INNOVATION POTENTIAL AS A FACTOR OF GROWTH AND COMPETITIVENESS OF THE NATIONAL ECONOMY: ANALYSIS, EVALUATION AND DEVELOPMENT PROSPECTS

Abstract

The article examines the innovative potential as the basis for the growth of the national economy and increase of its competitiveness. A thorough analysis of Ukraine's performance in international innovation rankings reveals that there is a conspicuous absence of a proactive policy framework to support innovation, both from the state and business sectors. Utilizing economic and mathematical modeling and forecasting techniques, it is demonstrated that, in the pre-war era, Ukraine's economy did not fully leverage its innovation potential. In the 2022-2023 period, there was a substantial decline in innovation potential, and science effectively lost its capacity to serve as an economic catalyst. In the contemporary context, the primary challenges impeding the advancement of innovation potential encompass constrained access to public and private investments by enterprises, inadequate integration of science, education, business and the state, insufficient implementation of scientific research into the real economy, underdeveloped innovation ecosystem, and other factors. This paper sets out the general approaches to the formation of a strategy for stimulating innovations in the context of the military restoration of Ukraine. It is posited that the attainment of economic growth and enhanced competitiveness of the Ukrainian economy is contingent upon the inclusion of innovations and their active implementation, effective attraction and utilization of investment resources, and the development of high-tech resources. The analysis draws upon global experience to conclude that the effective integration of innovations into production, organizational and managerial processes is contingent upon the creation of a favorable business climate, the establishment of a holistic innovation ecosystem, the development of infrastructure, active state participation in the formation of the institutional environment and financing of R&D, and the promotion of digital transformations as the basis for modern technological changes. The concept of industrial parks is presented as a tool for innovative development for the effective restoration of the country's economy. It is also posited that innovations should become a key factor in the post-war recovery of Ukraine.