IT Geographics

Overview

Caracas is the most populated and advanced city in Venezuela, but Merida, home of the State Bicentennial University, is Venezuela's high-tech technopolis. There are more than 150 technology research centers in the state. Furthermore, this state has incentivized investment by providing a free trade zone and granting businesses special tax privileges. Merida's population is young, innovative, and well-trained.

Merida-Venezuela's "Silicon Valley"

Merida is a well-known center of high-quality educational institutions, natural beauty and a high standard of living. Additionally, it is working to establish itself as the nation's information-technology capital (1).

"Our goal is to develop a strategic area similar to California's Silicon Valley," said Merida State Governor William Davila Barrios (2).

A free trade zone is being established in the region, the country's first, to encourage foreign investment by high technology firms, among others. The state is also offering concessions to corporations like Microsoft to try to convince them to establish Latin American headquarters in Merida.

The state's Bicentennial University of the Andes is considered the most important school in the country and the most advanced in the area of scientific production research. There are also thirteen other university level institutions with more than 40,000 students in every technical area (3).

Merida also has more than 150 research facilities, mainly specialized in the domain of science and technology. Locally based companies also manufacture instruments and laboratory equipment used in advanced scientific research.

"This state is filled with energetic young people with creative and new ideas. We have always believed that it is our knowledge that will contribute most to our growth. This is what will truly lead to our success," said Gov. Davila Barrios. "Investors can definitely take advantage of the region's low cost, inexpensive production costs and well-trained human resources."

The State's idea for the free zone was conceived from a desire to commercialize and build on its technical knowledge. A national law incorporated in 1995 provides the necessary framework for the duty-free zone. An Interdisciplinary Network Management Unit was also created to guarantee efficient system of operations. As soon as regulations are approved and customs offices are instituted, the tax arrangement will be put to use.

Companies will have the opportunity to import, sell, export and re-export to any part of the world. Upon registration and authorization, businesses will be granted special tax privileges.

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