Small Innovative Enterprises in Ukraine and Europe: Tendencies, Problems, and Incentive Tools for Their Development

The article aims to investigate the current situation of small innovative enterprises in Ukraine and compare changes in time and among countries. The analysis shows the tendencies, weaknesses, threats, which companies and national governments face with. It also could help to find new ways and incent...

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1. Verfasser: Tulku, Y.I.
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Zitieren:Small Innovative Enterprises in Ukraine and Europe: Tendencies, Problems, and Incentive Tools for Their Development / Y.I. Tulku // Економічний вісник Донбасу. — 2014. — № 4(38). — С. 73-78. — Бібліогр.: 9 назв. — англ.

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author Tulku, Y.I.
author_facet Tulku, Y.I.
citation_txt Small Innovative Enterprises in Ukraine and Europe: Tendencies, Problems, and Incentive Tools for Their Development / Y.I. Tulku // Економічний вісник Донбасу. — 2014. — № 4(38). — С. 73-78. — Бібліогр.: 9 назв. — англ.
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description The article aims to investigate the current situation of small innovative enterprises in Ukraine and compare changes in time and among countries. The analysis shows the tendencies, weaknesses, threats, which companies and national governments face with. It also could help to find new ways and incentives to improve the current positions and develop a strong strategy for the future. Стаття призвана дослідити поточну ситуацію розвитку малого інноваційного підприємництва в Україні та зробити порівняльний аналіз змін у часі та з іншими країнами. Аналіз показує тенденції, слабкі сторони, виклики, з якими зустрічаються компанії та уряди. Також проведене дослідження може допомогти знайти шляхи та стимули для поліпшення позицій і розробити сильну стратегію, орієнтовану на майбутнє. Статья призвана исследовать текущую ситуацию развития малого инновационного предпринимательства в Украине и сделать сравнительный анализ изменений во времени и с другими странами. Анализ показывает тенденции, слабые стороны, угрозы, с которыми встречаются компании и правительства. Также проведенное исследование может помочь найти пути и стимулы для улучшения текущих позиций и разработать сильную стратегию, ориентированную на будущее.
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fulltext Y. I. Tulku 73 Економічний вісник Донбасу № 4(38), 2014 UDC 330.341.1 (477) Y. I. Tulku, post graduate, Institute of Industrial Economics NAS of Ukraine, Kiev SMALL INNOVATIVE ENTERPRISES IN UKRAINE AND EUROPE: TENDENCIES, PROBLEMS, AND INCENTIVE TOOLS FOR THEIR DEVELOPMENT Problem definition. Ukraine’s positions in the world ranking system remain low: − The Global competitiveness index 2014 – 76 position of total 144; − The World Competitiveness by the Interna- tional Institute for management development 2014 – 60 out of 61 economies measured; − The Global innovation index 2014 – 63rd among 143 countries; − Investment climate is estimated as “rather un- favorable” by the 52% and “extremely unfavorable” by the 33% of respondents according to the research of European business association “Investment attractive- ness index (1st quarter 2015)” [6,8]. The basic economic indicators now reflect not on- ly the issues related to institutional gaps, and macroe- conomic instability, but also the pressure of armed conflict onto economic and social development of the country. The deep crisis in almost all areas of life; lack of political will for implementing real reforms, rising of militarization level of economy pushes Ukraine back to countries with low income, technological underde- velopment, and lost opportunities. Meanwhile, the world leading countries prove the fact that innovations nowadays become not only an effective tool for a sustainable growth, but also a first order conditions for the countries’ survival in the con- text of global competition. The results of a new PricewaterhouseCoopers’ re- search named “Growth through innovations 2015” have shown that the most innovative companies in the world expect more than 60% of growth and rise of total revenue at more than $250 billion within the next five years due to the complex approach to innovations in all the directions of their activity. As a part of a study a direct dependence between innovational leadership and significant growth of revenue was discovered. The innovations became a part of general operational ac- tivity of companies. A few years ago the most power- ful instrument for the majority of companies was an entry into the Chinese market, but now the biggest potential is provided by the innovations. [1]. At the same time the triple crises in Europe af- fected business innovation and R&D in a negative way. The market entry of innovative businesses in Europe was obstructed and risk capital dried out. Investment in innovation suffered due to the unstable market condi- tions and the macroeconomic situation. Surely, in times of uncertainty fewer companies would boost R&D spending and invest in innovation. This is especially valid for the small and medium enterprises (SMEs). The crises were a stress test for the small compa- nies and many failed to pass it. In the meantime, inno- vation demand for SMEs grew higher than ever be- cause it meant survival, productivity, growth and com- petitiveness [7]. As for Ukraine there is a wildly used assumption that the general economic situation in the country is so difficult and unfavorable to business that enterprises think how to survive rather than how to innovate and grow [9]. Although as it was reasonably pointed out above, innovations are really vulnerable to the crisis, they are still one of the key factors of growth irrespec- tively of geographical location or sectoral affiliation of a company. Currently, 99,8% of all firms in the EU are SMEs and this is why small innovative companies are crucial for the economic growth and sustainability. Small en- terprises are an integral part of the innovation process. They have to innovate to maintain market share and achieve greater efficiency. In the long-run, economic growth depends on the establishment and support of business environment that fosters innovation. Innova- tion-intensive countries which create and implement new technologies develop faster than countries that do not innovate. This is why innovative businesses have a special place in the long-run development of the EU [7]. The analysis of a current situation in a small inno- vative entrepreneurship in Ukraine and comparison with other countries in Europe could give us a glance at the tendencies, weaknesses, threats, which companies and national governments face with. It also could help us to find new ways and incentives to improve the current positions and develop a strong strategy for the future. The objective of the article is to estimate a level of Ukrainian small innovative enterprises development comparable to the European countries’ level, and to indicate main problems in this area. The analysis of the latest scientific research publications. Innovative activity of small and medium-sized business, quality of management, etc. are studied by S. de Mel, C. Woodruff, T. Edwards, R. Delbridge, M. Munday, S. Lindegaard. The value of small innovative enterprises (SIEs) for the national economic develop- Y. I. Tulku 74 Економічний вісник Донбасу № 4(38), 2014 ment, the necessity of government support are studied by A. Kostrov, V. Shovkaluk, and others. Problems of innovation activity including small enterprises are represented in research papers of J. Shumpeter, P. Druker, M. Porter , S. Rodzhers, B. Santo, R. Solow, V. Aleksandrova , G. Voljanik , N. Voljanik , Z. Varnalіj , A. Dagaєv, M. Denisenko, M. Dolishna, A. Kuznecova, M. Pashuta , A. Peresada, A. Podder 'ogіn, A. Poruchnik , V. Chaban, and others. At the same time there is a lack of qualified statistical analysis of SIEs’ development through time, quantitative and qual- itative changes, and the evolution of their problems compared with other European countries. Conceptual issues of research. The phenomena of “innovative entrepreneurship” as such is quite new and slightly researched in Ukraine. Moreover, small innovative entrepreneurship as an object of scientific research appears only in the early 2000s. In conditions like there is no generally agreed accurate definition neither in science nor in legislation, it is difficult to make a proper analysis, forecast, and especially to develop an innovation policy within the country. Up to 2009 it provided data only on innovative activity of industrial enterprises while there was no detailed in- formation on SMEs. Moreover, that data couldn’t be compared with European innovation indicators. Only in 2009 the Methodology of Community Innovation Surveys (CIS), that is used in EU, was adopted in Ukraine. This Methodology covers all types of eco- nomic activities and distinguishes SMEs from large enterprises [9]. Statistical data as regards small innovative entrepreneurship development in Ukraine is based on the European methodology CIS, which was implemented for monitoring the innovation activity in Europe, and for better understanding of innovation processes, influence of innovations on the national economy, competitiveness, employment, structure of trade, etc. In 2014 in Ukraine the last research of such a kind took place. There was a database of innovation activity in 2008-2010 and partially in 2010-2012. According to the Government office of statistics in Ukraine the total number of enterprises that implemented innovations during the period since 2000 to 2012 had a tendency to decrease, and only since 2009 the increase of this fig- ure occurred (figure 1). Fig. 1. Percentage of enterprises that had innovation activity, % Note: Compiled by the author with the data of [2]. It is worth mentioning that the percentage of in- novation active enterprises in total number of enter- prises in European Union is not less than 25%, and in average it is 50% (figure 2). In the diagram below there is a negative trend of innovation activity among industrial enterprises started in 2007, and increase since 2009 to 2012. In 2012 the share of innovative enterprises raised to 13,6%, and in 2013 has decreased to 12,9% (fig. 3). During the period under a study the number of implemented technological processes in the industrial enterprises after a significant decrease in 2005 has started to increase, that can be explained with the ne- cessity of modernization of old production in tradition- al sectors (figure 4). Development of new kinds of production after a sharp decline in 2002 remains on the same positions now. The number of enterprises which held innovative activity is represented on the figure 5. Despite of slight increase (less than 3%) of innovative enterprise since 2006 to 2012 the vast majority belong to “non innova- tive” category of enterprises (79,6%). Only 20,4 % of enterprises implement innovations mostly in marketing and organization. Processes improving is observed only in 0,9% of all enterprises – they are ongoing of interrupted. 0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 14,0% 16,0% 18,0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 18,0% 16,5% 18,0% 15,1% 13,7% 11,9% 11,2% 14,2% 13,0% 12,8% 13,8% 16,2% 17,4% Y. I. Tulku 75 Економічний вісник Донбасу № 4(38), 2014 Fig. 2. Percentage of innovative enterprises in EU (28) in 2010-2012(% of total number of enterprises) [3] Fig. 3. Number of enterprises which implemented innovations, and the percentage in the total number of enterprises [2, p. 181] Fig. 4. Innovations’ implementation in the industrial enterprises [2, p. 189] 0 5000 10000 15000 20000 25000 0 500 1000 1500 2000 2500 3000 New technological processes implemented Production of a new kinds of goods itemsprocesses Y. I. Tulku 76 Економічний вісник Донбасу № 4(38), 2014 Fig. 5. Classification of Ukrainian enterprises according to the type of innovation activity, % of total number, 2006-2012 [2, p. 219] In average in EU countries a share of enterprises with product/process innovations is 22,5% (table 1). The lowest rate is 4,0% (Romania), the highest is 35,8% (Germany). The leader in marketing/ organiza- tion innovations is Luxemburg with average of 39,6%, and the outsider in this context is Poland with 10,5%. Table 1 Percentage of innovative enterprises of EU (28) according to the type of innovations (% from the total number of innovative enterprises) [4] 18,0% 2,4% 3,3% 5,1% 0,8% 6,4% 82,0% 21,0% 1,6% 3,4% 4,2% 0,6% 11,2% 79,0% 20,4% 1,5% 3,2% 4,4% 0,9% 10,4% 79,6% Innovation enterprises Product innovative enterprises Process innovative enterprises Product and process innovative enterprises Enterprises with ongoing and abandoned innovations Marketing and organization innovative enterprises Non innovative enterprises 2006-2008 2008-2010 2010-2012 Y. I. Tulku 77 Економічний вісник Донбасу № 4(38), 2014 The share of innovative enterpries did not change significantly since 2006. [2, p. 218]. The share of medium-sized enterprises with innovation activity changed significantly in comparasion to small and large innovative enterprises (from 21,7% to 25,0%). For small enterpises this change was from 14,9% in 2006-2008 to 16,9% in 2010-2012, and for large enterprises – the share increased from 40,8% to 43,4%. In 2010-2012. Fig. 6. Innovation activity of enterprises depending on their size, unit [2, p. 218] It should be noticed that the specific character of researches of innovation processes in Ukraine is that more attention is paid to the enterprises with technological innovations (related to the development and implementation of technologically new and technology enhanced goods). Therefore, most figures of database in these researches are related to the enterprises of such a type and the main findings are not able to present the complete image. Conclusions and perspectives for the future re- search in this area. The current situation and main trends of small in- novative enterprises development can be described as follows: − Notably, small entrepreneurship has a high po- tential of development, that still remains not used in comparison with other European countries; − The rate of innovative enterprises in Ukraine was only 17,4%, at the same time in developed coun- tries this figure reaches 70-80%; − The low sectoral development ratio is ob- served, number of employees, sales, and others are among those basic figures; − Cutback in production of goods and services, that were new for an enterprise or for a market; − The expenditure structure of innovation com- panies still relates to buying of soft programs and mod- ernization of an old equipment; − There are no tight partner links with other in- novative organizations within a country, and abroad; − Low quality and inefficiency of governmental support of innovative enterprises. The bullet points described above give the exact diagnosis of the fundamental problems of Ukraine, especially in a part of the implementation of its nation- al potential, which is still strong though. As all can agree without making efforts to development of effec- tive tools and mechanisms for its implementation it is impossible to get a real value added. This can lead to reducing the chances for economic and technological breakthrough and well-deserved position in the global competition. References 1. Исследование PricewaterhouseCoopers: Прорывные инновации и рост бизнеса // www.pwc.ru/innovationsurvey. 2. Наукова та інно- ваційна діяльність в Україні. Статистичний збір- ник. К.: Держкомстат України, 2014, – 314 с. 3. Available at http://ec.europa.eu/eurostat/statistics- explained/index.php/File:Share_of_innovative_enterpri ses_by_main_type_of_innovation,_2010%E2%80%93 12_(%C2%B9)_(%25_of_all_enterprises)_YB15.png. 4. Available at http://ec.europa.eu/eurostat/statistics- explained/index.php/File:Share_of_innovative_enterpri ses,_2010%E2%80%9312_(%C2%B9)_(%25_of_all_e nterprises)_YB15.png. 5. EBA investment attractive- ness index 1st quarter 2015 // http://www.google. com.ua/url?sa=t&rct=j&q=&esrc=s&source=web&cd =2&ved=0CCMQFjAB&url=http%3A%2F%2Fwww.e ba.com.ua%2Fen%2Fabout-eba%2Findices%2Finvest 0 5000 10000 15000 20000 25000 30000 small medium sized large Total number of enterprises under study Non innovative enterprises Enterprises with innovation activity Y. I. Tulku 78 Економічний вісник Донбасу № 4(38), 2014 ment-attractiveness-index&ei=pjmRVa2LEoquswGDr ba QBw&usg=AFQjCNED4mo4FYTmXboLbu_2vXy 6z1BBEg&bvm=bv.96783405,d.bGg. 6. Innovation Union Scoreboard 2014 // http://www.google.com.ua/ url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved =0CB8QFjAA&url=http%3A%2F%2Fec.europa.eu% 2Fenterprise%2Fpolicies%2Finnovation%2Ffiles%2Fi us%2Fius-2014_en.pdf&ei=AzqRVdOFMcK2sQH fq q cw&usg=AFQjCNFilZVxCuG9EFiXAp5HDU-2 nla yog&bvm=bv.96783405,d.bGg. 7. Kalin Zahariev Small innovative companies make a big difference // http://www.martenscentre.eu/blog/small-innovative- companies-make-big-difference. 8. The Global Innova- tion Index 2014. The Human Factor in Innovation // www.globalinnovationindex.org. 9. Ukrainian SMEs Innovation Activity: Analytical Evidence and Net- working Opportunities // The Institute for Economic Research and Policy Consulting – Kiev on May 12, 2015 // http://4liberty.eu/ukrainian-smes-innovation- activity-analytical-evidence-and-networking-opportuni ties/. Тульку Я. І. Малі інноваційні підприємства в Україні та країнах Європи: тенденції, пробле- ми та стимулюючі інструменти розвитку Стаття призвана дослідити поточну ситуацію розвитку малого інноваційного підприємництва в Україні та зробити порівняльний аналіз змін у часі та з іншими країнами. Аналіз показує тенденції, слабкі сторони, виклики, з якими зустрічаються компанії та уряди. Також проведене дослідження може допомогти знайти шляхи та стимули для по- ліпшення позицій і розробити сильну стратегію, орієнтовану на майбутнє. Ключові слова: малі інноваційні підприємства, глобальний індекс інновацій, продуктові/ процесні/ маркетингові та організаційні інновації. Тульку Я. И. Малые инновационные пред- приятия в Украине и странах Европы: тенден- ции, проблемы и стимулирующие инструменты развития Статья призвана исследовать текущую ситуа- цию развития малого инновационного предприни- мательства в Украине и сделать сравнительный анализ изменений во времени и с другими страна- ми. Анализ показывает тенденции, слабые стороны, угрозы, с которыми встречаются компании и пра- вительства. Также проведенное исследование мо- жет помочь найти пути и стимулы для улучшения текущих позиций и разработать сильную страте- гию, ориентированную на будущее. Ключевые слова: малые инновационные пред- приятия, глобальный индекс инноваций, продукто- вые/процессные/маркетинговые и организационные инновации Tulku Y. I. Small Innovative Enterprises in Ukraine and Europe: Tendencies, Problems, and Incentive Tools for Their Development The article aims to investigate the current situa- tion of small innovative enterprises in Ukraine and compare changes in time and among countries. The analysis shows the tendencies, weaknesses, threats, which companies and national governments face with. It also could help to find new ways and incentives to improve the current positions and develop a strong strategy for the future. Keywords: small innovative enterprises, global innovation index, product/process/marketing and or- ganization innovations. Received by the editors: 28.11.2014 and final form 23.12.2014
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issn 1817-3772
language English
last_indexed 2025-12-07T16:12:15Z
publishDate 2014
publisher Інститут економіки промисловості НАН України
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spelling Tulku, Y.I.
2015-10-22T09:13:57Z
2015-10-22T09:13:57Z
2014
Small Innovative Enterprises in Ukraine and Europe: Tendencies, Problems, and Incentive Tools for Their Development / Y.I. Tulku // Економічний вісник Донбасу. — 2014. — № 4(38). — С. 73-78. — Бібліогр.: 9 назв. — англ.
1817-3772
https://nasplib.isofts.kiev.ua/handle/123456789/87622
330.341.1 (477)
The article aims to investigate the current situation of small innovative enterprises in Ukraine and compare changes in time and among countries. The analysis shows the tendencies, weaknesses, threats, which companies and national governments face with. It also could help to find new ways and incentives to improve the current positions and develop a strong strategy for the future.
Стаття призвана дослідити поточну ситуацію розвитку малого інноваційного підприємництва в Україні та зробити порівняльний аналіз змін у часі та з іншими країнами. Аналіз показує тенденції, слабкі сторони, виклики, з якими зустрічаються компанії та уряди. Також проведене дослідження може допомогти знайти шляхи та стимули для поліпшення позицій і розробити сильну стратегію, орієнтовану на майбутнє.
Статья призвана исследовать текущую ситуацию развития малого инновационного предпринимательства в Украине и сделать сравнительный анализ изменений во времени и с другими странами. Анализ показывает тенденции, слабые стороны, угрозы, с которыми встречаются компании и правительства. Также проведенное исследование может помочь найти пути и стимулы для улучшения текущих позиций и разработать сильную стратегию, ориентированную на будущее.
en
Інститут економіки промисловості НАН України
Економічний вісник Донбасу
International and Regional Economics
Small Innovative Enterprises in Ukraine and Europe: Tendencies, Problems, and Incentive Tools for Their Development
Малі інноваційні підприємства в Україні та країнах Європи: тенденції, проблеми та стимулюючі інструменти розвитку
Малые инновационные предприятия в Украине и странах Европы: тенденции, проблемы и стимулирующие инструменты развития
Article
published earlier
spellingShingle Small Innovative Enterprises in Ukraine and Europe: Tendencies, Problems, and Incentive Tools for Their Development
Tulku, Y.I.
International and Regional Economics
title Small Innovative Enterprises in Ukraine and Europe: Tendencies, Problems, and Incentive Tools for Their Development
title_alt Малі інноваційні підприємства в Україні та країнах Європи: тенденції, проблеми та стимулюючі інструменти розвитку
Малые инновационные предприятия в Украине и странах Европы: тенденции, проблемы и стимулирующие инструменты развития
title_full Small Innovative Enterprises in Ukraine and Europe: Tendencies, Problems, and Incentive Tools for Their Development
title_fullStr Small Innovative Enterprises in Ukraine and Europe: Tendencies, Problems, and Incentive Tools for Their Development
title_full_unstemmed Small Innovative Enterprises in Ukraine and Europe: Tendencies, Problems, and Incentive Tools for Their Development
title_short Small Innovative Enterprises in Ukraine and Europe: Tendencies, Problems, and Incentive Tools for Their Development
title_sort small innovative enterprises in ukraine and europe: tendencies, problems, and incentive tools for their development
topic International and Regional Economics
topic_facet International and Regional Economics
url https://nasplib.isofts.kiev.ua/handle/123456789/87622
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