EdTech Landscape in Ukraine: Smart Education Future in Digital Age

Maryna V. Nehrey

1 a

, Larysa M. Zomchak

2 b

and Abdel-Badeeh M. Salem

3 c

National University of Life and Environmental Sciences of Ukraine, 15 Heroyiv Oborony Str., Kyiv, 03041, Ukraine

Ivan Franko National University of Lviv, 1 Universytetska Str., Lviv, 79001, Ukraine

Ain Shams University, El-Khalyfa El-Mamoun Str., Abbasia, 11566, Cairo, Egypt

Keywords:

Digital Education, EdTech, Technological Innovation, Startup, Efﬁciency.

Abstract:

The digitalization of education is much slower than in other areas, due to the high cost of digital solutions

and their complex functionality. Recently, the situation is changing, and now education can get real beneﬁts

from technology with simple software solutions. Analysis of the effectiveness of education has shown that the

countries of Europe and Central Asia have signiﬁcant potential for the development of education. Technologies

used in education used in Tutoring, Language learning, MOOC, School Education (K-12), STEM & coding,

Robotics, Information platforms, for teachers, LMS (learning management system), IT Education, Upskilling,

Tools, and Talent. These technologies provide an opportunity to improve learning processes and increase

its efﬁciency. In 2020, the EdTech startup ecosystem of Ukraine has more than 80 startups that have been

used for education. SWOT-analysis indicate that the EdTech startup ecosystem is characterized by more

weaknesses and threats than strengths and opportunities. Ukrainian education has signiﬁcant potential for

increasing efﬁciency and development.

1 INTRODUCTION

The modern world is a world of technology, digital-

ization, and rapid change. The digitalization of educa-

tion is much slower than in other areas due to the high

cost of digital solutions and their complex functional-

ity. However, COVID-19 and the lockdown caused by

it signiﬁcantly changed the situation in education (Na-

garaju et al., 2020; Polhun et al., 2021). The growth

rate of education digitalization during the pandemic

has only accelerated and education can beneﬁt signif-

icantly from technology through simple software so-

lutions. All this contributes to the intensiﬁcation of

cooperation between universities, business, and sci-

ence. Universities have a need for modern technolo-

gies that will promote effective communication be-

tween all participants in the educational process. Ac-

cordingly, the niche of digital solutions for education

and science has grown, to which business responds

by offering new products and services. The devel-

opment scenarios dictated by the pandemic include a

further increase in the share of online education in in-

https://orcid.org/0000-0001-9243-1534

https://orcid.org/0000-0002-4959-3922

https://orcid.org/0000-0003-0268-6539

vestment, audience reach, and the absolute number of

professionals employed in it.

EdTech research and digitization in education

have become widespread in recent years. Education

innovation in digital era is studied in (Abad-Segura

et al., 2020; Hashim, 2018; Haywood, 2018; Salem

and Voskoglou, 2020; Yuliati and Lelawati, 2019).

Some directions of use of innovative approaches in

education are covered in (Abdel-Basset et al., 2019;

Babenko et al., 2021; Dimitrov et al., 2019; Hariha-

rasudan and Kot, 2018; Pinchuk et al., 2020; Salem,

2019; Sousa et al., 2019; Syvyi et al., 2020; Tkachuk

et al., 2020; Volkova et al., 2019). Discussion on

the analysis of the impact of innovations on the ed-

ucational process is presented in (Kholiavko et al.,

2020; Kuzminska et al., 2020; Savchenko et al., 2018;

Vlasenko et al., 2021; Zhilenkova et al., 2019).

2 MATERIALS AND METHODS

In recent years, educational services are increasingly

in demand. The concept of lifelong learning, which

is implemented through personal and corporate edu-

cation, has become widespread. In particular, compa-

nies understand that it is much cheaper to teach new

434

Nehrey, M., Zomchak, L. and Salem, A.

EdTech Landscape in Ukraine: Smart Education Future in Digital Age.

DOI: 10.5220/0010932500003364

In Proceedings of the 1st Symposium on Advances in Educational Technology (AET 2020) - Volume 2, pages 434-443

ISBN: 978-989-758-558-6

employees than to look for a specialist who has new

skills and knowledge. However, there are signiﬁcant

differences in the effectiveness of education in differ-

ent countries. We evaluate the effectiveness of edu-

cation in different countries using Data Envelopment

Analysis (DEA).

According to the concept of Farrell‘s economic ef-

ﬁciency (Farrell, 1957), each set of resources (market

inputs) is characterized by a maximum of production,

and the actual values of market products represent the

degree of achievement of this maximum. Productions

that provide the maximum market output per unit of

market introduction, acquire the status of “standard”

and form a “productivity limit”. The task of the analy-

sis is to compare objects in terms of efﬁciency of their

resource base and determine the distance between the

enterprise and the “productivity limit”. To do this, the

following methods are used:

• parametric – involves the formation of the produc-

tion function for production standards by meth-

ods of mathematical statistics (construction of the

stochastic limit of production capacity; adjusted

least squares);

• non-parametric – determine the limits of produc-

tion capacity (maximum proﬁtability in the mar-

ket) for any combination of resources (Data En-

velopment Analysis – DEA).

The data analysis model (DEA) was developed by

Michael Farrell in 1957. Farrell (Farrell, 1957) evalu-

ated the effectiveness of one unit of the ﬁnal product

with one input and one output. The advantage of the

DEA method is that it allows you to deﬁne a remote

function for a multi-production system and does not

require speciﬁcation of the type of production func-

tion or cost function (which is necessary when using

parametric methods).

The criteria of efﬁciency in the DEA methodology

are the achievement of the Pareto optimum (Pareto

et al., 2007), which is determined by the maximum

possible volume of production at the existing tech-

nological level and resource provision. The DEA

method allows: to determine the aggregate indicator

for each studied object in the framework of the use

of market inputs to market issues; take into account

environmental factors; not be limited to the func-

tional form of dependence between inputs and out-

puts; identify priority areas for productivity growth;

assess the necessary changes in market input/output

indicators, which would bring the object to the limit

of efﬁciency.

The ﬁrst DEA model was developed by Charnes

et al. (Charnes et al., 1978) in 1978. Further develop-

ment of DEA-models is characterized by two-vector

in accordance with the inﬂuence of the scale of pro-

duction.

Formally, this algorithm involves solving the opti-

mization problem:

maxe

∑

j=1

∑

i=1

, (1)

∑

j=1

∑

i=1

, m ≤ 1, n, (2)

, v

, . . . , v

≥ 0, (3)

, u

, . . . , u

≥ 0, (4)

where e

is the efﬁciency of the researched enterprise;

n is the number of studied objects; r is the number

of objects included in the comparison range; s is the

number of objects that were selected for the latter af-

ter comparison; x

– the value of the i-th market range

of the studied object; y

– the j-th market type of the

studied object; x

– the i-th input factor of the m-th

object; y

– the j-th output of the m-th object; v

the value of the range of different objects; u

is a sig-

niﬁcant number of analyzed objects j.

The target function is aimed at proportionally in-

creasing the market outputs of the studied objects

to the limits of efﬁciency, a variant of this model is

called the output-oriented model.

3 RESULTS AND DISCUSSION

3.1 Analysis of Education Efﬁciency

The evaluation of the effectiveness of education in

Europe and Central Asia by the DEA method, where

the input – Expenditure on education, output – GDP

per capita (ﬁgure 1).

The results of the analysis showed that effective

education (efﬁciency coefﬁcient equal 1) in Greece,

Italy, Ireland, and Switzerland. Norway, France, Aus-

tria, Germany, Finland, the Netherlands, and Iceland

are close to the efﬁciency curve. That is, European

countries, in general, have experience in the effective

expenditure on education. As for Ukraine, the expen-

diture on education is extremely inefﬁcient, a simi-

lar situation in Georgia, the Russian Federation, and

Moldova (ie in the countries of the former USSR).

Employee education is the key to a company’s

success. That is why companies try to get highly ed-

ucated employees and maintain their qualiﬁcations at

EdTech Landscape in Ukraine: Smart Education Future in Digital Age

435

Figure 1: Data Envelopment Analysis of expenditure on education.

a high level. To assess the effectiveness of education

in Europe and Central Asia, built a model of DEA,

where inputs – GDP per capita, Internet users (per 100

people), Expenditure on education as (% School-age

population, output – Labor force with advanced ed-

ucation (% of the total labor force). The simulation

results are shown in the table 1.

DEA model analyzing efﬁciencies by VRS tech-

nology and input orientated efﬁciency. A number of

countries with efﬁciency equal 1 are 21 out of 44,

mean efﬁciency: 0.922.

The results show that efﬁciency is lower in those

countries that incur signiﬁcant expenditures on edu-

cation. Conversely, countries with low spending on

education have shown high efﬁciency. For example,

Ukraine has an efﬁciency of 1, Labor force with ad-

vanced education – 72.15, GDP per capita - 3095.17,

Internet users (per 100 people) – 89.74, Expenditure

on education – 13.05, School-age population – 3.9

million. Germany, the efﬁciency of which is 0.72, has

Labor force with advanced education – 73.56, GDP

per capita – 47603, Internet users (per 100 people) –

71.13, Expenditure on education – 11.04, School-age

population – 2.5 mln.

Analysis of education efﬁciency in different coun-

tries has shown that there is great potential for pro-

ductivity increases. Therefore, the implementation of

innovations in education is promising.

3.2 Investing in Educational Startups

Holon IQ is an international analytical agency

founded in 2018 (HolonIQ, 2018). Initially, the com-

pany invested in educational startups but switched to

market analysis to help more projects. According to

the Holon IQ estimates (ﬁgure 2), global education

venture capital funding in 2020 increased to $16.1 bil-

lion, which is more than twice that in 2019. Logically,

this is a direct consequence of the COVID-19 pan-

demic and the quarantine that forced everyone around

the world to go online. In the context of expected

changes in the structure of the labor market, EdTech

tools will continue to be in demand for the acquisition

of new skills and retraining of employees. Note that

China invests the most in educational programs, for

example, US funding is 2 times less than China, and

European funding is 10 times less (in total for the last

10 years).

Global EdTech started the last decade with $500m

of Venture Capital invested in 2010 and ﬁnished 32x

higher at $16.1B in 2020, nearly 2x the previous in-

vestment record in 2018.

If we talk about the structure of venture ﬁnanc-

ing of educational projects, the largest share falls on

corporate education, slightly less on school, and only

16% on higher education (ﬁgure 3).

HolonIQ listed the 100 best EdTech companies in

Eastern Europe, where 11 projects from Ukraine are

included. The rating is based in:

• companies market positions;

• demand and quality of products;

• ﬁnancial stability;

• attractiveness for investment;

• development progress and dynamics;

• project team.

AET 2020 - Symposium on Advances in Educational Technology

436

Table 1: Data Envelopment Analysis of education effectiveness.

Efﬁciencies range Number of % Countries

countries

0.7 ≤ E < 0.8 5 11.4 Belgium, Denmark, Germany, Netherlands,

United Kingdom

0.8 ≤ E < 0.9 10 22.7 Austria, Czech Republic, Finland, France, Ireland,

Norway, Russian Federation, Spain, Sweden, Switzerland

0.9 ≤ E < 1 8 18.2 Albania, Belarus, Bulgaria, Hungary, Italy,

Poland, Slovak Republic, Slovenia

E = 1 21 47.7 Croatia, Cyprus, Estonia, Georgia, Greece, Iceland,

Latvia, Lithuania, Luxembourg, Moldova,

Portugal, Romania, Serbia, Turkey, Ukraine

Figure 2: Global education venture capital funding, 2010–2020 in USD Billions (HolonIQ, 2021).

Ukrainian EdTech projects listed in the HolonIQ

rating:

• Basenji Apps – applications for English learning;

• EnglishDom – online school of English learning;

• Enguide – service for choosing English courses in

Kyiv;

• Speechyard – service for learning English by

movies;

• Besmart – preparation courses for ﬁnal exams at

school;

• SkillUp – training courses for IT specialists;

• Skyworker – service for ﬁnding IT vacancies;

• Jooble – job search service;

• Parta – educational portal;

• Studway – media about education;

• Vseosvita – service for continuing education.

As we can see, the most popular are services for

learning English. But there are nearly 80 digital ed-

ucation projects in the Ukrainian EdTech landscape.

EdTech Landscape map of Ukraine (ﬁgure 4) was pro-

posed by Vadym Synzheretskyi (CEO and co-founder

of BUKI online platform for tutors).

3.3 Ukraine EdTech Ecosystems

Analysis

Synzheretskyi (Synzheretskyi, 2020) proposed to

cluster EdTech ecosystem of Ukraine in such a way:

Tutoring; Language learning; MOOC; School Edu-

cation (K-12); STEM & coding, Robotics; Informa-

tion platforms; For teachers; LMS (learning manage-

ment system); IT Education; Upskilling; Tools; Tal-

EdTech Landscape in Ukraine: Smart Education Future in Digital Age

437

Figure 3: EdTech Venture capital deals by Segment (HolonIQ, 2021).

ent. Let’s look at the examples from each group.

Preply (Preply, 2021) is an online educational

platform that connects tutors and teachers (from

185 countries) with students, locally or virtually via

Skype. In March 2020, the Ukrainian EdTech mar-

ketplace for the study of foreign languages Preply got

$ 10 million, almost twice the amount of all previ-

ous investments ($ 5.6 million). The service uses ma-

chine learning algorithms to match tutors. The com-

pany plans to launch new tools for teachers that will

help assess homework, monitor progress, and help

students more effectively. The company also plans

to develop a mobile application for Android and iOS.

EnglishDom (EnglishDom, 2021) is an online

English school and at the same time an IT company

that inspires to learn English through technology. The

company is one of the leaders in the ﬁeld of EdTech

in Eastern Europe. The EnglishDom platform in-

cludes 5 innovative services for learning English, in-

cluding mobile applications and an interactive digital

textbook. The service unites more than 500 English

teachers and 50,000 users.

Prometheus (Prometheus, 2021) is a mass online

courses platform called “Ukrainian Coursera”. The

main goal of the project is to provide free online ac-

cess to university-level courses to anyone, as well as

to provide opportunities to publish and distribute such

courses to leading professors, universities, and com-

panies. Upon completion of the course, the student

receives a certiﬁcate signed by the best teachers of

Ukrainian universities. Today the platform has more

than 300 thousand active users. Prometheus has or-

ganized its free online in-service training courses for

educators in accordance with the requirements of the

Procedure for in-service training of pedagogical and

research and teaching staff. Prometheus online course

certiﬁcates for educators can be ofﬁcially credited as

advanced training.

EdPro (EdPro, 2021) is one of the few Edtech so-

lutions for school education. This interactive panel

can replace several objects in the classroom at once

– a blackboard, a projector, an interactive screen, and

a computer. In such panels, teachers can show stu-

dents presentations, videos, graphics, or images dur-

ing lessons. Instead, students can solve learning tasks,

count, or edit texts right away. Along with the board,

they also developed an interactive software solution

for education with illustrations and animations. Ap-

parently, the next interesting area of EdTech will be

the use of augmented and virtual reality technologies.

The development of this area will lead to the fact that

students will increasingly move from passive to active

learning and will be able to interact in real-time with

educational material, which will stimulate their moti-

vation and increase the level of interest. This opens

up exciting prospects for teaching new generations.

Osvitoria (osvitoria.org, 2021) propose interest-

ing and up-to-date news about modern education and

stories on how to change the system of education in

any conditions and become a better version of your-

self every day. They create a user-friendly platform

for teachers and parents to help them ﬁnd answers to

AET 2020 - Symposium on Advances in Educational Technology

438

Figure 4: EdTech Landscape of Ukraine (Gritcyk, 2020).

their children’s education and upbringing and to in-

volve parents in the learning process. They try to

give teachers effective tools for communication, the

opportunity to learn about the best practices of teach-

ing abroad, the latest news on education reform.

In addition to quality analytics, there are many dif-

ferent selections, articles about the needs of students

and teachers with options for proposals that can be

done in a particular situation. Teachers can take great

advice to improve their work, and parents – to im-

prove the well-being or performance of their children.

The educational project Na Urok (naurok.com.ua,

2021) aims to objectively cover the modern educa-

tional process and bring it to a qualitatively new level.

This became possible due to the implementation of

versatile and thorough work: writing informative ar-

ticles related to school and extracurricular life; con-

ducting thematic webinars; introduction of various

educational competitions; attracting the best develop-

ments in school subjects from teachers from all over

Ukraine. The project aims to help teachers feel their

own signiﬁcance because each teacher in the project

EdTech Landscape in Ukraine: Smart Education Future in Digital Age

439

Table 2: Comparative study of the EdTech projects.

EdTech project Type Advantages Disadvantages

Preply Tutoring Reaching a large audience. Communication local or

The use of machine learning Skype. Absents of mobile

in management. applications.

EnglishDom Language Use innovative services and Lack of ofﬂine support.

learning mobile applications. Reaching

a large audience.

Prometheus MOOC Use mobile applications. The audience is limited to

Reaching a large audience. Ukrainian-speaking users.

EdPro School Use innovation technologies. High cost of the product

Education Good motivation for students.

Opportunities for different

applications.

Osvitoria. LMS A large amount of information Lack of mobile application

Media about various aspects of

the educational process

Na Urok Information A good motivational No mobile application.

platforms approach. Coverage of a large A small audience of parents

number of educational topics. and students.

eTutorium For A successful solution for Having strong competitors

teachers organizing online learning. with free solutions.

Great prospects for further

development.

Mate academy IT Opportunities to expand Risks of non-payment for

Education the audience. Large set of training.

programming courses.

Grammarly Tools Ease of use. Wide audience of English spelling only.

users. Constant demand for

products.

will be able to publish their own professional achieve-

ments or use the work of colleagues. The project is

set up to work closely with educators who want to

share their experiences on the Internet. The Na Urok

team makes a signiﬁcant effort to ensure that teachers,

parents, and students can ﬁnd the maximum amount

of useful theoretical and practical materials for the

school on the portal.

The eTutorium (eTutorium, 2021) project aims

to organize distance learning through the implemen-

tation of effective IT solutions. The project arose

in 2008 from attempts to create their own webinar

platform to conduct online events. After analyzing

the needs of the eLearning market, in 2010 the team

moved on to developing solutions for online tutors.

Today, the platform hosts between 3,200 and 5,000

webinars per month. In 2015, we launched the eTuto-

rium project, combining an updated platform for eTu-

torium Webinars and eTutor Academy – the Academy

of Tutors, where we share our experience and knowl-

edge in the ﬁeld of online learning. In 2019, they cre-

ated eTutorium LMS – a system of distance learning,

with which you can not only collect courses but also

fully organize the learning process online.

Mate academy (Mate academy, 2021) is an on-

line platform for learning programming and ﬁnding

your ﬁrst job in IT. The training lasts 4-5 months

and takes place online. Now in the portfolio of Mate

academy courses includes Java, Front-end, Full Stack

Web, UI / UX Design. The peculiarity of the plat-

form is that students pay for their studies only in case

of employment, giving a percentage of the new salary.

During the existence of Mate academy, more than 200

students got jobs. In 2020 the company was planning

to open a business in new markets; They looked at the

country, where there is a great demand for engineers

and the road, for no worse than the knowledge. The

aim of the company in 2022 there were a number of

thousands of engineers in Ukraine and the English re-

gions – for example, Great Britain and India.

Grammarly (Grammarly, 2021) is one of the

most famous Ukrainian startups. This is a service for

checking written texts. It helps to correct grammati-

cal and stylistic errors. A free version is available, as

AET 2020 - Symposium on Advances in Educational Technology

440

Table 3: SWOT analysis on EdTech system.

INTERNAL FACTORS

Strengths Weakness

The government starts to implement digital The high cost of innovative technologies.

technology in education. Problems with ﬁnding ﬁnancing.

There is a demand for digital education and The delayed effect of digital technologies

innovative technologies in education from both implementation can decrease the effect of its

business and private. realization.

Effective solutions that promise an increase in Unreadiness for change. The established habits

productivity of teachers and the lack of new skills and

abilities.

Bureaucratic hurdles for starting a business.

Underdeveloped IT infrastructure

Lack of information on the effectiveness of

EdTech.

EXTERNAL FACTORS

Opportunities Threats

Education is a big area with a lot of students and If the EdTech is not reliable enough and accessible

pupils, which can demand many EdTech projects. to attackers, the danger may arise for education.

The application of EdTech produces a lot of data The probability of different EdTech results in

that can be used for agriculture development. different conditions.

EdTech can signiﬁcantly reduce the need for Access to data can increase inequalities, impede

teachers and administrated staff. competition, and create economic barriers.

well as Premium, which expands access to additional

features. The company’s head ofﬁce is now located in

Silicon Valley, and the service was founded by three

Ukrainians. In 2019, it became known that the total

amount of investment in Grammarly is about $ 200

million (5 billion hryvnias). This funding has raised

the company’s total value to more than $ 1 billion. So

from now on the Ukrainian startup can be ofﬁcially

called a “unicorn”. Grammarly services are now used

by millions of regular users around the world. We are

talking only about English-speaking users, the devel-

opers do not plan to expand the number of languages

for testing yet. As of 2020, 30 million people use

Grammarly services every day.

3.4 SWOT Analysis on EdTech System

of Ukraine

The key task of education in modern conditions is to

change, adapt to new conditions, and develop. The

analog world is becoming increasingly fragile, and

the digital world is becoming antifragile. COVID-19

not only posed threats to agriculture but also opened

up new opportunities, in particular in digitalization

and the introduction of innovative technologies. In

our opinion, education in Ukraine needs the introduc-

tion of a signiﬁcant number of EdTech, which will

accelerate the development of education and increase

its efﬁciency. SWOT analysis of the EdTech startup

ecosystem is presented in table 3.

4 CONCLUSION AND FUTURE

WORK

Nowadays education needs to improve and increase

efﬁciency. EdTech can become exactly the direction

that will promote the active development of educa-

tion, increase its accessibility and improve its quality.

Analysis of the effectiveness of education has shown

that the countries of Europe and Central Asia have

signiﬁcant potential for the development of education.

The EdTech startup ecosystem is characterized by

more weaknesses and threats than strengths and op-

portunities. Ukrainian education has signiﬁcant po-

tential for increasing efﬁciency and development. To

ensure the realization of this potential, it is necessary

to do the following:

• increase government spending on education, in

particular on the development of innovative tech-

nologies;

• ensure access of EdTech to ﬁnancing;

• accelerate the process of digitalization of educa-

tion, in particular, to promote the spread of afford-

able ICT and introduce e-government;

• increase the interest of non-governmental organi-

zations in the introduction of innovative technolo-

EdTech Landscape in Ukraine: Smart Education Future in Digital Age

441

gies in education;

• create favorable conditions for the development of

EdTech ecosystems.

Further development of the EdTech startup

ecosystem can be a key solution for the development

not only in Ukraine but also around the world.

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