DETERMINANTS OF INCREASING THE INNOVATION CAPACITY OF UKRAINE

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Published: Aug 25, 2023

  Olena Zayats

  Τomash Yarema

  Olena Pryiatelchuk

Abstract

Modelling the development of innovative power is an integral tool for finding ways to ensure the country's competitiveness and post-war recovery to accelerate European integration processes using its technological uniqueness. The innovative vector of economic development is a priority mechanism for the formation of competitive positions at all levels of the world economic system. The main purpose of this paper is to use modelling to identify the key determinants of the development and increase of Ukraine's innovative power, which should be crucial for the post-war recovery of the domestic economy. Methodology. The econometric model describes the efficiency of the use of Ukraine's innovative capacity and highlights its weaknesses. It is necessary to pay special attention to them in the period of post-war reconstruction. Both a correlation matrix of these factors and a regression model of their interdependencies were developed based on the assessment of a number of determinants affecting the formation and growth of innovative power. Results. The econometric modelling made it possible to obtain statistically significant two-factor linear models in which the share of R&D costs and the number of innovative products implemented were the independent variables. The commercialisation of R&D, in particular patenting, which reflects the effectiveness of scientific activity, appears to be very important. Business shows the highest rates of technology implementation. It creates a platform for further stimulation and development of relevant innovations. Practical implications. In the context of European integration processes, it is important to highlight those factors that would become advantages for strengthening the innovative power of Ukraine and to use them as a priority in the formation of the state policy of post-war reconstruction. The intensity of research and development and the introduction of advanced innovations, the innovative activity of the society and its functionality depend on the effective innovation policy of the state, the current state of the economy, the availability of a systematised base of institutes and institutions ensuring scientific and technical activity, modernised infrastructure, specialised information and consulting centres, etc. Value/originality. It has been proved that the priority of the innovative component of the domestic state policy is an undeniable condition for the effectiveness of the development of the economic system at the present stage of turbulence in the conditions of the Russian-Ukrainian war. At the same time, the obvious advantages of innovativeness are cancelled out by the presence of high costs for the development of innovations, a decrease in the activity of commercialisation of inventions, and the imperfection of the intersectoral distribution of funds for research and development.

How to Cite

Zayats, O., YaremaΤ., & Pryiatelchuk, O. (2023). DETERMINANTS OF INCREASING THE INNOVATION CAPACITY OF UKRAINE. Baltic Journal of Economic Studies, 9(3), 108-115. https://doi.org/10.30525/2256-0742/2023-9-3-108-115
Article views: 368 | PDF Downloads: 222

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Keywords

innovation capacity, competitiveness, costs, commercialisation, technology, development

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