News of the Institute

On August 21, 2024, the 5th meeting of the discussion scientific platform under the Ministry of Economy of Ukraine was held, which was joined by more than 60 participants from specialized organizations and scientific institutions involved in the development and implementation of effective management solutions to key challenges of today – Institute for economics and forecasting of the National Academy of Sciences of Ukraine, Institute for Demography and Quality of Life Problems of the National Academy of Sciences of Ukraine, Institute of industrial economics of the National Academy of Sciences of Ukraine.

The research “Lack of budgetary resources and reserves for increasing revenues of the State Budget of Ukraine” was presented by Inna Lunina, Head of the Department of Public Finance of the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Doctor of Economics, Professor, Corresponding Member of the National Academy of Sciences of Ukraine. The study found that the priority areas for increasing tax revenues are measures to broaden the tax base and reduce budget revenue losses, primarily from value added tax. Based on the experience of EU countries, the study identified ways to detect abuses and tax evasion in advance and, accordingly, to significantly reduce budget revenue losses through digital transformation of tax administrations, introduction of real-time reporting and new requirements for electronic invoices, and mass cross-checking of VAT invoices.

The active using of new VAT administration tools in post-socialist EU countries has reduced the VAT tax gap (the difference between potential and actual revenues) on average in these countries from 26.6% of potential tax revenues in 2012 to 9% in 2021, while in Ukraine it exceeds 40%. Scenario assessments have shown that even if VAT evasion is partially eliminated, tax revenues to the State Budget of Ukraine in 2022 could be increased by at least UAH 86-180 billion, or 9-19%.

The meeting also featured speeches by Corresponding Member of the National Academy of Sciences of Ukraine Volodymyr Sarioglo and Lyudmyla Cherenko from the Institute of Demography and Quality of Life Problems of the National Academy of Sciences of Ukraine on the topic “Non-increase of utility tariffs under martial law: Pros and cons”; Dmytro LAZARENKO from the Institute of Industrial Economics of the National Academy of Sciences of Ukraine on ‘Establishment of joint ventures with foreign partners for the utilization and processing of construction waste (PPP)’; Bohdan LOGVYNENKO from the Institute of Industrial Economics of the National Academy of Sciences of Ukraine on ‘Strategic prospects for the development of lithium’.

The participants’ presentations sparked a lively discussion among the expert community on the possibilities of rapid response to critical threats caused by internal and external challenges. Today’s event contributed to the formation of a common position, effective coordination with government agencies and the development of specific practical solutions for the future economic development of Ukraine.

Researchers of the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine have prepared a forecast of food price indices in 2024.

A regular meeting of the scientific platform at the Ministry of Economy was held on July 29, 2024, where the results of new scientific research were presented. Developed scientifically based solutions were presented at the meeting by professional experts, representatives of leading scientific specialized institutions – SO “Institute for economics and forecasting of the National Academy of Sciences of Ukraine”, Institute of industrial economics of the National Academy of Sciences of Ukraine, SE “Ukrpromzovanshekspertiza” that contribute to the capacity of the government and society to meet today’s acute challenges, becoming the basis for implementing effective solutions, required for the recovery of the Ukrainian economy.

The discussion included a report by Doctor of Economics Vitaliy VENGER, the head of the Department of sectoral forecasts and market conditions of the SO “Institute for economics and forecasting of the National Academy of Sciences of Ukraine” entitled “Development of metal titanium production in Ukraine and prospects of integration into global added value chains” within the framework of the search and development of the TOP 10 investment projects to be implemented under the patronage of the first persons. The results of the study showed that the implementation of the project on the production of metal titanium products will provide macroeconomic and multiplier effects. In particular, it has been proven that the multiplier effect on the economy in general can ensure an average annual additional increase in the GDP of Ukraine at the level of 0.11–0.13 percentage points, and cumulatively for the first ten years of its activity, the contribution to the dynamics of the domestic GDP will be about 1.2– 1.5 p.p.

Calculations of the feasibility study of the investment project for the construction of a new plant for the metallic titanium products production showed that the project is attractive for investment for the state, domestic and foreign investors in terms of its prospects and profitability: the net present value is almost UAH 11.4 billion; internal rate of return – 17%; return on investment – more than 1.5; the profit-to-loss ratio will be 1.2; EBITDA – almost UAH 8.8 billion; the discounted payback period is almost 13 years. In addition, the implementation of the project will have positive effects for the socio-economic development of Ukraine during the entire period of its implementation: the creation of 3,500 qualitatively new jobs, the provision of significant tax revenues to the state and local budgets – 81 billion UAH, the budget multiplier – 9.2. This will contribute to the recovery of not only the titanium industry, but also provide powerful economic effects in related industries and will enable Ukraine to join global value-added chains and occupy niches in many promising markets – aviation, medical, transport, defense industry – which will have high growth rates in the medium-term annual growth.

The presentation caused a heated discussion. In particular, director of the SO “Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine”, academician of the National Academy of Sciences of Ukraine Valery HEYETS emphasized the need to spread the technology of production of final products from titanium raw materials, which in the context of growing security threats, requires government attention to finding alternative ways to create new plants. Volodymyr VLASYUK (SE “Ukrpromzovshekspertiza”) supported the importance of activating the public-private partnership to modernize the titanium industry; Oleksandra BETLIY (Institute of Economic Research and Political Consultations) raised the issue of transparent privatization in the titanium industry. Serhii POVAZHNIUK emphasized the importance of attracting a strategic investor partner to launch titanium production facilities, mentioning the successful example of Kazakhstan.

Anatoly BURYLKO, Chief Specialist of the Development and Support Department eco-modernization of industry and import substitution The Department of Industrial Policy of the Ministry of Strategic Industries supported the importance of implementing strategic initiatives to restore the titanium industry, pointing to their support by a number of government regulations. At the same time, the economic mechanism for establishing a full cycle of titanium raw materials processing will increase the amount of profit received from 1 ton of titanium from 10 to 100 times.

Nataliya GORSHKOVA, PhD in Economics, Director of the Department of Strategic Planning and Macroeconomic Forecasting at the Ministry of Economy of Ukraine, envisioned the possibility of promoting this project by developing proposals for the realization of opportunities to attract strategic investors – leading global companies from different countries.

Head of the Department of monetary and credit relations of the SO “Institute for economics and forecasting of the National Academy of Sciences of Ukraine”, Doctor of Economics Yevhen BUBLYK presented the results of a study on the topic “Ways of involving banks in lending to the domestic economy”, where he noted that in the conditions of war and external crises, the decrease in the share of bank lending in Ukraine from 72% to 14% of GDP was caused by the uncertainty of government priorities for credit support, the discouraging effect of deposit certificates and government bonds on the credit market, weak lending activity of state-owned banks, as well as the shortcomings of the current NBU monetary policy model. In order to achieve the optimal level of credit support for the economy at 40-50% of GDP, the loan portfolio of banks should grow by 1.5-3.0% of GDP annually by 2035, and by UAH 270 billion in the first year.

In the conditions of war, such an increase in bank loans cannot be ensured by purely market mechanisms. The activation of bank lending will require the implementation of large-scale state targeted programs of preferential lending in the processing, mining, transport and IT sectors, which demonstrate the most favorable ratio of received loans and share in the country’s GDP. The conducted calculations proved the possibility of reducing state expenses by reducing the profitability of the part of the government bonds, which is already in the portfolio of the NBU and state banks. In 2024–2025, such savings may amount to about 125 billion UAH, and by 2037 – more than 700 billion UAH. Such a saved resource will make it possible to implement large-scale targeted credit programs, as well as contribute to the reduction of passive income of banks and the corresponding stimulation of their credit activity.

According to the agenda of the meeting, the results of their research were presented by: Yaroslav KRYL (Institute of Industrial Economics of the National Academy of Sciences of Ukraine, Doctor of Economics, Director of “Voden Ukraine” LLC) – on the topic of “Development of hydrogen energy of Ukraine” as one of the TOP-10 investment projects , which should be implemented under the patronage of the first persons; Volodymyr VLASYUK, Director of SE “Ukrpromzovshekspertiza”, and Serhii POVAZHNYUK, Deputy Director for Development, on the topic “Purchase by Ukrzaliznytsia of domestic platforms for reloading during container transportation”; Volodymyr RYABOSHLYK (Ukrainian Union of Industrialists and Entrepreneurs USPP, Kyiv Academic University KAU, Kyiv National University of Economics KNEU and NC NRUNT) – on the topic “Creating a market environment favorable for commercial lending on the basis of the achieved overcoming of inflation (from low inflation to low market rates) );

The published scientific results caused a lively discussion among the participants of the event, during which the importance and necessity of their quick practical implementation was emphasized. The joint creation of Ukraine’s future as a European democratic state is possible only through joint efforts at all levels: science – production – government.

On July 10, 2024, the National University of Life and Environmental Sciences of Ukraine hosted the first roundtable of the PROGRESS Local Partners Coordination Group, co-organised and actively participated by scientists from the Institute for Economics and Forecasting of the NAS of Ukraine. The event brought together representatives of the project consortium, the Ministry of Agrarian Policy and Food of Ukraine, the Ministry of Environmental Protection and Natural Resources of Ukraine, as well as national and international organisations, agricultural associations, universities, research and professional institutions.

The regional project Promoting Green Deal Readiness in the Eastern Partnership Countries (PROGRESS) is one of the new initiatives of the Energy and Climate Cluster of the German Society for International Cooperation (GIZ), aimed at mitigating climate change impacts, fostering adaptation, and ensuring sustainable development in Eastern Partnership countries (Azerbaijan, Armenia, Georgia, Moldova, and Ukraine). Funded by the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV), the project will be implemented during 2024–2028. In Ukraine, the project is being implemented by a consortium of organizations, including GIZ, the Organization for Economic Cooperation and Development (OECD), and the Institute for Economics and Forecasting of the NAS of Ukraine.

The Institute for Economics and Forecasting of the NAS of Ukraine has involved many scientists in the PROGRESS project, including staff from the Sub-department of sectoral markets and the Sub-department of energy sector development and projections of the Department of sectoral forecasts and market conditions, the Department of forms and methods of management in the agri-food complex and the Department of monetary relations.

Representatives of the Institute’s working group reported on their main activities within the project, on promising climate-resilient practices in the agri-food sector, on standards for good agricultural and environmental conditions, and on current policies and practices in the field of green agricultural finance. According to Oleksandr Diachuk, PhD (Engin.) , the head of the working group from the Institute, a leading researcher of the Sub-department of energy sector development and projections of the Department of sectoral forecasts and market conditions, although today the biggest challenge and threat to our country is a full–scale war, climate change should be put in second place, as it poses significant short– and long–term threats, the negative consequences of which cannot be levelled quickly. Therefore, despite the war, the PROGRESS project is extremely relevant for Ukraine, its farmers, businesses, and citizens. ‘Thanks to the governments of Germany and Ukraine, as well as our partners at various levels, we can spread the best practices and methods of adapting agriculture to the effects of climate change throughout the country,’ Oleksandr Diachuk noted.

Olena Shubravska, Doctor of Economics, professor, head of the Department of forms and methods of management in the agri-food complex of the Institute for Economics and Forecasting of the NAS of Ukraine, noted that adapting agriculture to the negative impact of climate change involves primarily maintaining soil fertility, economical consumption of water resources, and conservation of biodiversity. The EU pays great attention to implementing climate-resilient practices, and their application involves mandatory conditions that are the basis for financing European farmers. It is obvious that such an approach should become a guideline for Ukraine as well. Reorientation to environmentally friendly and climate-resilient agri-food production is one of the key factors in ensuring its long-term sustainability, as well as a significant sign of the Ukrainian agricultural sector’s compliance with the EU’s requirements during integration.

Tamara Ostashko, chief researcher of the Institute for Economics and Forecasting of the NAS of Ukraine, Corresponding Member of the National Academy of Agrarian Sciences (NAAS) of Ukraine, referred to the climate-resilient practices of greenhouse fruit and berry growing in the EU, emphasising the feasibility of their implementation in Ukraine. The scientist noted that innovative greenhouse fruit and berry growing practices such as intelligent irrigation systems, aeroponics, use of renewable energy sources for heating, etc. reduce the carbon footprint of greenhouse products, the impact of external climatic conditions and the use of pesticides, and increase the efficiency of water, fertilisers and other resources.

The use of ‘green finance’ simultaneously opens up additional opportunities not only for participation in environmental protection but also for strengthening the competitiveness of the entire economy and individual businesses, indicated Yevhen Bublyk, Doctor of Economics, head of the Department of monetary relations at the Institute for Economics and Forecasting of the NAS of Ukraine. The scientist emphasized that to promote the implementation of the Sustainable Development Goals (SDGs), adaptation to climate challenges and the requirements of European integration, as well as the prospects for access to vast amounts of relevant funds, the spread of green finance combines the interests of the main participants in the agricultural sector – from government authorities and financial intermediaries to farmers and gardeners.

Other researchers from the Institute for Economics and Forecasting of the NAS of Ukraine also participated in the round table: Vitaliy Venger, Doctor of Economics, head of the Department of sectoral forecasts and market conditions; Roman Podoliets, PhD, head of the Sub-department of energy sector development and projections of the Department of the sectoral forecasting and market conditions; Olha Popova, Doctor of Economics, chief researcher of the Department of forms and methods of management in the agri-food complex; Svitlana Brus, PhD, leading researcher of the Department of monetary relations; Volodymyr Olefir, PhD, leading researcher of the Sub-department of sectoral marketsr of the Department of the sectoral forecasting and market conditions; Kateryna Prokopenko, PhD, leading researcher of the Department of forms and methods of management in the agri-food complex; Halyna Trypolska, PhD, leading researcher of the Sub-department of energy sector development and projections of the Department of the sectoral forecasting and market conditions; Yuliia Shapoval, PhD, senior researcher of the Department of monetary relations; Tetiana Saprykyna and Andrii Semeniuk, junior researchers of the Sub-department of energy sector development and projections of the Department of the sectoral forecasting and market conditions; Valentyna Denysenko, leading engineer of scientific and technical information.

Martina Kolb, Program Director of the PROGRESS project, noted that, given Ukraine’s accession negotiations with the EU, the project should support implementing all necessary requirements in the agricultural sector. Stakeholders from various groups are collaborating with the aim of strengthening the resilience and adaptation of the Ukrainian agricultural sector to climate risks.

Representatives of the GIZ Kyiv – project manager Dmytro Berezovsky and project advisor Artem Sadov – delivered a presentation on the historical background, features, and plans for implementing the PROGRESS project. OECD representatives Krzysztof Michalak, Isabella Neuweg, Olga Olson, and Nelly Petkova assessed the state of Ukraine’s agricultural policy in light of climate risks.

The roundtable demonstrated the critical importance of international cooperation and exchange of experience for successfully implementing the European Green Deal in Ukraine and other Eastern Partnership countries.

Information on the NAS of Ukraine website

Another issue of the program “About science. Competently” (presented by Academician of the National Academy of Sciences of Ukraine Volodymyr Semynozhenko), which is broadcast on the YouTube channel of the National Academy of Sciences of Ukraine, – “New Coordinate System for Innovations” – is dedicated to monitoring and evaluating the scientific, technical and innovative development and potential of our state. The guest of the program was the head of the department of innovation policy, economy and organization of high technologies of the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, corresponding member of the National Academy of Sciences of Ukraine Ihor Yehorov. 

Read in the article of V.K. Haustov, the scientist secretary of the SO “Institute of Economics and Forecasting of the NAS of Ukraine”, PhD (Engin.), “Will Ukrainian Science Supreme?”, published on Zn.ua on July 13, 2024.

“Economic prospects of entrepreneurship: challenges of wartime and post-war recovery” have been discussed by scientists at the VII International Workshop at the State Tax University (Irpin) on May 31, 2024. This annual scientific forum was held under the auspices of the Ministry of Education and Science of Ukraine and the Ministry of Finance of Ukraine. The event was co-organized by the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine. The workshop was attended by foreign partners – the Baltic International Academy (Latvia), Leibniz Institute of Agrarian Development in Central and Eastern Europe (Germany), and Zeliona Gura University (Poland).

The scientific issues discussed at the workshop included:

1. The international landscape and the key imperatives of the functioning of entrepreneurship in the world in the conditions of aggravation of global contradictions and threats.

2. Development of entrepreneurship in Ukraine during the war: domestic potential, conditions, state policy.

3. Post-war decompression of entrepreneurial initiative: drivers and limitations.

4. Advanced financial mechanisms for ensuring business efficiency.

5. Trends and tasks of the development of accounting, auditing and taxation of business entities.

6. Digital and environmental innovations: business and public opportunities.

7. Ukraine is a space of opportunities for business development: the view of young people.

In the course of the workshop, the key issues of discussion included ensuring the stability of the Ukrainian economy and individual companies, modern trends and threats to business development in war conditions, promising directions for the transformation of entrepreneurship and necessary state policy measures to strengthen and support the entrepreneurial sector.

Among the leading speakers of the plenary session were scientists from SO “Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine” and the SO ” M. I. Dolishnyi Institute of Regional Studies of the National Academy of Sciences of Ukraine”.

In particular, the report “Transformation of Ukrainian entrepreneurship and the potential for socio-economic solidarity in the wartime economy” was presented by Dr. Econ. Viktoriia Nebrat – Head of the Department of Economic History [presentation]. Various features and new trends of entrepreneurship in the conditions of full-scale war were presented, namely: absolute and relative increase in the informal economy, development of social entrepreneurship, transformation of corporate social responsibility strategies, growing role of farm and family production, spread of craft production, deeper processing of local agricultural raw materials and longer creation of added value, development of various forms of sharing economy (coworking, ridesharing, crowdfunding, fundraising platforms, etc.). sting of the National Academy of Sciences of Ukraine.

V. Nebrat revealed historical traditions, foreign experience and actual determinants of the development of economic forms of social solidarity in the conditions of war and post-war recovery. In the discussion on her presentation, the participants emphasized the importance of implementing the presented provisions into the educational process.

Chief Researcher of the Department of Forms and Methods of Management in the Agro-Food Complex at SO “Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine”, Dr. Econ., Professor, Honored Economist of Ukraine Lyubov Moldavan made a presentation on “Agro-ecological innovations in the post-war use of natural resources in agriculture”. The expert characterized the main challenges facing Ukraine’s agricultural sector and substantiated the need for agro-ecological farming as such that ensures the balance between economic, social and ecological components of agricultural development.

Chief Researcher of the Sub-Department of Sectoral markets, Department of Sectoral Forecasts and Market Conjuncture Dr. Econ. Oleh Pustovoyt brought to the discussion a few problems related to the necessity and possibilities of shortening the terms of the post-war recovery of Ukraine’s economy, finding ways to combine the efforts of the state, science and business for the structural modernization of production, and its export potential, the introduction of a new model of economic development capable to promote Ukraine’s integration in the EU. The scientist presented the results of his own research on “Individual priorities for the post-war recovery of Ukraine’s exports”.

The workshop organized by joint efforts of scientists, educators and practitioners serves as a prerequisite for raising the scientific level of professional education, contributes to the strengthening of the positions and realization of the socio-humanitarian mission of the National Academy of Sciences of Ukraine, and most importantly – creates a theoretical basis for solving the urgent tasks of economic stability and consolidation of Ukrainian society.

Information on the NAS of Ukraine website

On June 6, 2024, the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine hosted an international workshop on “International financial aspects of the recovery of Ukraine’s economy”, attended by scientists from Ukraine, Georgia, Kazakhstan and Italy, who tried to formulate proposals for the recovery of the Ukrainian socio-economic sphere during and after the war.

The experts discussed the following topics:

• the role and capabilities of Ukraine’s banking system of Ukraine in wartime conditions;

• participation of international financial organizations in the economic modernization of the country;

• the role of public-private partnership in recovering Ukraine’s economy;

• the role of international financial funds and organizations in the transformation of the economy;

• debt strategy and assessment of the state’s debt security level;

• multinational companies as global investors today;

• international capital migration in modern conditions;

• spatial and sectoral imperatives of the productive capacity of Ukrainian regions at the current stage of European integration.

Welcoming the participants, Director of the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Academician of the National Academy of Sciences of Ukraine Valery Heyets, emphasized the importance of solving the debt problem. According to him, threats, challenges and the state of finances within the country significantly depend on international capital flows. Since there are currently no ready-made tools for solving these problems, the joint thoughts and solutions formulated at the workshop on the above issues will help to develop steps to overcome Ukraine’s financial problems. Valeriy Heyets also noted the importance of using new tools using digital technologies, but emphasized that they can have both positive and negative consequences.

Interesting reports were delivered by the Deputy Director for Scientific Work of the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Academician of the National Academy of Sciences of Ukraine Andrii Hrytsenko and Corresponding Member of the National Academy of Sciences of Ukraine Serhii Korablin, Head of the Subcommittee on Capital Markets, Other Regulated Markets, Securities and Financial Derivatives of the Committee of the Supreme Council of Ukraine on Finance, Tax and Customs Policy Andrii Nikolayenko, Head of the Sector of International Financial Relations of the Public Finance Department at the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Doctor of Economics, Professor Olena Borzenko, Chief Researcher of the Sector of International Financial Research of the Public Finance Department at the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine Doctor of Economics, Professor Oleksandr Sharov, Professor of the Department of International Economic Relations of the Faculty of Economics of the Vasyl Stus Donetsk National University, Doctor of Economic Sciences Leonid Kisterskyi and others.

In his speech, People’s Deputy Andrii Nikolayenko drew attention to the need to carefully study the experience of the post-war recovery of the national economy based on the model of state capitalism, in particular the Republic of Korea (South Korea), which involves the active role of the state in the establishment and development of industries and corporate forms of production that are competitive on the foreign market. He welcomed the development and submission to the Verkhovna Rada of Ukraine and consideration in the first reading of the long-awaited draft law on the National Development Institution, which, by analogy with the so-called Marshall Plan [officially this document was called the European Recovery Program], should act in close coordination with an international financial institution – a transparent corporate structure through which financial and investment resources would be systematically directed for the economic recovery of Ukraine.

Academician of the National Academy of Sciences of Ukraine Andrii Hrytsenko emphasized that the recovery of Ukraine should be reconstructive, which means changing the development model, goal setting, and the priorities and mechanisms for achieving the goal. Special attention should be paid to the concept of nationally rooted development, which involves the assertion of sovereignty over the creation of own economic complex, the implementation of strategic planning as a condition for purposefulness and coordination of various and diverse efforts aimed at reconstructive recovery. In this context, the implementation of national target projects is of fundamental importance.

According to Doctor of Economics, Professor Oleksandr Sharov, it is important that the process of post-war economic recovery of Ukraine be based on a national development strategy, which could be called the “Kyiv Consensus”. The tasks of such a strategy should be fully consistent with our European integration program and contain effective anti-corruption safeguards.

Corresponding Member of the National Academy of Sciences of Ukraine Serhii Korablin called for a more realistic and rational approach to the prospects of attracting external financial funds for the purpose of post-war economic and social recovery. In this context, he gave the example of Iraq, where only 15% of total number of property cases regarding the compensation of damages and losses of national individuals and legal entities caused by military actions were compensated.

Doctor of Economics, Professor Leonid Kisterskyi supported the proposals regarding the priority need to create within the framework of the “Marshall Plan for Ukraine” – an appropriate international coordination center and an appropriate national state institution for post-war economic reconstruction, which would act on the principles of project regulation/management.

For the purpose of recovering the potential of our country after the war, Leading Researcher of the Sector of International Financial Relations of the Public Finance Department in the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Doctor of Political Sciences, Professor Ihor Pilyaev suggested involving Asian multilateral development banks, namely the Asian Development Bank (founded in 1966 on the initiative of the United States and Japan; current assets – more than 270 billion USD) and the Asian Infrastructure Investment Bank (founded in 2014 at the initiative of China; authorized capital – 100 billion USD).

The participants also noted the following points:

• the recovery experience of other countries should be considered, but Ukraine has its own unique conditions, so they should be taken into account and acted upon in accordance with national interests;

• EU and US countries are interested in returning their investments and loans, as well as in strengthening the security system in Europe;

• Ukraine needs not only to strengthen its security and defense, but also to form  a basis for sustainable long-term socio-economic development, therefore it is imperative to create a competitive military-innovative and processing economy based on a national consensus and effective anti-corruption safeguards.

         Based on the workshop’s materials, a collection of theses is planned to be published on the website of the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine.

Information on the NAS of Ukraine website

On June 7, 2024, employees of SO “Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine” took part in the hearings of the Committee of the Verkhovna Rada of Ukraine on Economic Development on “Post-legislative control in the field of compliance with the requirements for the presence of a local component (localization) in public procurement.” At the hearings, the participants presented the results of a survey carried out as part of post-legislative control of the effectiveness of implementation of the Law of Ukraine “On Amending the Law of Ukraine “On Public Procurement” regarding the creation of prerequisites for the sustainable development and modernization of domestic industry” and the results of regular monitoring of purchases with localization through the Prozoro system.

Among the important topics discussed during the hearings, a lively discussion was sparked by the issue of expanding the list of goods subject to the requirement of localization.

During his speech, the head of the Department of Sectoral Forecasts and Market Conjuncture, Doctor of Economics Vitalii VENGER reported that the researchers of SO “Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine” on the initiative of its director, Academician Valeriy HEYETS, as part of the activities of the Scientific Discussion Platform under the Ministry of Economy of Ukraine, and at the request of this ministry, prepared and presented a series of scientific and analytical materials on import substitution in public procurement at the expense of localization as one of the TOP-17 key research projects on the recovery of Ukraine’s economy. Senior researcher, Doctor of Economics Oksana KUSHNIRENKO supported the expansion of the list of goods subject to the requirement of localization, in particular with cable and wire products, justifying that the increase in public purchases of these products from domestic manufacturers will positively affect such key macroeconomic indicators as the country’s GDP, employment, taxes, budget etc.

Along with this, in her speech she pointed out as important for the efficiency of managerial decision-making in public procurement the proposals of the Committee of the Verkhovna Rada of Ukraine on Economic Development regarding the involvement of scientific and analytical centers in the development of the following issues:

– methods of analysis of the penetration of imports into public procurement;

– assessment of the impact of public procurement of goods with a local component (localization) on filling the state budget; and

– generalization of international experience regarding the definition of criteria for support of domestic producers.

The constructive dialogue of representatives of the government, business and analytical centers within the framework of the event showed the importance of consolidating the interests of key stakeholders in order to achieve a balance between the developmental needs of producers and customers and stability of the national economy.

Based on the results of the hearings, it is expected to develop recommendations for improving the country’s legislation acts to comply with the requirements for the presence of a local component (localization) in public procurement.

On May 30, 2024, the international seminar “Monitoring Scientific-Technological, and Innovative Development of Ukraine” was held at the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, co-organized by UNECE and the Ukrainian IP Office.

The seminar was opened with welcome speeches from Anatoly Zagorodny, President of the National Academy of Sciences of Ukraine, and Valeriy Heyets, Director of the Institute. Denis Kurbatov, Deputy Minister of Education and Science, also sent a greeting.

Approximately 100 participants attended the seminar, including representatives from the Ministry of Education and Science of Ukraine, the Ministry of Economy of Ukraine, and the Ukrainian IP Office. Representatives from UNECE traveled to Kyiv for in-person participation.

The relevance of scientific, technical, and innovative development is increasing due to global processes and the unprecedented challenges posed by the full-scale invasion. Developing effective national policies in science and innovation and their implementation requires prompt, relevant information on various aspects of science and innovation development, especially the personnel component and the connection between science and economic growth.

Olena Orliuk, Director of the Ukrainian National Office of Intellectual Property and Innovations, reported on the role of intellectual property in innovation processes and IP office’s activities in building innovation infrastructure.

Inna Shatova, Deputy Head of the Department of Intellectual Property and Innovations of the Ministry of Economy of Ukraine, focused on the regulatory and legal support for developing the intellectual property sector.

Oleksandra Antoniouk, Head of the Scientific Committee of the National Council of Ukraine on Science and Technology Development, familiarized participants with the activities of the Scientific Committee and its role in evaluating scientific, technical, and innovative activities in Ukraine.

Victor Grinchenko, former Director of the Institute of Hydromechanics of the National Academy of Sciences of Ukraine, presented his perspective on the use and impact of quantitative assessment indicators on research activity effectiveness.

Experts from the UNECE, Ralf Heinrich and Oscar Fast, presented a system of key indicators for monitoring innovation activities based on a combination of data from various sources (State Statistics Service, Ministry of Education and Science, WEF, etc.).

Their colleague, Janez Šušteršič, emphasized the use of data for policy formulation and provided examples of using non-traditional data sources for monitoring scientific, technical, and innovative development, such as application data for research calls and metadata from scientific publications.

Continuing the previous topic, Vitalii Gryga and Yulia Ryzhkova from the Institute for Economics and Forecasting  (IEF) of the National Academy of Sciences of Ukraine discussed issues with official statistics for monitoring scientific, technological, and innovation activities, ways to use data in policy formation, and the alignment of different indicators of strategic science and innovation development.

Olena Chmyr, Head of the Academic Resources Department at State Scientific Institution “Ukrainian Institute of Scientific and Technical Expertise and Information” (UkrISTEI), talked about the potential of using the national repository of academic texts for evaluation in the scientific and technical field of Ukraine as an additional source of operational information.

Igor Yegorov, Head of the Department of Innovation Policy, Economics, and Organization of High Technologies at the Institute of Economics and Forecasting of the National Academy of Sciences of Ukraine, focused his presentation on the methodological aspects and experience of calculating the European Innovation Scoreboard for Ukraine, as well as the prospects for its further use.

In the second part of the seminar, a panel discussion was held, moderated by Oleksandra Antoniouk (Scientific Committee of the National Council of Ukraine on Science and Technology Development, Doctor of physics and mathematics). Active participants in the discussion included Olha Kronda (IP Office Head of Department, PhD in Law), Oleg Khymenko (Head of the main department of the Ministry of Education and Science of Ukraine), Volodymyr Khaustov (Scientific Manager of the IEF, PhD in Engineering), Andrii Kovalenko (chief researcher Institute for Demography and Life Quality Problems NASU, Corresponding Member of NASU), Olena Chmyr (Department Head of UkrISTEI, Doctor of economics), Victor Grinchenko (Academician, ex-director of Institute of Hydromechanics), and other seminar participants.

During the discussion, the need to strengthen the influence of the expert community on the development of the statistical system for monitoring scientific, technical, and innovation activities was noted, as well as the importance of implementing modern technologies in the economy and critically analyzing relevant data. Additionally, the issue of evaluating scientific activities in the context of the new methodology for the attestation of scientific institutions and higher education establishments regarding their scientific (scientific-technical) activities sparked a lively debate.

The event underscored the importance of involving scientists in addressing the current challenges of national economic recovery and development under wartime conditions, as well as the effectiveness of establishing a productive dialogue between science, the public, and state governance bodies in policy development and implementation processes.

Information on the NAS of Ukraine website