Cooperation Between Ukraine and the EU Towards Innovation-Driven Economic Development

Cooperation Between Ukraine and the EU Towards Innovation-Driven Economic Development

Lyubov Artemenko (Institute of Philosophy and Sociology of the Polish Academy of Sciences, Poland)
Copyright: © 2020 |Pages: 27
DOI: 10.4018/978-1-7998-2906-5.ch012


Innovation underpins productivity and lies at the heart of economic growth. Ukraine is far from the technological frontier. Its economy depends on energy-intensive industries, producing low value-added products, and using a relatively cheap labour force. As international cooperation is an important proxy of country's technological catch-up, this chapter aims to study ways of cooperation between Ukraine and the EU towards innovation-driven economic development. The chapter provides analysis of Ukraine's participation in EU 7th Framework programme and HORIZON2020. Special emphasis is assigned to the ability of Ukrainian participants to acquire, assimilate, transform, and exploit gained knowledge.
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Theoretical Framework

It is generally acknowledged that innovation underpins productivity and lay at the heart of economic growth. A large and growing body of literature has investigated a strong association between innovation1 and long-run economic performance (Solow (1957), Romer (1990), Krugman (1991), Grossman & Helpman (1991)), while also recognizing peculiar role of institutional arrangements in economic growth (North and Thomas (1973), Sala-i-Martin (2002), Tebaldi and Elmslie (2008)) and innovation-driven economic development (Hage and Hollingsworth (2000), Edquist (1997), Langlois and Robertson (1995)).

The concept of National innovation system (NIS) helps to study innovation development occurring within an economic system as the “result of a complex set of relationships among actors”, such as enterprises, universities and government (OECD, 1995). NIS definitions vary: for example, according to Freeman NIS is a “network of institutions in the public and private sectors whose activities and interactions initiate, import, modify and diffuse new technologies” (Freeman, 1987, p.1); and according to Lundvall, NIS can be defined as “elements and relationships which interact in the production, diffusion and use of new, and economically useful, knowledge” (Lundvall, 1992, p. 12).

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