Why do business in Malopolska

Marek Nawara Chairman (Marshal) Of The Malopolska Province

It is with utmost pleasure that I welcome you to one of the most attractive investment regions of Poland. Malopolska, following its tradition and enriched by its unique history, is undergoing a dynamic development process. We wish to take advantage of all our opportunities and encourage those who wish to implement their investment projects in our region.


Malopolska abounds in raw materials: rock salt, petroleum, coal, tin and lead ores, mineral waters, geothermal sources and building materials. Almost 290,000 businesses operate in Malopolska. Malopolska provides 7.2% of Poland’s GDP and has high rates of economic growth.

Foreign investments

In 2006 foreign investment in the region amounted to USD 1,545 million. Foreign direct investments implemented in Malopolska from 1989 until the end of 2006 amounted to ca. USD 8,409 million. Malopolska accounts for ca. 8% of foreign direct investment in Poland.

Labour market

The existence of appropriate work-force resources, and their quality, condition the efficiency of company activities, and the cost of labour is an important factor influencing profitability. At the end of 2007 the number of working age people amounted to over 2 million. Labour costs in the region are close to the national average. At the same time, the level of social activity, which is one of the indicators of workforce quality, is above average.


There are 8 clusters active in the region: — Interregional Cluster of Innovative Technologies MINATECH — LifeScience Cluster Krakow — Tarnow Industrial Cluster — Multimedia and Information Systems Cluster — Malopolska Information Technology Cluster — E-cluster — Malopolska Computer Cluster — Medicine Poland South-East — Malopolska-Podkarpacie Clean Energy Cluster.

Key economic sectors

Malopolska provides attractive development conditions in the following sectors: – High-Tech: considerable R&D and educational potential of higher education institutions, high percentage of population with university degrees and a large number of research staff, fast economic development; – Tourism: numerous spas based on mineral water reserves (Szczawnica, Krynica), development of the accommodation base for tourism, attractive natural and climatic conditions; — Automotive: availability of qualified engineering staff, large number of sub-contractors for the aviation and auto-motive industry, convenient transport links; — BPO: qualified workforce, favourable scientific back-ground and accessible office space. The main companies in the BPO sector: — IT Centre: ComArch, Grupa Delphi Polska, Google, IBM Krakow Software Laboratory, Motorola; — Call Centre: Azsoft Call Center and Contact Center, CBB Call Center, Communication Factory, International Paper; — Shared Service Centre: Affiliated Computer Services, Air-line Accounting Center (Lufthansa group), CapGemini, Tesco Financial Centre, Electrolux, Exult, Hewitt, IBM BTO Business Consulting Services, IFS Poland, KPMG, Philip Morris, PwC Polska, Shell.


34 universities operate within the region. Malopolska is second among Poland’s regions in terms of the number of students: 203,500. Universities offer attractive specialisations: biotechnology, IT, materials engineering, chemistry and process engineering, electronics and telecommunications, chemical technologies, design, economics, finance and banking, management and marketing, language studies (e.g. English, Germanic and Romance languages).


Malopolska has a clear potential for innovation development. Numerous institutions that support it are active in Malopolska, including: Technology Transfer Centre — University of Technology, Jagiellonian University Centre of innovation, Technology Transfer and University Development Jagiellonian Centre of Innovation Ltd. and Krakow Technology Park. Malopolska universities and research centres have a great R&D potential in such fields as biotechnology, IT, product quality and competitiveness, environment shaping and protection in the context of sustainable development, nanotechnology, new technologies in medicine and renewable energy sources. Higher education is highly developed and the ratio of persons employed in the R&D sector to the number of inhabitants is high. Expenditure on R&D activities in Malopolska shows a growth tendency, making the region second in this field in Poland.

Special Economic Zones

Special Economic Zones are areas which offer preferential conditions for investors in the form of tax exemptions and investment grants. Such zones are created in or-der to enhance the social and economic development of the region. They offer well prepared sites for investments, office space for rent and comprehensive services for investors. In Malopolska there is a special economic zone in Krakow (including subzones in Tarnow, Nowy Sacz, Zabierzow, Niepolomice, Dobczyce, Wolbrom, Slomniki, Oswiecim, Gdow, Andrychow and Krosno) and the subzones of the special economic zones from other regions in Gorlice, Wojnicz, and Myslenice. Another form of investment support are Economic Activity Zones (in Bochnia, Chelmek, Chrzanow and Trzebinia, Dobczyce, Limanowa, Myslenice, Niepolomice, 0swiecim Dwory, Tarnow and Wojnicz).

Today, Malopolska is an important place not only for tourists, but above all for investors. Our strength lies in the convenient lo-cation of Malopolska in Poland and Europe, in close proximity to important national and international transport routes, linking the region with the whole world. Malopolska is also a well-recognised European scientific centre. We wish to build bridges between science and industry and support innovative programmes and projects strengthening the potential of the region. Malopolska can be expected to grow to become the most suitable place for investment, while Krakow is bound to continue to be a significant innovation centre.

Polish Market. Nr. 10-11 (146-147) October-November 2008