Does Innovation Is Driving Force? Analysis and Control for Eu, Poland and Ukraine

Abstract

The aim of the article is to present condition of innovativeness for Poland as Moderate innovator and Ukraine as modest inovator. The essence and role of innovation was observed for contemporary world economy. The data assessment has been provided in the over last 7 years, it means in period from the year 2010 to 2017. Innovation of the Polish and Ukrainian economies was analyzed on the basis of 27 particular indicators. The method of comparative analysis was used to pursue the adopted aim. Performance for Ukraine and Poland was analyzed and controlled relative to European Union 2017 and 2010. The latest and the most reliable assessment tool, i.e. Innovation Scoreboard 2018, a regular document prepared upon the request of Directorate-General for Enterprise and Industry, European Commission was used to conduct the analysis. The analysis of the dynamics was carried out and the main trends were revealed for innovation in composite indicators. Despite the fact the EU is the obvious leader, Poland which in fact is the part of it, in certain indexes approached EU's performance. In those indexes as innovation-friendly environment, employment impacts and firm investments Poland being a part of the EU became almost equal to it. Ukraine is the best in Human resource index among all of them but has the worst intellectual assets index. The most significant rise was in the EU in innovation-friendly environment index. Assessment and recommendations for raising innovativeness were formed for the analyzed economies. As a result, reasons of significant difference between Ukraine and Poland were identified. Ukraine is in the 'Modest Innovators' group with the worst indicator. In contrast to Ukraine, Poland is one of the 'Moderate innovators' with almost twice as big as Ukrainian index. The complex approach to use innovation as driving force for economies must include: increase of the level and efficiency of education at schools and universities; research and development of modern technologies; increase of conditions of running economic activity, adequate building of capital for innovation as well as regular increase of expenditures on R&D move to the strategy of creation of own knowledge, creation of competitive advantage based on the latest innovative achievements thus launching original, own solutions and fresh knowledge on the global market.

Instrumental analysis of the impact of economic factors on the level of a country’s economic innovativeness

“…In the context of the problem raised, it is also worth noting the research by W. Gajda, A. Kuznetsov and S. Kuznetsova [4], in which the state of innovative development of Poland and Ukraine is compared; the countries are respectively classified as a moderate innovator and a modest innovator. The authors analyzed 27 indicators of the countries' economic and innovative development in comparison with the achievements of the European Union using comparative analysis methods.…”

“…x 4 share of industry in the economy structure this indicator is included to investigate how the level of industrial production affects innovation, and whether industry is one of those areas where innovation is observed most often.…”

The relationship assessment between human resources and innovation performance in EU countries

“…On the basis of the results of this assessment, several authors evaluate the innovation performance of countries or compare the innovation performance of several countries over a certain period. Gajda et al (2018) assessed the innovation performance of Ukraine and Poland compared to the European Union in 2010-2017. Janošková & Kráľ (2019) assessed the innovation performance of the V4 countries in 2010-2016 based on the indicators contained in the SII.…”