2017年-世界发展银行全球_Ukraine_Science_Technology_and_Innovation_Public_Expenditure_Analysis_43页_1mb

SCIENCE, TECHNOLOGY, AND INNOVATION PUBLIC EXPENDITURE ANALYSIS: Ukraine Summary

Core Content

This report is part of the World Bank's Ukraine Technical Assistance on Innovation Support project, aimed at evaluating the quality and composition of public investments in science, technology, and innovation (STI) and providing recommendations to enhance their effectiveness. The analysis is conducted in the context of Ukraine's fiscal consolidation and the need to improve innovation performance.

Main Viewpoints

• Ukraine's Innovation Challenges: The country faces significant underperformance in innovation, which negatively affects economic competitiveness and firm productivity. This is reflected in low R&D commercialization, declining national patent applications, and a weak entrepreneurial environment.

• Fiscal Constraints: The government has reduced public expenditure on STI, which has led to misalignment between the current funding mechanisms and the actual needs of the innovation ecosystem. Public resources are mostly allocated through block grants, limiting the ability to target specific innovation needs effectively.

• Fragmented Governance: The National Innovation System (NIS) is fragmented, with different ministries operating in silos and lacking coordination. There is no clear, unified national STI strategy, and regional-level governance systems for STI are underdeveloped.

• Weak Institutional Support: STI institutions, particularly the National Academy of Sciences of Ukraine (NASU), dominate public funding but are not aligned with emerging economic sectors. Universities and research institutes are underperforming in R&D and innovation activities, with limited capacity to support business innovation.

• Limited Access to Finance: Innovative companies and SMEs face significant difficulties in accessing finance, due to the underdeveloped venture capital (VC) system and lack of financial intermediaries and quality business services.

Key Information

• Policy Aspirations: Ukraine has launched two strategies targeting innovation, one in the Ministry of Economic Development and Trade (MEDT) and another in the Ministry of Education and Science (MESU), but these strategies are not well-aligned.

• Data Sources: The analysis relies on the BOOST database, which captures government spending on STI. However, it lacks granular data due to the use of block funding and limited budget codes.

• Performance Indicators: The report uses metrics such as the Global Competitive Index (GCI), Global Entrepreneurship Monitor (GEM), and Total Factor Productivity (TFP) to evaluate innovation performance.

• Recommendations: The report outlines three major categories of recommendations: improving governance and policy design, shifting budget allocation to support enterprise innovation, and investing in instruments that build firm capabilities and improve the innovation environment.

Structure of the Report

1. Acknowledgments and Disclaimer

• Authored by Xavier Cirera, Jaime Frias, and Andrey Zolotarev.
• Supported by the Swedish Ukraine Financial and Enterprise Sector Recovery and Growth Trust Fund.
• Disclaimer notes that the findings do not necessarily reflect the views of the World Bank Group or its member institutions.

2. Table of Contents

• Includes sections on the analytical framework, demand for STI policies, policy framework, resource allocation, and key recommendations.

3. List of Figures and Tables

• Figures and tables provide visual and numerical data on innovation performance, STI expenditure, and policy frameworks.

4. Executive Summary

• Highlights the challenges faced by Ukraine in terms of innovation underperformance and the need for a more effective STI policy mix.
• Emphasizes the importance of aligning public expenditure with innovation priorities and improving the governance of STI funding.

5. Introduction

• Explains the macroeconomic volatility and fiscal consolidation in Ukraine.
• Outlines the objective of the report: to assess the coherence between the country's needs and the allocation of STI expenditures.

6. Analytical Framework and Approach

• The framework is designed to evaluate the effectiveness of STI policies by examining market and system failures and the alignment of public resources with policy priorities.
• The analysis includes a demand assessment, policy framework evaluation, and public expenditure review.

7. Demand for STI Policies

• Business innovation outcomes show a decline in productivity and competitiveness.
• The demand for innovation policies is driven by the need to address market failures, improve R&D commercialization, and enhance the innovation environment.

8. Policy Framework for STI Business Innovation

• Describes the current policy landscape, including priorities, institutions, and programs.
• Notes the lack of alignment between policy priorities and the needs of the private sector.

9. Resource Allocation and STI Expenditures

• Public expenditure on STI is dominated by block funding to national academies.
• There is a lack of competitive grants and a misalignment between funding and innovation needs.

10. Key Recommendations

• Governance: Strengthen governance, planning, and learning mechanisms to improve policy efficiency.
• Budget Allocation: Shift budget allocation to support enterprise innovation and reduce bias toward state-owned enterprises.
• Instruments: Invest in instruments that build firm capabilities, promote industry-specific collaboration, and improve the enabling environment for innovation.

Conclusion

Ukraine's STI policies and expenditures are not effectively aligned with the needs of the innovation ecosystem. A more coherent and pragmatic approach to innovation governance and policy design is essential to address these challenges and enhance the country's competitiveness. The report recommends a unified national STI strategy, improved governance mechanisms, and a shift toward more targeted and competitive funding models.