Academy Review (Jan 2025)
REPRODUCTION OF BUSINESS POTENTIAL IN UKRAINE
Abstract
The article examines the impact of Ukraine’s EU candidate status on the innovative component of business economic security. It emphasizes the importance of innovation for business and the role of the EU in promoting innovative practices. The article analyzes the current state of Ukraine’s economy and its readiness to implement EU standards and practices in the field of innovation under martial law. It also discusses the challenges, threats, and opportunities that Ukraine’s status as an EU candidate provides for businesses, particularly in terms of strengthening economic security through the integration of innovation. The article outlines Ukraine’s rankings based on indices of innovative capacity from 2015 to 2022. It presents the dynamics of funding for Ukraine’s scientific sector from both the general and special funds of the state budget between 2018 and 2022. It was found that, in 2022, the volume of expenses for financing the scientific sector increased both through the general fund (by 10.80% compared to 2021) and the special fund (by 41.55%). The article also explores innovative economies, categorizing countries by their level of income per capita according to World Bank data. It examines the introduction of innovative products in Ukraine during martial law, particularly through cooperation with international partners and companies such as USAID, Microsoft, Google.org, and Rakuten. Emphasis is placed on improving the legislative framework regulating Ukraine’s innovation potential, including the adoption of the draft Law “On Innovation Parks”. It is emphasized that, in order to address the challenges outlined in the Sustainable Development Goals, a new innovation policy framework is necessary. This framework could be supported by the adoption of the Strategy for the Development of the Innovation Ecosystem in Ukraine, which aims for transformational change. It will be based on a critical analysis of obstacles, challenges, and threats to the implementation of innovations by researchers and businesses in key areas for reconstruction, as well as gaps in the management of innovation policy. Finally, the article highlights the adoption of the Innovation Development Strategy until 2030, which is based on three key principles: first, the development of the Ukrainian innovation ecosystem, which includes creating conditions for the free emergence and circulation of ideas, and supporting research institutions, innovative start-ups, and technology companies; second, a multilateral state policy to support innovation, ranging from deregulation to national programs; and third, the stimulation of innovation and the development of technologies that address both current and future pressing issues.
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