MACROECONOMIC ANALYSIS OF THE IMPACT OF INNOVATIONS ON THE ECONOMIC GROWTH OF ISRAEL
Authors: Shehynskyy Ihor 
Published: August 2023

Abstract. Countries that actively participate in the international division of labor in the globalized world economy are interdependent and have to withstand increasing competition for access to the markets of production factors, product markets, and often for the opportunity to survive, to remain on the political map of the world. An important factor that increases the competitiveness of national economies, makes it possible for them to achieve strategic goals, remains the implementation of scientific achievements in production, through maintaining the innovative activity of domestic economic entities at the appropriate level. There are not many countries in the world that have been implementing an innovative model of economic growth for a long time and, thanks to this, have maintained leadership in the world economy. In our opinion, one of the countries whose experience deserves to be studied by Ukrainian scientists is Israel – a country that, despite the unfavorable external environment, has been demonstrating positive dynamics of economic growth for a long time, the driver of which is the rapid implementation of innovations by national firms. The purpose of the study is to identify the impact of the innovative factor on the rate of economic growth in Israel. The publication examines the mechanisms of influence of innovations and innovative development of the state on the economic growth of a country that is unique from many points of view. Quantitative parameters of this influence were revealed using the construction of a correlation model, which confirmed the existence of a direct relationship between the introduction of innovations in production and the rate of development of the Israeli economy. The direct impact of the innovative component of business activity on such macroeconomic indicators as GDP, GDP per person, the number of exports and the amount of attracted foreign direct investments has been proven. It has been confirmed that the sector that generates innovations is a significant factor in attracting investments into the economy and increasing the share of the country’s high-tech exports. It also forms one of the biggest advantages that provide Israel with positive dynamics of real GDP growth and improvement of other indicators, including an increase in the level of employment, an increase in the competitiveness of the national economy, and a decrease in its import dependence. The experience of Israel is indicative, useful, important and worth imitating for Ukraine, as it demonstrates the approaches and directions in which the economy can and should be developed in conditions of instability and the impossibility of reliably predicting the development of events. To achieve the goal of the research, the following methods were used: generalization – to analyze economists’ views on the object of research; analysis and synthesis – to clarify the main scientific categories used in the article; graphical analysis – to visualize research results and statistical data; logical – to determine the factors of economic growth in Israel; comparative analysis – to assess innovative activity and the level of competitiveness of the Israeli economy; correlation-regression analysis – to create a model of the influence of factors of competitiveness of the national economy on macroeconomic indicators reflecting the level of economic development of the country. Key words: innovations, correlation analysis, innovative development, global innovation index, economic growth, competitiveness.