DEVELOPMENT OF SCIENCE, TECNOLOGY, AND INNOVATION IN UKRAINE Oleg Khymenko

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Ministry of Education and Science of Ukraine DEVELOPMENT OF SCIENCE, TECNOLOGY, AND INNOVATION IN UKRAINE Oleg Khymenko Deputy Director of Department Head of Division Department of Scientific and Technical Development Presentation for Training in Innovation in the Eastern Partnership within the framework of the project Science, Technology, and Innovation Cooperation Network for Eastern Partnership Countries (IncoNet EaP) Minsk, BELARUS, 26 th 28 th of May, 2015 1

Course of the Ukraine economy development through innovation Partnership and Cooperation Agreement with European Community signing - June 14, 1994 entry into force - March 1, 1998 (declared) Strategy of Ukraine's integration into the European Union Decree of the President of Ukraine from June 11, 1998 615 The choice of such a course meant that the main source of economic growth was new (scientific) knowledge and its dissemination for commercial use in the production Cooperation Agreement with European Community signing March 21, 2014 (political part) June 27, 2014 (economic part) Ratification in progress (19 countries from 28 done!) 2

Key features of science, technology, and innovation development in Ukraine Background decline of R&D expenditures from 3% to 0.77% of GDP in 1990-2013 low level of demand on R&D results from the side of the economy outflow of leading specialists to other sectors and emigration decline of R&D personnel by approximately 3 times during the same period worsening the situation with research equipment aging of research personnel Priority directions of the science and technology sector in Ukraine (till 2020) basic research on contemporary challenging topics in the science and technology sector information and communication technologies energy and energy efficiency rational environmental management life sciences, new technologies on prevention and treatment of the most common diseases new substances and materials 3

Competitiveness of the national economy as indicator of development Today the growth of GDP of developed countries by 75-80% is determined by innovations Population, 2013 5,4 mln. 5,5 mln. 45,4 mln. Singapore Finland Ukraine GDP per capita (US$), 2013* 54 800 47 100 3 900 GDP per capita in Singapore or the Republic of Finland is 12 times more the GDP per capita in Ukraine The population of Ukraine is 8 times more than in these countries Rating of competitive economy of the World Economic Forum*: Ukraine: 2014-2015 - 76 place, 2013-2014 - 84 place Finland: 2014-2015 - 4 place, 2013-2014 - 3 place Singapore: 2014-2015 - 2 place, 2013-2014 - 2 place *) World Economic Forum. The Global Competitiveness Report 2014 2015. http://www3.weforum.org/docs/wef_globalcompetitivenessreport_2014-15.pdf 4

Challenges of science, technology and innovation spheres of Ukraine membership in the World Trade Organization (since May 16, 2008) high-tech industry is the basis for economic and technological dominance necessary funds are provided mainly from extra-budgetary sources saturation of markets and global supply transnational and regional integration development strategies formation technological integration as global economic phenomenon military threat from neighboring country 5

Regulatory framework of science, technology, and innovation spheres since 1991 Laws of Ukraine On scientific and technical activity, On scientific and technical information, On scientific and technical expertise, On the priority directions of science and technology, On National Security of Ukraine, On Scientific Parks, On Scientific park Kyiv Polytechnic, On special regime for innovation activity in technological parks, On innovation, On innovation activity priorities in Ukraine approved by Government s Decrees Concept of the national innovation system development Priority R&D thematic areas for the period till 2015 Medium-term priorities of innovation activity of national and sectorial levels till 2016 Concept of reforming the system of funding and management of scientific and technical activities and action plan until 2017 to implement the Concept Order of formation of state order for training, research, academic teaching and working staff, training and retraining Order of formation and placement of state orders for the supply of goods for state needs and monitor their implementation approved Ministry acts methods, practices, rules, forms, etc. 6

National Innovation System a tool of Ukraine competitiveness National Innovation System (NIS) - a set of legislative, structural and functional components (institutions) which are involved in the creation and application of scientific knowledge and technologies and determines the legal, economic, organizational and social conditions for the innovation process Purpose of NIS - improve the competitiveness of national economy Result of NIS development - improving human welfare and ensuring sustainable economic growth adopted by Government s act, June 17, 2009 NIS subsystems: government regulation education knowledge generation innovation infrastructure production Main lines of NIS subsystems development till 2025: create a competitive domestic R&D sector and ensure its expanded reproduction development of innovation infrastructure create an effective system of state support to modernize the economy through technological innovation improvement of the innovation culture society 7

The result of innovation activity Innovative activity Goal of Innovation Activities is Competitiveness Goods Production Quality Competitiveness international standards certification basket Goods Price value added IPR overheads Main bodies 1 Enterprise Competitiveness goods Innovation management 2 - State Legislation care Infrastructure development Training 3 - Society National-spiritual level development General cultural level, in particular, the culture of production Innovation-friendly environment 8

Evolution of Government s Bodies Regulation on Science & Technology & Innovation & Intellectual Property & Investments & Informatization & Youth & Sport Spheres in Ukraine in 2010 2014 State Agency for Investments and Innovations December 2005 - April 2010 Ukrainian Center for Foreign Investment Promotion Ministry of Education and Science (State Department of Intellectual Property) Science & Technology Innovations State Committee for Science, Technology and Innovation Development April 2010 - July 2010 State Committee for Informatization March 2008 - July 2010 Investments Science & Technology & Innovations Informatization Ministry of Economics State Agency for Investments and Development May 2010 - November 2010 State Committee for Science, Innovation and Informatization July 2010 - December 2010 State Agency for National Projects Management June 2010 - November 2010 Ministry of Education and Science, Youth and Sport Coordination State Youth and Sport Service State Intellectual Property Service Ministry of Economic Development and Trade Coordination from April 2010 from July 2010 from December 2010 Ministry of Youth and Sport from February 2013 State Agency for Science, Innovation and Informatization State Agency for Investments and National Projects Management Ministry of Education and Science from October 2013 Coordination State Inspectorate of Educational Institutions Ministry of Economic Development and Trade Coordination State Intellectual Property Service from October 2014 9

Innovation infrastructure in Ukraine Innovation infrastructure - a set of enterprises, organizations, institutions, associations of any property form that provide services to support innovation activities (financial, consulting, marketing, information and communication, legal, educational, etc.) Law of Ukraine On innovation Innovation structure* - a legal entity of any legal form established pursuant to legislation (type A), or group of entities acting on the basis of an agreement on joint activity without creating a legal entity and no union contributions to participants (hereinafter - the contract on joint activity) (type B), defined sector of activity and type of operation, focused on the creation and implementation of science-intensive competitive products Research and technology parks 16 Innovation business incubators 28 Innovation centers 25 Centers of commercialization of intellectual property 37 Centers of science, innovation and informatization 10 Enterprises of implementation of research findings 27 Study, research and production centers 35 Investment innovative venture capital fund 1 Centers of innovation and technology transfer 28 *) The Government's act from May 22, 1996 #549 "About approval of the establishment and operation of technology parks and innovation structures of other types" 10

University as a key element of innovation activity increasing TEMPUS Project "MERCURY" Towards Research and Entrepreneurial University models in the Russian, Ukrainian and Moldavian Higher Education (# 144855-TEMPUS-2008-DE-JPHES) Project: terms January 2009 January 2012; consortium 14 members; one of the project s results the book Book s structure: synopsis Entry Part 1. Let's get acquainted Part 2. What do we lack? Part 3. Find the perfect model Part 4. Stars of novation Part 5. Thorns of innovation Part 6. The burden of ovations Part 7. Towards Tomorrow Epilogue 11

Increasing innovation culture society Creating a positive attitude to innovation in society: promoting innovation education creative thinking education of Civil Servants improving the quality of training on innovation management Qualification availability of training, professional knowledge, skills and expertise that enable the person properly to carry out certain actions; level of fitness, skill, degree of readiness to perform work on a given specialty or position that the discharge is determined, class or other attestation category Competence skills, knowledge, values, attitudes and personal qualities that are manifested in the behavior of individuals. Competence skill demonstration Leadership the concept of management, including change management, for which no matter the level positions, and the degree of influence of the person and based on the ideals of creativity, strategic thinking, trust in people, etc. Leadership to do the right thing, instead, management doing things right 12

Thank you for your attention! Oleg Khymenko Deputy Director of the Department Head of the Division of Scientific and Technical Infrastructure Department of Scientific and Technical Development Ministry of Education and Science of Ukraine 10, Peremogy Aven., Kyiv-135, 01135, Ukraine Tel.: +380 44 287 82 04 mob.: +380 67 443 34 32 e-mail: oakh@ukr.net o_khymenko@mon.gov.ua http://www.mon.gov.ua 13