KNOWLEDGE ECONOMY IN UKRAINE: CURRENT CONDITION AND PROBLEMS OF ITS DEVELOPMENT

Abstract

In modern global economy postindustrial industries have become main drivers of development and achieving an international competitiveness. As a result, scientists have developed a concept of a knowledge economy based on the accumulation, analysis and use of knowledge and the development of human capital to ensure sustainable economic development as a consequence. Ukraine possesses highly skilled human capital and considerable innovation potential, which is confirmed by the high efficiency of Ukrainian innovations in comparison to the resources used. These conditions create a favorable base for the development of a knowledge economy. In view of this, the purpose of this article is to evaluate its current condition in Ukraine by using a factor analysis of the Knowledge Economy Index in 2011-2019 to identify problems that impede its development and to develop appropriate recommendations. The study found that the most developed component of the knowledge economy in Ukraine is the skills to create innovation, that is, human capital. A more profound examination of the Index by the elimination method has shown that the development of the knowledge economy in Ukraine was maintained by increase in the use of information and communication technologies, namely the growth of the e-commerce sector, the development of services provided in electronic form, etc. At the same time, the main problems are the decrease in the openness of the economy, namely the decrease in the volume of foreign direct investment, the increase of political instability, the low level of use of innovations absorbed by firms and the conduct of research. In addition, an important problem for Ukraine is the brain drain of highly skilled human capital and, as a consequence, the decrease in the number of researchers in the population structure. Based on the results of the analysis, recommendations were made for macro- and macro-levels, as well as the feasibility of using high-performance work practices for human capital management. In particular, in a macro environment, it is recommended to use these methods in the educational system of Ukraine.