Kyiv National Taras Shevchenko University Regional Innovations in Transition Economies (the Case of Ukraine)

Market transformation of post-socialist countries was accompanied by innovative activity slowdown against the background of considerable economic recession and further crisis. The former economic system was characterized by selective approach to the innovations. Particularly, in the former Soviet Union, including Ukraine, demand on the innovations within military-industrial complex prevailed. Institutional and structural transformations, conversion of militaryindustrial complex, prolonged rehabilitation period had negative influence on the development of innovative sphere of Ukraine. At industrial enterprises introduction of new types of production decreased more than 3,6 times in 2005 in comparison with 1995, amount of innovatively – active enterprises – more than 2 times, and adoption of new technological processes – more than 1,6 times. Among factors, preventing the innovative activity of industrial enterprises at the present time, first of all, we should mention the following: economic factor (lack of own funds), excess expenditures on innovations, insufficient financial support of the state, high economic risks, imperfection of legislative basis, prolonged period of innovations’ recoupment, insufficient amounts of customers’ money etc. In addition, we could mention such factors as absence of opportunities for cooperation with other enterprises and scientific organizations, underdevelopment of informative base about new technologies and product markets, lack of highqualified personnel, low susceptibility of companies and enterprises to innovations, absence of proper demand on innovative production. As a result, specific weight of sold innovative production in total volume of sold production amounted just 6,5%