Ukraine – Innovation and entrepreneurship ecosystem diagnostic (English)

World Bank

This report assesses the environment – or "ecosystem" -- that shapes innovation by firms in Ukraine. It examines the ecosystems for three categories of companies: existing Ukrainian companies, new start-ups, and international companies investing in Ukraine. Based on a review of prior literature and approximately 50 interviews with representatives from industry, academia, and government, it systematically examines how industry and market structure, government policies and regulations, human capital, research and knowledge transfer, infrastructure and support programs, and finance all affect innovation in Ukraine. The report notes that Ukraine has improved its business environment and has significant strengths in well-educated workforce. A relatively large and growing market, abundant resources, and low costs at current exchange rates all favor foreign investments that will support innovation. But Ukraine also faces many challenges. Industrial R&D is low and declining (due to industry's concentration in low R&D sectors) and there is a lack of competition and market demand to drive innovation. Poor governance, including enduring corruption, weak rule of law, and obsolete regulatory environment, and poor industry-government collaboration all hurt innovation. Ukraine's universities and research institutes were structured around the former Soviet economy and need reform. The report lends supports to reform efforts in these areas being undertaken by other organizations. In addition, recognizing previous challenges in implementing ambitions innovation programs, the report suggests some modest-scale and more implementable interventions to improve Ukraine's I&E ecosystem. These include establishing an innovation agency to develop, advocate, and coordinate innovation policies, programs, and reforms.

Cheney, David Warren; Zolotarev, Andrey P.; Wyne, Jamil Uzair; Aridi, Anwar. 2017. Ukraine - Innovation and entrepreneurship ecosystem diagnostic (English). Washington, D.C. : World Bank Group.