DIVERSIFICATION OF FINANCING SOURCES OF HEIS IN UKRAINE

N І Kholiavko

doi:10.18371/fcaptp.v3i30.179829

Abstract

In the conditions of information economy, is growing the role of sectors capable of generating new knowledge, thus contributing to the country's economic development. The intellectual and innovative potential of the higher education system can transform the higher education institutions (hereinafter HEI) into one of the key drivers for activating the processes of the information economy formation.In modern social-economic conditions, is becoming urgent to modernize the higher education system in response to the actual demands of the external economic environment; the modernization processes require adequate funding. Taking into account the potential and the tendency of HEIs transformation into economic entities, it is important to create the preconditions for diversification of their funding sources at the state level.The financial aspects of the HEIs functioning, the aspects of diversification of funding sources of higher education system are being researching by the number of scientists: Kaleniuk I., Bogolib T., Kuklin O., Tsymbal L., Buchkovskaya Ya., Radionova I., Komarova I., Volikov V., Devol R., Lee J., Ratnatunga M., etc.Problems of diversification of financial sources require further research, in particular — the prospects of commercialization of universities’ research results.The research objective: study of diversification of financing sources of the Ukrainian higher education institutions.The article analyzes tendencies of financing of the Ukrainian higher education system. The analysis demonstrated a gradual reduction of public funding for higher education. Exogenous and endogenous problems of commercialization of universities research results are specified in the article.The author comes to the conclusion about the necessity of diversification of funding sources of the Ukrainian higher educational institutions. The author identifies the commercialization of research results of higher educational institutions as one of priority funding sources.

Highlights

The current stage of the world leading countries development is characterized by the transition to the information economy — to a new type of economy characterized with the growing role of knowledge, innovations and technologies in the processes of production, exchange, distribution and consumption, as well as in the development of the main sectors of the national economy
In the conditions of the information economy the special role is played by the sectors capable to generate new knowledge and ideas with the possibility of their further transfer to the business enterprise sector
The financing tendencies of the higher education system of Ukraine are analyzed in the article; the economical and statistical analysis has showed a gradual reduction of the public funding for the higher education

Summary

Introduction

The current stage of the world leading countries development is characterized by the transition to the information economy — to a new type of economy characterized with the growing role of knowledge, innovations and technologies in the processes of production, exchange, distribution and consumption, as well as in the development of the main sectors of the national economy. The investments in education are generally regarded as an investment in the development of the human capital of the country Taking into account both the high potential of the higher education sector and the gradual transformation of the universities into full-fledged economic actors it is advisable to create the necessary prerequisites for diversifying the financing sources of higher education institutions (hereinafter HEI) at the national level. In our opinion the analyzed tendencies of the higher education financing by the public sector are caused by the growing political instability; the aggravation of the geopolitical situation; the hostilities deployment in the East of the state; the socio-economic, demographic problems of the country and migration processes (outflow of the highly skilled specialists abroad).

Diversification Direction of Financing Sources of HEIs

Legal entities

The current legislation

Endogenous problems

Findings

Conclusions