Experts of the Advisory Council to the Ministry of Economy of Ukraine have developed a policy paper focused on advancing the country’s innovative economic growth. The document outlines strategic recommendations for fostering human capital, building new scientific partnerships, and implementing regional development programs.

“Innovation is a key driver of sustainable economic growth and resilience,” said Yurii Gorodnichenko, Chairman of International Academic Board at KSE, professor at University of California, Berkeley. “Scientific research also holds vital importance during wartime, laying the groundwork for breakthroughs in military technology and medicine. The recommendations we’ve presented offer a long-term strategy for bolstering Ukraine’s defence capabilities and driving post-war recovery.”

The full-scale war has taken a heavy toll on Ukraine’s scientific community: between 10% and 20% of researchers have emigrated, while more than 120 research institutions and universities have been destroyed. Many international scientific collaborations have been severed, leaving Ukraine with the challenge of rebuilding its network and forging new partnerships with Western countries. 

The state of innovation in Ukraine paints a bleak picture. In 2023, the country ranked 55th in the Global Innovation Index. Despite notable advancements in IT, engineering, and medicine, overall research and development (R&D) spending remains at just 0.5% of GDP. Outdated infrastructure and a lack of incentives continue to drive many Ukrainian scientists to seek opportunities abroad.

To address these challenges, the authors recommend developing human capital, fostering a new generation of scientists through targeted government policies, and engaging the Ukrainian scientific diaspora. Expanding exemptions of international research grants from income tax is proposed as a way to create more favourable conditions for the sector’s growth.

To integrate with international scientific networks, the Advisory Board advocates for deepening cooperation with Western research institutions, the Ukrainian diaspora, and the global scientific community. Leveraging Ukraine’s expertise in military technologies and developing proposals for grants from the Horizon Europe programme and other international sources is highlighted as a key strategy for achieving this goal.

For regional innovation development, the focus is on boosting resilience by investing in universities and research infrastructure. The recommendations emphasize the importance of positioning regional universities as hubs of innovation and economic growth, while fostering collaboration between the scientific sector and businesses.

The Advisory Council, chaired by Yurii Gorodnichenko, Chairman of International Academic Board at KSE, professor at University of California, Berkeley, and including Tymofiy Mylovanov, President of KSE, is involved in developing recommendations on the architecture of Ukraine’s recovery in a broad context, including fiscal and monetary policy, the labour market, and government regulations.