Post-war industrial modernization: internal and external resources

Authors

DOI:

https://doi.org/10.31617/3.2022(125)06

Keywords:

manufacturing industry, state policy, advanced technology, technological innovations, technology transfer.

Abstract

Introduction. The Ukrainian industry does not have sufficient resources to respond to new threats, as a result, the country was not ready for either the COVID-19 pandemic or military aggression from russia, remaining dependent on the supply of strategic goods from abroad.

Problem. The absence of a purposeful state policy for the development of industry on an innovative basis makes it impossible to accelerate post-war recovery and structural changes in the Ukrainian economy. Decision making and problem solving require appropriate research.

The aim of the article is to identify the main conditions and policy mechanisms that contribute to the accelerated modernization of industry and the emergence of advanced technology industries.

Results. Over the past 20 years, the regulatory framework for regulating industrial activities in Ukraine has undergone significant changes (in parti­cular in the context of the implementation of EU legislation); but the adopted innovative development programs either remained on paper or, due to inadequate funding, did not achieve their goal. The contribution of medium- and high-tech industries to the Ukrainian economy has hardly changed and remains extremely low. The solution to the problem of developing advanced technology industries lies in the formation of a dualistic state policy and the creation of fundamental conditions for its implement­tation. This will ensure, on the one hand, the attraction of foreign technologies, and, on the other hand, the capacity building of existing and the creation of new high-tech enterprises.

Conclusions. Foreign investments and advanced technologies will accelerate the modernization of production processes and the release of new goods in Ukraine; however not only the scale of their involvement is important. The extent to which foreign investment and technology is integrated into national development plans is critical. Therefore, setting priorities and strengthening the role of the state in their implementation will prevent the dissipation of funds (including foreign donors) for post-war reconstruction and focus capital formation in industries that will ensure high multiplier effects in the economy.

Author Biographies

Oleg KREKHIVSKYI, Secretariat of Cabinet of Ministers of Ukraine

PhD (Physics and Mathematics), Senior Desk Officer

Olena SALIKHOVA, State Organization «Institute for Economics and Forecasting of NAS of Ukraine»

Doctor of Science (Economics), Leading Researcher

References

Karakuc, A., Gordijchuk, D., & Shhedrin, Ju. Agrarnyj biznes, metalurgy, IT, himija ta inshi: jak spravy v gigantiv ukrai'ns'koi' ekonomiky [Agricultural business, metallurgists, IT, chemistry and others: how are the giants of the Ukrainian economy doing?]. epravda.com.ua. 2022. https://www.epravda.com.ua/publications/2022/06/6/687837. [in Ukrainian].

Pianta, M. (et al.). (2020). The policy space for a novel industrial policy in Europe. Industrial and Corporate Change, Oxford University Press. (Vol. 29(3), (pp. 779-795). https://doi.org/10.1093/icc/dtz075. [in English].

McCann, P. (et al.) (2021). Rebalancing UK regional and industrial policy post-Brexit and post-Covid-19: lessons learned and priorities for the future, Regional Studies. https://doi.org/10.1080/00343404.2021.1922663 [in English].

Pichler, M. (et al.) (2021). EU industrial policy: Between modernization and transformation of the automotive industry. Environmental Innovation and Societal Transitions, (pp. 140-152). https://doi.org/10.1016/j.eist.2020.12.002 [in English].

Berthold, H., & Ákos, V. (2022). Endogenous sector–biased technological change and industrial policy. Economic Modelling, Elsevier, (Vol. 113). https://doi.org/10.1016/j.econmod.2022.105875 [in English].

Dang Alicia, H., & Samaniego, R. (2022). R&D, Industrial Policy and Growth. JRFM, MDPI, (Vol. 15(8), (pp. 1-42). https://doi.org/10.3390/jrfm15080344 [in English].

Gejec', V. (2010). Liberal'no-demokratychni zasady: kurs na modernizaciju Ukrai'ny [Liberal-democratic principles: course for the modernization of Ukraine]. Ekonomika Ukrai'ny – Ukraine economy, 3, 4-20 [in Ukrainian].

Amosha, O., Zemljankin, A., & Pidorycheva, I. (2015). Udoskonalennja systemy upravlinnja innovacijamy jak umova pryskorennja strukturnyh reform v Ukrai'ni [Improving the innovation management system as a condition for accelerating structural reforms in Ukraine]. Ekonomika Ukrai'ny – Ukraine economy, 9, 49-65 [in Ukrainian].

Mazaraki, A., & Mel'nyk, T. (2010). Innovacii' jak dzherelo strategichnyh konkurentnyh perevag [Innovation as a source of strategic competitive advantages]. Visnyk Kyi'vs'kogo nacional'nogo torgovel'no-ekonomichnogo universytetu – Herald of the Kyiv National University of Trade and Economics, 2, 5-17 [in Ukrainian].

Kindzers'kyj, Ju. V. (2013). Promyslovist' Ukrai'ny: strategija i polityka strukturno-tehnologichnoi' modernizacii'. NAN Ukrai'ny, DU «In-t ekon. ta prognozuv. NAN Ukrai'ny [Industry of Ukraine: strategy and policy of structural and technological modernization. National Academy of Sciences of Ukraine, State University «NASU Institute for Economics and forecasting»]. 536 с. [in Ukrainian].

Mazaraki, A., & Mel'nyk, T. (2022). Svitove gospodarstvo: vyklyky rosijs'ko-ukrai'ns'koi' vijny. [The world economy: the challenges of the Russian-Ukrainian war]. Visnyk Kyi'vs'kogo nacional'nogo torgovel'no-ekonomichnogo universytetu – Herald of the Kyiv National University of Trade and Economics, 143(3), 4-35. https://doi.org/10.31617/visnik.knute.2022(143)01 [in Ukrainian].

Dejneko, L. V. (2022). Promyslovist' Ukrai'ny pered vyklykamy majbutn'ogo: u poshukah vidpovidej ta rishen' [Industry of Ukraine facing the challenges of the future: in search of answers and solutions]. NAN Ukrai'ny, DU «In-t ekon. ta prognoz. NAN Ukrai'ny». http://ief.org.ua/wp-content/uploads/2022/08/PromyslovistUkrainy-pered-vyklykavy.pdf [in Ukrainian].

Doslidzhennja «Povojenne vidnovlennja ekonomiky Ukrai'ny» «Centr prykladnyh doslidzhen» [Research «Post-war recovery of the economy of Ukraine» «Centre of applied research»] cpd.com.ua (2022). https://cpd.com.ua/Research_UA_economic_reconstruction.pdf [in Ukrainian].

Fajnzylber, F. (1983). La industrialización trunca de América Latina Centro de Economía Transnacional. México: Editorial Nueva Imagen S. A, 420 р. [in English].

Muro M., Rothwell J., Andes S., Fikri K., and Kulkarni S. (2017) America’s Advanced Industries: What They Are, Where They Are, and Why They Matter. Supply chain. https://www.supplychain247.com/paper/americas_advanced_industries [in English].

Pro Zagal'noderzhavnu kompleksnu programu rozvytku vysokyh naukojemnyh tehnologij. Zakon Ukrai'ny №1676-IV vid 09.04. 2004 r. [About the National Comprehensive Program for the Development of High Science-intensive Technologies. Law of Ukraine №1676-IV dated 09.04. 2004] https://zakon.rada.gov.ua/laws/show/1676-15#Text [in Ukrainian].

Zvit Rahunkovoi' palaty Ukrai'ny za 2008 rik [Report of the Accounting Chamber of Ukraine for 2008]. http://old.ac-rada.gov.ua/control/main/uk/publish/article/1497434?cat_id=32826 [in Ukrainian].

Pro rishennja Rady nacional'noi' bezpeky i oborony Ukrai'ny vid 6 kvitnja 2006 roku «Pro stan naukovo-tehnologichnoi' sfery ta zahody shhodo zabezpechennja innovacijnogo rozvytku Ukrai'ny». Ukaz Prezydenta Ukrai'ny № 606/2006 vid 11.08.2006. [On the decision of the National Security and Defence Council of Ukraine dated April 6, 2006 «On the state of the scientific and technological sphere and measures to ensure the innovative development of Ukraine». Decree of the President of Ukraine № 606/2006 dated August 11, 2006.] https://zakon.rada.gov.ua/laws/show/606/2006#Text [in Ukrainian].

Krehivs'kyj, O. V., & Salihova, O. B. (2010). Identyfikacija vysokotehnologichnyh promyslovyh pidpryjemstv Ukrai'ny: metodologija ta praktyka. [Identification of high-tech industrial enterprises of Ukraine: methodology and practice]. Mizhnarodni standarty ta nacional'ni interesy. Statystyka Ukrai'ny – International standards and national interests. Statistics of Ukraine. (Part І), 2, 4-9. http://194.44.12.92:8080/jspui/bitstream/123456789/683/1/4-9_2%272010%2849%29_Krehivskii_Salihova.pdf [in Ukrainian].

Salihova, O. B., & Krehivs'kyj, O. V. (2021). Adresnyj pidhid u realizacii' derzhavnoi' promyslovoi' polityky Ukrai'ny v umovah zrostajuchoi' zalezhnosti vid importu. [Targeted approach in the implementation of the state industrial policy of Ukraine in conditions of growing dependence on imports]. Статистика України – Statistics of Ukraine, 2, 46-57. https://doi.org/10.31767/su.2(93)2021.02.05 [in Ukrainian].

Pro zatverdzhennja Derzhavnoi' programy rozvytku vnutrishn'ogo vyrobnyctva. Postanova KMU № 1130 vid 12 veresnja 2011 r. [On the approval of the State Program for the Development of Domestic Production. CMU Resolution № 1130 of September 12, 2011] https://zakon.rada.gov.ua/laws/show/1130-2011-%D0%BF#Text [in Ukrainian].

Salihova, O. B., & Krehivs'kyj, O. V. (2018). Novyj mehanizm derzhavnoi' pidtrymky tehnologichnyh innovacij dlja rozvytku promyslovosti [A new mechanism of state support for technological innovations for the development of industry]. Statystyka Ukrai'ny – Statistics of Ukraine, 2, 30-35. https://doi.org/10.31767/su.2(81)2018.02.04 [in Ukrainian].

Rishennja AMKU pro dopustymist' derzhavnoi' dopomogy dlja konkurencii' vid 19.10.2018 r. No 572-р. [Decision of AMCU on the admissibility of state aid for competition dated October 19, 2018 No 572-р] https://amcu.gov.ua/npas/rishennya-572-r-vid-19102018 [in Ukrainian].

UNIDO's Competitive Industrial Performance Index 2020: Country Profiles published. https://www.unido.org/news/unidos-competitive-industrial-performance-index-2020-country-profiles-published [in English].

World Development Indicators. https://databank.worldbank.org/source/world-development-indicators [in English].

Salihova, O. B. (2015). Renesans derzhavnoi' intervencii' u promyslovyj rozvytok: ostanni svitovi tendencii' ta uroky dlja Ukrai'ny [The renaissance of state intervention in industrial development: recent world trends and lessons for Ukraine]. Ekonomika Ukrai'ny – Ukraine economy, 9, 19-38 [in Ukrainian].

Science technology and innovation capability gaps policy environment and evolving policy tools for sustainable development. 2014. https://unctad.org/system/files/official-document/ciimem4d5_en.pdf [in English].

Cohen Wesley, M., Levinthal Daniel, A. (1990). Absorptive Capacity: A New Perspective on Learning and Innovation Administrative Science Quarterly, (Vol. 35), Special Issue: Technology, Organizations, and Innovation. (pp. 128-152) [in English].

National Network for Manufacturing Innovation. https://www.manufacturing.gov/glossary/national-network-manufacturing-innovation [in English].

Lall, S. & Narula, R. (2004) Foreign direct investment and its role in economic development: do we need a new agenda? The European Journal of Development Research, 16 (3), 447-464 [in English].

Zelens'kyj ogolosyv pro start velykoi' informkampanii' dlja zaluchennja investycij v Ukrai'nu [Zelenskyi announced the launch of a large information campaign to attract investments to Ukraine] ukrinform.ua. 2022. https://www.ukrinform.ua/rubric-economy/3565951-zelenskij-ogolosiv-pro-start-velikoi-informkampanii-dla-zalucenna-investicij-v-ukrainu.html [in Ukrainian].

Dejaki pytannja nadannja grantiv dlja pererobnyh pidpryjemstv. Postanova KMU № 739 vid 24.07.2022 r. [Some issues of giving grants for processing enterprises. CMU Resolution № 739 dated 24.07.2022] https://zakon.rada.gov.ua/laws/show/739-2022-%D0%BF#Text [in Ukrainian].

Karpljuk, D. (2022). Navit' «Mivina» prypynyla vyrobnyctvo. Vlada ocinyla ekonomichnu sytuaciju na Harkivshhyni [Even «Mivina» stopped production. The authorities assessed the economic situation in the Kharkiv region] glavcom.ua. https://glavcom.ua/country/politics/navit-mivina-pripinila-virobnitstvo-vlada-otsinila-ekonomichnu-situatsiju-na-kharkivshchini-877807.html. [in Ukrainian].

Pro derzhavnu pidtrymku investycijnyh proektiv zi znachnymy investycijamy. Zakon Ukrai'ny № 1116-IX vid 17.12.2020 r. [About state support of investment projects with significant investments. Law of Ukraine № 1116-IX dated December 17, 2020] https://zakon.rada.gov.ua/laws/show/1116-20#Text [in Ukrainian].

Abo Bolgarija, abo Italija. Ahmetov obyraje, de pobuduvaty novyj metkombinat. [Either Bulgaria or Italy. Akhmetov chooses where to build a new metal plant.] biz.nv.ua. 2022. https://biz.nv.ua/ukr/markets/de-ahmetov-zbuduye-noviy-metkombinat-u-bolgariji-chi-italiji-ostanni-novini-50252208.html [in Ukrainian].

Forbes UA: Півроку війни – Метінвест між втратами та планами на майбутнє [Half a year of war – Metinvest between losses and plans for the future.] metinvest.media. 2022. https://metinvest.media/ua/page/forbes-ua-pv-roku-vyni--metnvest-mzh-vtratami-ta-planami-na-maybutn [in English].

Making Global Trade Work for People. Earthscan Publications. 2003 341 р. [in English].

Sustainable Development Through FDI Induced Innovation and Technology Transfer. Dubai Government Achievements Exhibition. 30 March – 1 April 2015. https://www.ema-germany.org/media/veranstaltungen/messen/2015/AIM/AIM2015_Brochure_EN.pdf [in English].

Sidenko, V. R. (2014). Novi global'ni vyklyky ta i'h vplyv na formuvannja suspil'nyh cinnostej [New global challenges and their impact on the formation of social values]. Ukrai'ns'kyj socium – Ukrainian society, 1, 7-21. https://doi.org/10.15407/socium2014.01.007 [in Ukrainian].

Ukrai'ns'kyj zavod iz vyrobnyctva «Bajraktariv» vypuskatyme novi nadsuchasni modeli BPLA. [The Ukrainian factory for the production of «Bayraktars» will produce new ultra-modern models of UСAVs] 5.ua. 2022. https://www.5.ua/ukrayina/ukrainskyi-zavod-iz-vyrobnytstva-bairaktariv-vypuskatyme-novi-nadsuchasni-modeli-bpla-284811.html [in Ukrainian].

Goncharenko, D. O. (2021). Teoretychni pidhody ta metodologichni zasady rozvytku farmacevtyky Ukrai'ny v umovah jevropejs'koi' integracii'. [Theoretical approaches and methodological foundations of the development of pharmaceuticals of Ukraine in the conditions of European integration]. Biznes Inform – Business Inform, 5, 194-201. https://doi.org/10.32983/2222-4459-2021-5-194-201 [in Ukrainian].

Salihova, O. B., & Kurchenko, O. O. (2020). Konceptual'ni zasady Strategii' rozbudovy tehnologoorijentovanyh startapiv v interesah innovacijnogo rozvytku ekonomiky Ukrai'ny [Conceptual principles of the Strategy for the development of technology-oriented start-ups in the interests of innovative development of the economy of Ukraine]. Biznes Inform – Business Inform, 9, 65-75. https://doi.org/10.32983/2222-4459-2020-9-65-75

Baumol, W. J. (2002). Entrepreneurship, Innovation and Growth: The David-Goliath Symbiosis. Journal of Entrepreneurial Finance and Business Ventures, (Vol. 7. Issue 2), (pp. 1-10) [in English].

The growth report: strategies for sustained growth and inclusive development. The Commission on Growth and Development. Washington, DC: World Bank. 198 р. [in English].

U Minekonomiky hochut' zbil'shyty riven' VVP na dushu naselennja do $12 tysjach [The Ministry of Economy wants to increase the level of GDP per capita to $12,000] ukrinform.ua. 2022. https://www.ukrinform.ua/rubric-economy/3568917-u-minekonomiki-hocut-zbilsiti-riven-vvp-na-dusu-naselenna-do-12-tisac.html [in Ukrainian].

Published

2022-12-22

How to Cite

KREKHIVSKYI О., & SALIKHOVA О. (2022). Post-war industrial modernization: internal and external resources. oreign rade: onomics, inance, aw, 125(6), 83–104. https://doi.org/10.31617/3.2022(125)06

Issue

Section

ECONOMIC SPACE