The innovative potential of the European Union: challenges of development and their implications for the policy of activating innovation processes in Ukraine

Анотація

Introduction. Overcoming technological backwardness and maintaining the resilience of Ukraine’s economy under wartime conditions are impossible without the modernisation and expansion of production, which, in turn, require the widespread implementation of innovations and the intensification of innovation processes. At the same time, the domestic research and development sector is currently in an extremely difficult state. Ukraine expects that European integration will, at least partially, contribute to its improvement. However, such expectations may prove overly optimistic, as the European Union itself is experiencing significant challenges in this area under the pressure of global competition. Ukraine must take these factors into account when shaping its own innovation policy. Aim. Based on an analysis of the problems and shortcomings in the formation and functioning of the EU’s innovation potential, the study aims to identify the key directions for its development and to determine the resulting opportunities for activating innovation processes in Ukraine in the context of European integration. Results. The study reveals negative trends in the EU’s research and development sector that contribute to its technological lag behind the United States and China. The underlying causes of these trends are identified, and potential directions for their mitigation are outlined. It is emphasised that although Ukraine faces similar challenges in the field of research and development, these problems are significantly deeper and more critical in nature. It is demonstrated that overcoming them is impossible without accelerated development and modernisation of industrial production, which would generate demand for research and development and serve as a prerequisite for increasing its financing. In light of the challenges faced by the EU, the necessity of identifying domestic sources for expanding research funding in Ukraine is substantiated. Particular attention is given to the potential of existing state support programmes for the real sector, as well as to opportunities for integrating research and educational institutions with the production sector through industrial parks and sectoral technological clusters.

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