The influence of innovative development in the EU countries and Ukraine on the competitiveness of national economies: A comparative analysis
-
DOIhttp://dx.doi.org/10.21511/ppm.22(2).2024.01
-
Article InfoVolume 22 2024, Issue #2, pp. 1-16
- Cited by
- 375 Views
-
94 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Russian aggression adversely affected the economy of Ukraine and emphasized the need to adapt the best practices of EU countries to determine steps to restore the country’s competitiveness. This study aims to determine the influence of the innovative development of countries on their competitiveness and identify prospects for Ukraine’s post-war economic recovery. The study constructed neural networks to assess the relationships between the factors of innovative development and the competitiveness of the EU countries and Ukraine. Six main factors of innovative development of countries are identified: “innovations in business (S1),” “intellectual property (S2)”, “innovations in industry (S3),” “eco-innovations (S4),” “innovation management (S5),” and “digital innovations (S5).” Groups of factors are determined by the strength of influence (strong, moderate, or weak). For Ukraine, S1 and S6 have a strong effect (33.3%), S5 shows moderate (16.7%), S2, S3, and S4 show weak effects (50%). For EU countries, S1 and S6 have a strong influence, S2 and S3 – moderate, S5 and S4 – weak. This comparative analysis concluded that EU countries consider intellectual property, green economy, and state innovation policy as key components of their competitiveness. The results discovered a weak relationship between intellectual property protection, innovation in industry, and competitiveness of Ukraine compared to EU countries. However, digital innovations significantly and positively affect Ukraine’s competitiveness.
- Keywords
-
JEL Classification (Paper profile tab)F63, O30
-
References48
-
Tables2
-
Figures11
-
- Figure 1. Bibliometric analysis of thematic areas for the influence of countries’ innovative development on their competitiveness
- Figure 2. Conceptual framework
- Figure 3. Neural networks for assessing the impact of innovative development factors on the competitiveness of Ukraine and EU countries (median value)
- Figure 3a. Ukraine
- Figure 3b. EU countries (median value)
- Figure 4. Relationships of innovative development indicators and competitiveness of EU countries and Ukraine (by synaptic weight)
- Figure 5. R&D intensity in OECD and other economies
- Figure 6. Ukraine and EU countries in the Global Innovation Index rating in 2023
- Figure 7. Payments and revenue from intellectual property, % of total trade in 2022
- Figure 8. Ecological Stability Index of Ukraine and EU countries (max – 100%) in 2022
- Figure 9. Ukraine and EU countries in the Government Effectiveness Index in 2022
-
- Table 1. Ukraine in international rankings of digital development
- Table 2. Measures for the formation of a holistic ecosystem of innovative development in Ukraine by vectors
-
- Bielińska-Dusza, E., & Hamerska, M. (2021). Methodology for calculating the European Innovation Scoreboard – Proposition for modification. Sustainability, 13(4), Article 2199.
- Bloomberg. (2021). Bloomberg Innovation Index 2021.
- Brodny, J., Tutak, M., Grebski, W., & Bindzárc, P. (2023). Assessing the level of innovativeness of EU-27 countries and its relationship to economic, environmental, energy and social parameters. Journal of Open Innovation: Technology, Market, and Complexity, 9(2), Article 100073.
- Deineko, L., Hrebelnyk, O., Zharova, L., Tsyplitska, O., & Grebeniuk, N. (2022). Digital divide and sustainable development of Ukrainian regions. Problems and Perspectives in Management, 20(1), 353-366.
- Del-Aguila-Arcentales, S., Alvarez-Risco, A., & Yanez, J. A. (2023). Innovation and its effects on compliance with Sustainable Development Goals and competitiveness in European Union countries. Journal of Open Innovation: Technology, Market, and Complexity, 9(3), Article 100127.
- Directorate-General for Research and Innovation. (2022). European Innovation Scoreboard 2022.
- Directorate-General for Research and Innovation. (2023). European Innovation Scoreboard 2023.
- Dutta, S., & Lanvin, B. (2019). The Network Readiness Index 2019: Towards a future-based society. Washington D.C., USA: Portulans Institute.
- EGDI. (2022). Ukraine – UN E-Government Survey 2022.
- Frolov, S., Ivasenko, M., Dykha, M. V., Heyenko, M., & Datsenko, V. (2023). Analysis of the impact of central bank digital currency on stock markets: Dynamics and implications. Banks and Bank Systems, 18(4), 149-168.
- GII. (2023). Innovation in the face of uncertainty.
- Government of the Netherlands. (2023). Encouraging Innovation.
- Honcharov, Yu.V., Dykha, M.V., Voronina, V., Milka, A., & Klymenchukova, N. (2023). Forecasting the innovation of Ukraine’s economic development in a global dimension. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu, 1, 174-181.
- Huang, Y., Li, K., & Li, P. (2023). Innovation ecosystems and national talent competitiveness: A country-based comparison using fsQCA. Technological Forecasting and Social Change, 194, Article 122733.
- Iavorskyi, P., Taran, S., Shepotylo, O., & Hamaniuk, O. (2020). Ukraine’s integration into the EU’s digital single market: Potential economic benefits. Kyiv: NGO Ukrainian Centre for European Policy.
- IMD. (2020). World digital competitiveness ranking 2020.
- Information Technology & innovation Foundation (ITIF). (2019, June 13). National innovation policies: What countries do best and how they can improve.
- Kim, A. B. (2024). 2024 Index of economic freedom. The Heritage Foundation.
- Kocherov, M., Dzhyhora, O., Dykha, M., Lukianova, V., & Polozova, V. (2023). Mechanisms of Post-War Economic Recovery in Ukraine: The Role of the International Community. Economic Affairs, 68(02), 1311-1321.
- Kuzior, A., Arefiev, S., & Poberezhna, Z. (2023). Informatization of innovative technologies for ensuring macroeconomic trends in the conditions of a circular economy. Journal of Open Innovation: Technology, Market, and Complexity, 9(1), Article 100001.
- Kuzior, A., Pidorycheva, I., Liashenko, V., Shevtsova, H., & Shvets, N. (2022). Assessment of national innovation ecosystems of the EU countries and Ukraine in the interests of their sustainable development. Sustainability, 14(14), Article 8487.
- Kwilinski, A., Vyshnevskyi, O., & Dzwigol, H. (2020). Digitalization of the EU economies and people at risk of poverty or social exclusion. Journal of Risk and Financial Management, 13(7), Article 142.
- Maradana, R. P., Pradhan, R. P., Dash, S., Zaki, D. B., Gaurav, K., Jayakumar, M., & Sarangi, A. K. (2019). Innovation and economic growth in European Economic Area countries: The Granger causality approach. IIMB Management Review, 31(3), 268-282.
- Ministry of Economic Development and Trade of Ukraine. (2017). Sustainable Development Goals; National Report. Kyiv, Ukraine.
- OECD. (2022). Building back a better innovation ecosystem in Ukraine.
- OECD. (2023). OECD main science and technology indicators.
- Osieczko, K., & Stec, S. (2020). Poziom innowacyjności gospodarki Polski na tle krajów Unii Europejskiej [The level of innovation of the Polish economy compared to European Union countries]. Zarządzanie Innowacyjne w Gospodarce i Biznesie, 29(2), 79-91. (In Polish).
- Pedchenko, N. S., & Franko, L. S. (2021). Formuvannia teoretychnoho bazysu vzaiemozviazku innovatsiinoi polityky ta konkurentospromozhnosti natsionalnoi ekonomiky [Formation of the theoretical basis of the relationship between innovation policy and the competitiveness of the national economy]. Prychornomorski Ekonomichni Studii – Black Sea Economic Studies, 7, 69-75. (In Ukrainian).
- Peng, H., He, Z.C., & Zhang, X. L. (2022). The Influence of entrepreneurship and craftsmanship on enterprise innovation performance. Journal of China Soft Science, 03, 112-123.
- Polyakov, M., Khanin, I., Shevchenko, G., Bilozubenko, V., & Korneyev, M. (2023). Determining the key factors of the innovation gap between EU countries. Problems and Perspectives in Management, 21(3), 316-329.
- Ruda, M., Yaremchuk, T., & Bortnikova, M. (2021). Circular economy in Ukraine: Adaptation of European experience. Management and Entrepreneurship Ukraine: The stages of formation and problems development, 3(1), 212-222.
- Saqib, N., Usman, M., Ozturk, I., & Sharif, A. (2024). Harnessing the synergistic impacts of environmental innovations, financial development, green growth, and ecological footprint through the lens of SDGs policies for countries exhibiting high ecological footprints. Energy Policy, 184, Article 113863.
- Skliar, І., Pedchenko, N., Strilec, V., Novikova, V., & Kozmenko, Y. (2020). Assessment of the reforms and programs results of Ukraine’s economy sustainable development by means of neural networks. Problems and Perspectives in Management, 18(3), 81-92.
- State statistics service of Ukraine (2022). Statistical Yearbook of Ukraine for 2021, 444.
- Strilets, V., Frolov, S., Datsenko, V., Tymoshenko, O., & Yatsko, M. (2022). State support for the digitalization of SMEs in European countries. Problems and Perspectives in Management, 20(4), 290-305.
- Szopik-Depczyńska, K., Cheba, K., Bąk, I., Kędzierska-Szczepaniak, A., Szczepaniak, K., & Ioppolo, G. (2020). Innovation level and local development of EU regions. A new assessment approach. Land Use Policy, 99, Article 104837.
- The Cabinet of Ministers of Ukraine. (2019). Rozporiadzhennia “Pro skhvalennia Stratehii rozvytku sfery innovatsiinoi diialnosti na period do 2030 roku” [Order “On the approval of the Strategy for the development of the sphere of innovative activity for the period until 2030”]. (In Ukrainian).
- The Government of the UK. (n.d.). Innovate UK.
- The Institute of Economic Research and Policy Consulting. (2021). Municipal competitiveness index 2021.
- UNECE. (2020). Sub-Regional Policy Outlook 2020: Eastern Europe and the South Caucasus.
- UNESCO. (2021). UNESCO Science Report: The Race against Time for Smarter Development.
- Vetsikas, A., Stamboulis, Y., & Markatou, M. (2017). Innovation and economic growth: An empirical investigation of European countries. 15th Globelics International Conference.
- Wang, Q., & Wang, S. (2019). Decoupling economic growth from carbon emissions growth in the United States: The role of research and development. Journal of Cleaner Production, 234, 702-713.
- World Bank Group. (2020). Economy profile of Ukraine: Doing business 2020.
- World Bank. (2023, April 6). Russia’s Invasion of Ukraine and Cost-of-Living Crisis Dim Growth Prospects in Emerging Europe and Central Asia.
- World Bank. (n.d.). World Development Indicators.
- Yin, X., Qi, L., Ji, J., & Zhou, J. (2023). How does innovation spirit affect R&D investment and innovation performance? The moderating role of business environment. Journal of Innovation & Knowledge, 8(3), Article 100398.
- Zhao, C. M., Qu, X., & Luo, S. G. (2019). Impact of the InnoCom program on corporate innovation performance in China: Evidence from Shanghai. Technological Forecasting and Social Change, 146, 103-118.