Business Efficiency in the Technological Sectors of Ukraine

Abstract

The purpose of this study is to assess the efficiency of business entities in Ukraine, which are grouped into categories proposed by Commission Regulation (EC) No. 251/2009 of 11 March 2009. Types of economic activity are divided into five technological sectors. The authors analyzed the dynamics of the number of business entities based on their differentiation by the level of technologies used. It was concluded that there is a more active increase in the number of business entities in the non-manufacturing sphere in comparison with the manufacturing sphere, using high technologies. The authors focus on increasing the share of natural entities-entrepreneurs in the total number of business entities. This is treated as a confirmation of the improvement of the entrepreneurial environment quality for the development of small business in the technical sphere of Ukraine. This study performed two tasks: analysis of the effectiveness of labor resource use by business entities and analysis of the production efficiency of added value for these groups. Calculations carried out by the authors showed that the service sector is ahead of the sphere of material production in terms of added value efficiency in a predominantly larger number of special aggregates in terms of technology use. However, the High R&D intensity industries sector showed less efficiency of added value compared to 2013. The efficiency of labor resource use was analyzed according to such parameters as labor productivity and added value per employed person. The sphere of material production has shown the highest level of labor productivity in such Special aggregates by Regulation (EC) as Low R&D intensity industries sector (LOT). The service sector had the highest labor productivity in such a segment as the use of computer equipment. The increase in added value per employed person was the highest in the Medium-low R&D intensity industries. It was concluded that there are no sustainable advantages of the High R&D intensity industries sector in Ukraine, and therefore the need for comprehensive systemic support for this sector from both the state and private investors was emphasized.