Krasnova A.I., Kevkhaian L.

DEVELOPMENT OF THE  INVESTMENT AND INNOVATION ACTIVITIES IN UKRAINIAN INTEGRATION IN THE WORLD ECONOMY

     

In terms of active integration strategy of Ukraine for efficiency and expediency of application of special modes of investment and innovation activities become especially important nowadays. The research of the investment economy always has been in focus of economic researches.

There are a lot of scientists, who studied effeciency of investments. Among them are M. Robison, F. Ullah, M. Hammer, U. Sharp, Shum-Peter and others.

Economic situation that prevailed in Ukraine now, is very difficult. Among the set of reasons that contributed to the economic crisis and transition of Ukraine to maintain the way of growth, the most important reason is the low investment activity and the decline of innovation activity in Ukraine.

The objective of the article is to disclose the essence of investment and innovation, the main ways of attracting foreign capital and measures to stimulate investment and create a favorable climate for innovation activities in Ukraine.

 The evidence-based investment and innovation policy of the state is the main way for ensuring the release of Ukrainian economy from the crisis and its stable development.

In recent years Ukraine has successfully implemented a number of practical steps to promote the active integration into the world economy and the growth of investment attractiveness. In particular, an intergovernmental agreement on promotion and reciprocal protection of investments deals with more than 70 countries. On May 16, 2008 Ukraine received the status of a member of the World Trade Organization (WTO). The most significant advantage of Ukraine's accession to the WTO is: to increase foreign investment in Ukraine.

European integration remains unchanged and the main priority of Ukraine. Trade and economic cooperation between Ukraine and the EU has been developing rather dynamically. Every year the foreign trade turnover and the foreign direct investments (FDI) from the EU to Ukrainian economy is growing. Now, the EU is the biggest foreign trade partner of Ukraine in the world: 25 countries, the EU members, accounted 33% of foreign trade of Ukraine. The largest investments in Ukraine have been received from Cyprus, Germany, Netherlands, Austria, Poland, United Kingdom and France (table 1).

Table 1

The foreign direct investments to the Ukrainian economy from EU

 

In recent years, dynamic cooperation of Ukraine and the EU in the field of investment and innovation is developing.

Total growth of foreign capital in the economy of Ukraine from other countries amounted to USD 6 918,1 mln.  over the first half of 2009, which is almost 2,7 times higher then in the respective period of the last year.

The volume of foreign direct investments (FDI) into Ukraine as on July 1, 2009 reached USD 36,5 billions (tables 2), making 23,4% growth from the beginning of this year.

Table 2

Dynamics of foreign investments in the Ukrainian economy, USD,

     

Ukraine faces of the task of creating an effective system of reception of capital, which is based on modern principles of international economic relations. The main directions of future projects are: improvement of innovation surrounding and the sphere of innovation, developing the modern innovation infrastructure, creation the modern institutions funding research and innovation.

In case of successful integration of Ukraine into the EU, the level of investments directed to Ukraine will increase significantly. The most important conditions for attracting foreign investment are:  stabilizing the macroeconomic environment and improving laws and regulations. But these issues cannot be resolved without a general socio-economic stability in the country.