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STRUCTURAL AND INNOVATION MODEL OF THE ECONOMIC DEVELOPMENT OF UKRAINE’S REGIONS

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UDC 332.12(477)
 
MARTYANOV Maksym,
Postgraduate Student at the Department of Economics and Production Management
 
 STRUCTURAL AND INNOVATION MODEL OF THE ECONOMIC DEVELOPMENT OF UKRAINE’S REGIONS
 
Background. In terms of transformational changes Ukraine's economy has experienced significant structural deformation that has become a deterrent factor of socio-economic development of the country, income growth, the development of innovative activities. At the heart of the regional economy of Ukraine dominate industry and economic activities that produce goods and services with low added value, using the technology of the 3rd and 4th technological structure, low potential involvement of existing human capital to solve economic issues. As a result, one of the most urgent issues of regional policy is to ensure structural change towards the development of innovative and competitive types and activities.
Analysis of recent research and publications showed that despite the significant number of publications on economic restructuring and innovation, restructuring issues as part of the socio-economic development and activation of innovative processes have not been studied enough.
The aim of the article is to rationalize the transition on the regional level to structural and innovative economic development as an effective tool of revitalization of the economy in terms of structural deformations and aggravation of the crisis tendencies.
Material and methods. The study used methods of structural and functional analysis, economic modeling.
Results. As part of the study the basic preconditions and factors that contribute to the formation of structural and innovative models of regional economies were examined. Basic structural elements of an innovative model that includes changes in sector and technological structure of the economy, human capital, creation of effective institutions and favorable social and ecological environment were studied.
Conclusion. The analysis carried out in the article shows that in today's economic development of Ukrainian regions the problem of restructuring and revitalization of innovation processes is a key one. Its solution requires a qualitatively new kind of economic and regional policy that basically should contain a set of activities to create innovative structural models of economic development. Introduction of this model can be performed using the tools available in the executive and local authorities at the regional level, involving central government resources for specific programs of structural innovation development.
 
Keywords: economy of the region, economic development model, innovation, structural deformation of the economy.

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