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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| 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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| 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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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
|
| id | nasplib_isofts_kiev_ua-123456789-87622 |
| institution | Digital Library of Periodicals of National Academy of Sciences of Ukraine |
| issn | 1817-3772 |
| language | English |
| last_indexed | 2025-12-07T16:12:15Z |
| publishDate | 2014 |
| publisher | Інститут економіки промисловості НАН України |
| record_format | dspace |
| 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 |
| work_keys_str_mv | AT tulkuyi smallinnovativeenterprisesinukraineandeuropetendenciesproblemsandincentivetoolsfortheirdevelopment AT tulkuyi malíínnovacíinípídpriêmstvavukraínítakraínahêvropitendencííproblemitastimulûûčíínstrumentirozvitku AT tulkuyi malyeinnovacionnyepredpriâtiâvukraineistranahevropytendenciiproblemyistimuliruûŝieinstrumentyrazvitiâ |