Strategic Risks for Knowledge-Based Evolution of the National Economy

Abstract

The article contains an analytical review of statistics and facts on science, technology and innovation in Ukraine as a critical factor for economic growth. A review of results of “The Readiness for the Future of Production Report 2018” of the World Economic Forum, classifying Ukraine in the fourth group of countries referred to as outsiders of the high tech industrial development. From the review it follows that in view of the global experience Ukraine needs to outline strategically ambitious goals of the innovation-driven development of the economy and society. It means that the state power in Ukraine has to face a strategic challenge: to join the group of leading countries with the advanced production base and strong positions (drivers) for the production in future. A comparison of key indicators of the industry (share of manufacturing industry in GDP; value added in the industry as the percentage of GDP; share of high tech product exports in the total industrial exports; share of capital investment in GDP) and R&D (R&D personnel per 1million population) in Ukraine and selected countries is made. With respect to the innovation infrastructure it is stressed that interactions between entities engaged in innovation are by far and large formal, which is, inter alia, explained by weaknesses of the innovation infrastructure. Although the importance of building up the innovation infrastructure was recognized at high political level, in the Directive of the Cabinet of Ministers of Ukraine “On Approval of the State Targeted Economic Program ‘Creation of Innovation Infrastructure in Ukraine’ for 2009—2013”, the Program has never been funded from the public budget, being implemented in limited scopes and supported only by local budgets and external funds of various origins. Quite many entities of the innovation infrastructure, although formally created, have never operated in fact.

The analysis shows that throughout the years of Ukraine’s independence, the national science and technology policy has generated the increasing risks of Ukraine’s integration in the global science and technology area. A schematic model of the national innovation system that is to be sought by Ukraine is constructed. The ways for overcoming social and political obstacles to Ukraine’s modern approaches to creating favorable conditions for the development of domestic science and innovations are proposed.