INVESTMENT AND INNOVATION IN THE UKRAINIANPOLISH TRANSBORDER REGION: THE EUROPEAN INTEGRATION CONTEXT
Abstract
The problems of development of investment and innovation activity in the Ukrainian-Polish cross-border region are researching. Attention is focused on informal institutions of influence on the formation of investment potential of the trans-border region. Mainly destructive influence of the institutional mechanism on investment-innovation processes in the Ukrainian-Polish border is proved. The key barriers for intensification of investment-innovation processes in the neighboring border regions of Ukraine and Poland are outlining.
Negative impact of border trade and cross-border labor migration for the investment climate and innovative potential of the cross-border region have showed. This leads to a restriction of investment and innovation activity and complicates the process of European integration of the near-border regions of West Ukraine. This is due to the significant level of illegalization of cross-border trade operations and migration processes. As a result, in the process of increasing their volume, the share of innovations in the economy of neighboring with Poland regions of Ukraine is decreasing. In addition, there is a reduction of the cost for researching and development as for investment in the innovative activities of industrial enterprises. Also, there is a decrease of the number of employees involved in the implementation of research and development. The measures aimed for overcoming the identified institutional dysfunctions and organizational and economic barriers in the process of further deepening European integration and bringing Ukraine closer to the EU have proposed. For achievement of this target, cooperation between local authorities and academic institutions and civil society institutions aimed at creating cross-border innovation hubs is proposed. In particular, priority is given to the need to implement the institutional foundations of the creative economy in the Ukrainian-Polish transborder region. It is also proposed to intensify the use of cross-sectoral partnerships for implement modern tools of innovations commercialization in the all territory of Ukrainian-Polish transborder region.
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