human capital in the Ukrainian economy. Some of these researchers had to migrate to
western Europe and the United States to continue their research work, but they still
constitute an untapped knowledge potential if the right incentives were to be in place.
The focus of Ukrainian universities is on teaching, and not on conducting R&D.
In 2015, 664 universities, colleges, and technical schools were active in Ukraine. Per
the latest ERAWATCH report on Ukraine (2011), only half of the slightly more than
350 universities performed any kind of R&D in 20117. Around 25 percent of the
universities were private universities. The total expenditure on R&D in higher
education was less than 7 percent of GERD in 2011. Two-thirds of persons with
degrees of candidates of sciences and doctors of sciences are working in the higher
education sector. Per the national statistics, they produce almost 78 percent of research
papers, but NASU has more publications in internationally recognized journals, which
also receive most of the funding. The relatively low absolute financial allocation might
not be sufficient to maintain the comprehensive system of education in a country as big
as Ukraine.
In addition, university enrolment in Ukraine remains high, with 80 percent of 19-
to 25-year-old Ukrainians enrolled in universities, making it a member of the group of
five European countries that collectively represent 54 percent of the total tertiary
student population in the European higher education area (EHEA). However, at 1.52
percent, only a fraction of students enrolled at advanced research qualification
programs in Ukraine as against 2.7 percent in the EHEA, indicating a low interest of
the population in pursuing scientific careers.
The Ministry of Economic Development and Trade (MEDT) and the Ministry of
Education and Science (MESU) have launched separate innovation strategies. The
MESU launched the Law of Ukraine on Scientific and Technical Activities focusing
on the R&D sector and establishing the National Council of Ukraine on Science and
Technology Development chaired by the Prime Minister (see the following section).
The MEDT launched the High-Tech Sector Strategy focusing on the digital sector
primarily. In addition, the Law on State Regulation of Technology Transfer envisages
the development of a national network of technology transfer platforms. Thus, Ukraine
has created a diversified innovation support infrastructure but its effectiveness remains
quite low due to funding problems and lack of support.
CONCLUSION
Thus, the article reveals the main factors of negative influence on the industrial
enterprises' innovation activity: high share of financing at own expense; insignificant
or no participation of domestic investors at all; low activity of the state and directly
regions in financing innovation activity of industrial enterprises. But last positive
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