Institutional Constraints on the Development of the Knowledge Economy at the Regional Level in the Context of the Wartime Economy

Анотація

The article examines institutional constraints on the development of the knowledge economy at the regional level in the context of Ukraine’s wartime economy. Based on the institutional theory of D. North and O. Williamson, as well as the theory of regional innovation systems by B. Cooke, the types of institutional constraints are systematised by level (national, regional, micro) and type (formal, informal, organisational). A matrix of institutional constraints has been developed, which reflects the systemic, mutually reinforcing nature of the identified dysfunctions and allows identifying the «key» constraints with the greatest structural impact: weak protection of intellectual property rights, fragmentation of the national innovation system, and mistrust between actors in the innovation process. The specifics of institutional deformations caused by full-scale armed aggression have been revealed: destruction of scientific and educational infrastructure, outflow of human capital, breakdown of network links between actors of regional innovation systems, redistribution of public funding in favour of defence spending. The asymmetric nature of the regional consequences of military aggression is substantiated: frontline regions are characterised by the destruction of innovation infrastructure, while regions receiving displaced persons have received additional resources for knowledge development. The conception of «institutional resilience» of regional knowledge systems is proposed, covering three dimensions: absorptive, adaptive and transformative capacity. The need for a «recovery with trajectory change» approach instead of a simple return to the pre-war status quo is argued. Five priorities for institutional reform to restore and develop the regional knowledge economy are substantiated: reforming the protection and commercialisation of intellectual property; decentralising the management of the science and innovation system; programmes to attract the diaspora and return scientific personnel; new formats for interregional and cross-border scientific and educational cooperation; and the formation of a culture of innovation and entrepreneurship.

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