STRATEGIC DIRECTIONS OF PUBLIC POLICY FOR INNOVATION-BASED INDUSTRIAL RECOVERY AND RESTRUCTURING
Authors:   State Organization “Institute for Economics and Forecasting, NAS of Ukraine”, Tsyplitska Olena 
Published: September 2022

Introduction. For Ukraine, which, despite the broad international support for economic recovery and further socio-economic development, the strategic directions for innovative restructuring of the industry have not yet been finally formed. And the initiatives from the industrial sector representatives are not systematic and do not provide an integrated approach to the development of an innovative industrial development strategy. Careful planning will expand the local production and innovation base, promote the restructuring of the industrial sector to create products with higher added value. The paper is focused on studying foreign experience in identifying strategic directions and tools for their implementation to stimulate innovative renewal and restructuring of the industrial sector on new technological foundations. Materials and methods. The methodological basis of the research is general and special scientific methods: analysis and synthesis, in particular, elements of the case study and logical-historical analysis; deduction and induction; comparisons and generalization; institutional analysis; meta-analysis; statistical and tabular methods. The information base of the study was made up of statistical materials of the World Bank and Eurostat. Results and discussion. The innovative development of the industry depends on the nature of the market and public institutions, which have formed a certain type of business system. According to the theory of R. Whitley, six such systems are distinguished, differing in the degree of control of the owners, coordination between the state and the market, the degree of state intervention and interaction with employees. On the example of Denmark, Spain, China, Japan and other countries, the ways of innovative industrial restructuring in different business systems are demonstrated. An analysis of foreign experience has revealed two key areas of post-crisis industrial development strategies: public financing of innovative activities and high-tech sectors or market liberalization and the formation of effective mechanisms for structural changes in industry in basis of market signals. It is determined that Ukraine is characterized by a fragmented business system, which complicates the choice of approach to the strategy of industrial development. Conclusions. Despite hostilities in Ukraine, in order to ensure its competitiveness in the future, it is necessary to take advantage of the window of opportunity that opens up global competition and socio-economic and technological challenges by developing an integrated industrial strategy to address complex issues and interdependencies on the principles of "triple helix". Such a strategy should proceed from the type of innovative development business system, the existing institutional characteristics of the state and taking into account the structural and institutional changes that will occur in the state under the influence of fulfilling the conditions for entering the EU and compliance with technical regulations and the needs of the European and other promising markets.