Current state and prospects of innovative industry development of Ukraine

Abstract

Purpose. The purpose of the study is to analyse the development trends of Ukrainian industry and identify ways to solve existing problems based on the intensification of innovation processes. Methodology of research. During the research methods generally accepted in economic science were applied, in particular: statistical and graphic – for definition of Ukrainian industry development tendencies; comparative analysis – to compare the Ukrainian industry and the world; system generalization – in substantiating the directions of industry innovative development intensification. Findings. The current trends in the development of industrial production in Ukraine, which are characterized by falling production volumes and negative changes in the structure of the industry, are revealed. The reduction of industrial production is revealed, which occurs mainly due to the curtailment of the processing industry enterprises activity. Negative changes in the structure of the industry are revealed, among which the increase in the share of low-tech productions with a significant decrease in medium-tech and moderate –high-tech ones are highlighted. Based on the correlation between industrial production indicators and GDP dynamics, it is proved that industry forms the foundation of the country`s social and economic development. It was found that the Ukrainian economy lags far behind the development of the world`s leading countries in terms of its material, resource, and energy intensity. The article proves that the issue of industrial development based on the intensification of innovation processes in Ukraine needs radical changes in reforming the management mechanisms of innovation processes and relations between science, society, business, and government to intensify investment activities support the technological development of industry, the introduction of environmentally friendly production. Originality. The analysis of the state of Ukraine`s industry and substantiation of the need for its innovative development was further developed, in the context of which measures were proposed to intensify innovation processes, which, in addition to existing ones, provide for the formation of a managing mechanism for innovative industrial development; coordination of industrial sector development policy with the goals of sustainable and inclusive development; introduction of environmentally friendly industrial production; expansion of cross-border economic and environmental cooperation; development of the strategy of development of the industry of Ukraine taking into account the European experience. Practical value. The results of the study are the basis for solving practical problems of improving the situation and the transition to innovative industrial development in Ukraine. Key words: industry of Ukraine, processing industry, structure of industrial production, industry innovative development.