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Innovation policy is one of the key components necessary to improve the competitiveness of the Ukrainian economy, especially amid our country's integration in the European and global economic space. However, members of the Anti-Crisis Council of Non-Governmental Organizations of Ukraine and the Ukrainian League of Industrialists and Entrepreneurs (ULIE) claim that the level of innovation policy in Ukraine is extremely low.
"This can be explained by the lack of funding for scientific research (applied research and development) as well as the lack of incentives for innovation activities. For example, in 2014 scientific, research and development activities in Ukraine were estimated at 0.7% of GDP (0.11 percentage points lower than in 2013). Meanwhile, funding for scientific research accounted for 0.49% of GDP. For comparison, funding of scientific research in the EU was 2.02% of GDP in 2011 (the EU's goal is to increase its share to 3% of GDP by 2020)," ULIE President Anatoliy Kinakh said while commenting on the updated Anti-Crisis Program of Joint Actions of the Government and Businesses which was approved at an extended meeting of the Anti-Crisis Council of Non-Governmental Organizations and the ULIE Management Board in Kirovohrad.
The current unfavorable macroeconomic situation and the government's actions aimed at the withdrawal of operating assets and the increasing tax burden are the reasons for a decrease in enterprises' innovation activities. As of 2014, only 16.1% enterprises implemented innovation projects and 12.1% industrial enterprises introduced innovations in the production process.
According to the Anti-Crisis Program of Joint Actions of the Government and Businesses, the national innovation strategy should clearly outline its priorities.
"Ukraine has significant best practices and a huge potential in the spheres of space exploration, energy and industrial development, including instrument engineering and automatics, healthcare, biotechnologies, IT and software development. That's where innovations should be introduced," Kinakh said.
On March 20, 2015, Ukrainian scientists got the chance to join the Horizon 2020 Program after the signing of an agreement with the EU. The program opens up opportunities which could increase the competitiveness of production and the development of new spheres of economy, and the search for solutions to the most acute social challenges in the healthcare, demography, ecology, agriculture, and energy sectors. Ukraine is an associate member of the program, which allows it to use funds (the program's budget is estimated at around EUR 80 billion), develop its own projects, form scientific consortiums, and receive funding for specific projects. In addition, the Anti-Crisis Program states that the government, along with the parliament, should ensure greater financial support and encourage research and development and innovation activities. They should use the mechanisms which have been successfully operating in Europe – create national or state programs and funds for the research and development sphere, introduce tax incentives (specific depreciation expenses, creation of non-tax profit reserves, investment loads, etc.), provide tax credits, tax holidays, and government guarantees, etc.
Members of the Anti-Crisis Council of Non-Governmental Organizations sent their proposals to the country's leadership.