say that they have already had several opportunities to do so and have not taken them. For example, by selling a substantial part of the Polish critical infrastructure in the form of Telekomunikacja Polska to a French entity with state participation. But I am not malicious, so I will keep quiet about that.
Both political and social benefits arise from such investments. It is often the case, however, that political benefits are socially disadvantageous, and what at first glance looks like a social benefit is in fact a rotten egg that benefits only a few. This is also the case here.
Firstly, new jobs will be created. Admittedly, not where they are most needed, i.e. in smaller towns, but they will be created. Both Google and Microsoft are focusing on Poland's four largest cities: Warsaw, Krakow, Wroclaw and Gdansk. There is no shortage of work there.
The expansion of data centres and network infrastructure by big tech will naturally contribute to the modernisation of Poland's digital infrastructure. Even in the event of major turbulence (e.g. many businesses withdrawing from Russia due to sanctions), companies can withdraw from the country operationally, but they will not take the infrastructure in which they have invested with them. Such moves also show other investors that Poland is a country in which it is still safe to invest, and this can attract other businesses.
However, I see the first serious threat here: these new businesses will come from abroad again. With the approach of our government to domestic investment and support for local businesses, that is exactly how it will end. The Germans and French will follow the Americans, and the Poles will at best be subcontractors. Because building something from scratch involves risk and is not such an impressive quick win. In an election campaign, it does not look as good as attracting a global giant.
Opening new data centres and AI centres also clearly undermines the position of existing Polish national and sectoral clouds, such as the idea of the Polish Cloud. Google or Microsoft can not only offer services at a similar quality level at a lower price (due to the scale of their operations), but above all, they can also use brain drain from the domestic market. The best specialists, tempted by relatively better salaries abroad, often decide to move to the USA.
However, I see the greatest threats in my field:
Google, like any other global corporation, collects huge amounts of data about its users. In the case of Poland, this means that even if this data is stored and processed in our country, we have no real control over it - it is the property of a private company. It is also no secret that companies use user data to train their artificial intelligence models. This means that the general public is the raw material for the production of tools that will then be sold to us for quite real money, the vast majority of which will end up overseas. Programmers and engineers, however, find themselves in a curious situation, because they become both the creator and the material.
The last, but not least, threat I see is, of course, the uncertainty of business decisions. You always have to take into account the possibility I mentioned earlier, i.e. that a company will simply decide to change its location. Google, for example, currently employs around 8,000 people in Poland, and new investments mean the recruitment of even more specialists. Their departure from our country will mean that as many people will lose their jobs as live in Kruszwica.
What to do and how to live?
Google's presence in Poland brings with it both potential benefits and serious threats. It is crucial that the Polish government and entrepreneurs develop a strategy that will allow us to reap the benefits of the presence of global giants while minimising the associated risks. Care should be taken to:
Strengthen national data protection regulations to give Polish citizens real control over their information. This can be achieved by introducing stricter regulations on the collection, processing and sharing of personal data by technology companies. Or through proper enforcement of existing regulations, i.e. increasing the powers of the Office for Personal Data Protection (UODO) to inspect and impose penalties on companies that violate the law. The UODO should be able to effectively enforce the law and impose severe financial penalties on companies that do not comply with data protection regulations.
In the long term, our government should also promote and support the development of technologies and solutions that increase data privacy and security. It is necessary to invest in research and development in the area of cybersecurity and privacy, as well as to support domestic companies that create innovative solutions in this area.
We must also not forget about the work at the grassroots level, i.e. educating the public about the protection of personal data and other sensitive data. It is important that Poles are aware of their rights and the risks associated with sharing personal data online.
To avoid excessive dependence on foreign technologies, it is necessary to invest in the development of domestic companies and innovation. This can be achieved by:
Simplifying administrative procedures for start-ups, providing access to funding and mentoring, and promoting cooperation between start-ups and large enterprises.
Increase spending on research and technological development, and promote cooperation between universities and businesses. But seriously, not just for show.
Promote Polish technologies in foreign markets and facilitate their access to public procurement. For example, through extra points for Polish entrepreneurs in the process.
Companies that invest in new technologies and create innovative products and services should be rewarded.
In order to ensure Poland's competitiveness in the global technology market, it is necessary to invest in education and staff development:
The promotion of science and technology from an early age and access to modern tools and technologies for pupils and students.
Access to training and courses in digital technologies for Poles to enable them to actively participate in the digital economy.
Talent development should be supported and young people should be encouraged to pursue careers in the technology sector.
Internships and apprenticeships in technology companies, as well as joint research and development projects, should be promoted.
To ensure the security and stability of the Polish technology sector, it is necessary to diversify technology sources and avoid excessive dependence on a single supplier. This can be achieved by:
Avoiding vendor lock-in situations in which Poland is dependent on a single supplier, e.g. an American one.
Supporting technologies that are based on open standards and enable different systems to work together.
Co-operating (on the basis of partnership, not subservience) with other EU countries to develop the European technology sector.
Investments in national research and development in technologies that can replace solutions offered by global giants.
These are not sexy activities that win elections. But they are essential if we want to maintain technological sovereignty in any dimension.
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Very informative article and good perspective! 👏
Interesting take on this topic!