INNOVATION-DRIVEN AND INDUSTRIAL DEVELOPMENT OF UKRAINIAN REGIONS: PROSPECTS AND LIMITATIONS

Abstract

The war in Ukraine negatively affected the innovation-driven and industrial development of regions and exacerbated the systemic problems of technological backwardness of enterprises. This requires the development and implementation of effective regional policy tools for innovation-driven and industrial development on a sound scientific and analytical base, which is the purpose of the study. A comprehensive assessment of the positioning of Ukrainian regions using appropriate indicators made it possible to identify key limitations of innovation-driven and industrial development of regions, which lead to an increase in the gap between the center and other regions.

Based on the methods from state strategic documents, indicators that affected the state of innovation-driven and industrial development of regions are determined, namely: economic efficiency, investment and innovation-driven development, financial self-sufficiency, labor market efficiency, foreign economic activity, environmental condition, etc.

It is shown that due to the relocation of industrial enterprises, there was a diversification of production and economic activities, a change in organizational and entrepreneurial culture through a combination of experience, management skills, and fast decision-making, which in general had a positive impact on the development of the business environment and the stimulation of competition in the regions.

The best practices from foreign experience in the development of industrial parks are summarized. The industrial parks are regarded as a practical tool of industrial policy for the formation of a favorable environment for the innovation-driven and industrial development of regions by improving the regulatory norms of the legislation on expanding the list of industrial park participants’ activities; establishing the concept of "eco-industrial park"; regulating the rules for placing other facilities, besides industrial ones, within the industrial park; regulating the transfer of land ownership from the initiator of the industrial park to another legal entity; improving the procedure for inclusion and exclusion from the Industrial Park Register of Ukraine, etc.

The tools for effective state support for innovation-driven and industrial development are substantiated. These are aimed at creating a favorable environment for the diffusion of innovations and support for regional producers, which will contribute to solving the problem of external movement of Ukrainian business in the interests of national economic growth and strengthening the defense capability of Ukraine.