Perspectives of participation of Ukrainian border regions’ entrepreneurship entities in the global value chains

Abstract

The article focuses on the need to reorient the economy of Ukraine to the production of high-quality products that are characterized by innovation and science-intensiveness in order to gain greater benefits from integration into global value chains. The directions of intensification of processes of entrepreneurial activity internationalization in the border regions of Ukraine are offered, in particular: advisory support for the entry of domestic enterprises into foreign markets; transition from production based on toll-free raw materials to full cycle production; design and development of brands; stimulation of attracting foreign investments into the development of domestic promising productions; creation of a favorable climate for the development of entrepreneurship, trade and the opening of branches of transnational corporations. The existing institutions in Ukraine, both state and public, are analyzed, the purpose of which is to support enterprises in the issues of entering foreign markets. The enterprises of the border regions of Ukraine, integrated into international production networks are investigated. The conclusion is made regarding the active participation of enterprises of the border regions in the global chains in the field of mechanical engineering, but their activity is reduced to only one or two parts of the production process associated with the production of goods. A large percentage of enterprises cooperate in terms of exports of manufactured products, as well as import of the necessary raw materials and materials for production with the neighboring countries, in particular Poland, Slovakia, Romania, Belarus, etc. The emphasis is on the need for design, which will allow them to search for new product concepts and innovative solutions and will create brands for entering foreign markets. Comparison of Ukrainian and world practice on the main factors contributing to trade in OECD research is carried out. Special attention is paid to clusters as connecting elements of small and medium-sized enterprises with the network for cooperation with the international market through horizontal communications.