Nimkovych A.

Postgraduate of Kharkiv National Economic

University named by S. Kuznec

Regional innovation system in the context of the European Innovation Policy

The article characterizes the concept of regional innovation systems, defines structure and relationships between elements and tools of interaction. Basing on the theoretical knowledge, the main RIS problems of Ukraine.

Key words: regional innovation system, innovation policy, EU, system of interconnection.

Formulation of the problem. Question of objective understanding of the structure and the proper interaction of elements of regional innovation system (RIS) is one of the first steps to develop Ukrainian RIS and its implementation. The gap of Ukraine from world trends in scientific and technological development have led to socio-economic and structural-technological lag. Organizational and economic mechanisms of implementation of regional innovation policy is not enough worked effectively, there is a weak response of state and regional authorities to challenges of the modern economy that demands efficiency innovation.

Analysis of recent researches and publications. Scientific works are domestic and foreign scholars such as G. Nadon, B. Danylyshyn, Degtyaryova I. Tretyak V., Geyets V., Kizim M. Vasiliev A., Bubenko P., R. Martin, M. Porter are dedicated to theoretical and practical problems of creation, functioning national and regional innovation systems. However, the problem of innovation systems in the context of European innovation policy needs further study.

Aim of the article – disclosure of regional innovation systems, their tools and prospects in Ukraine, taking into account the principles of modern regional policy.

Presenting the main material. The experience of successful economies in the world shows that the most effective innovation development process occurs within the establishment and operation of a particular innovation system. In this respect, in domestic and foreign literature we use the concept of regional innovation system, but this time there is no single definition that takes into account all aspects of the system. So the RIS defines innovation as cumulative and non-linear system process. This follows from the interactions between the different actors of the system. The companies are the main carriers of technological knowledge and know-how as well as primary agents in search of innovation. However, the innovation of the system also depends on the performance of other subjects (such as universities and research centers) RIS conditions.

The emergence of the XXI century new technologies, globalization, consolidation of budgets have resulted in inceasingly the role of the regions in economic activity. In particular, the EU is characterized by forming the three-level innovation policy, including regional and national components and supranational component that connects all the countries of the European Union. In the context of an innovative economy a regional component becomes rather more structural than redistributive nature. Governments have priority in the field of fundamental research, training, including research and development, and the regions are increasingly giving effect to spread innovation policy.

Examples of stabilizing influence of the EU on the innovative development of certain areas is the work of a regional network of centers of innovation. These centers act in the status of independent consulting organizations in the field of technology and business. They receive support from the European Commission for Enterprise and promote innovative business in such areas as technology transfer, commercialization of R & D, protection of intellectual property, the development of adaptive capacities of companies to new technology (the selection of partners); Innovation-implementation of transnational initiatives, information on EU innovation policy. Another example of the regional innovation policy can result in the development and implementation of five-year framework of EU programs in the field of research that provide for the development of regional innovation cooperation through integrated projects and program to create a network of European Research Area (ERA).

The difference between the modern approach to innovation and innovation processes is that innovation in the system of knowledge economy is based not so much on the new combination of resources and inventions as it was in the era of industrial economy as on the effective use of information flow knowledge obtained from scientific progress and technology. The main feature of post-industrial type of reproduction is so-called external effects or the development of strong positive feedbacks of production process of knowledge. Therefore, adequate regulation of distribution channel of information in modern society is the key to higher rates of socio-economic and cultural development of society as a whole [2]. Today there exist the following major trends that change innovations force the regions to assume more active role:

1) increasing the impact of globalization;

2) increasing demand for innovation to solve social and environmental problems;

3) the growing importance of innovation networks.

According to research of the European Commission of the United Nations [3] different types of regional innovation systems can co-exist within the same country, including information centers, industrial areas of production, the development of which is not associated with the influence of science and technology (S&T). The experience of the European Union confirms the trend of formation of EU innovation system as a set of regional innovation systems, which the supranational and national authorities coordinate work on their creation. The interaction between regional and national policies for innovation and regional development is aimed at the influence on the development of innovation in specific areas. Regional innovation policy is increasingly faced with certain their requirements to prove its effectiveness.

Thus, according to the experts` opinion [3], Austria, Belgium, Germany, Spain and Switzerland are examples of the countries where regions have received broad autonomy, which they can use to implement innovation policy at the subnational level. On the other hand, in smaller regions or centralized countries such as Greece, Portugal innovation is carried out at the national level.

Regional innovation system begins with the Declaration of innovation at macroeconomic level state, forming a state policy, which then goes down to the regional level. Thus, regional innovation policy is implemented, which in turn connect regional structures. These structures include the sphere of education, production, market and infrastructure, and together they generate knowledge i.e. innovation. That is just the result of a regional innovation system, which is further implemented both in production and in the market, education and infrastructure realms. In this case, there is a synergistic effect due to relationships of different areas on the creation and innovation in the economy. The main elements of the RIS and their relationships are shown in Fig. 1. In this RIS structure the state plays only the role of regulator of the relationships. Education, namely, research institutes, universities and other research institutions interact with the sphere of production, getting information about the economy and providing the latest developments both on the organization of the production sector and on the new product samples.

A production sphere in turn interacts with the market, generating knowledge and innovation, to promote products to consumers, for marketing and other areas of cooperation. Considering interaction of the market sphere with infrastructure, they are interdependent. Thus, the market shows its needs in sales, which were previously obtained from the production and infrastructure sector, in turn, creates all necessary conditions to support innovations, their development and spread.

Macroeconomic policy of the state

State

Regulatory policy in the region

Education

Infrastructure

Manufacture

Generating knowledge

Market

Fig. 1 The main elements of the RIS and their relationships

The interaction between all the above mentioned RIS elements is realized through the implementation of various groups of RIS instruments (Table. 1).

Table 1

Tools of regional innovation policy

Tools	Knowledge Generation	Using Knowledge	Dissemination of Knowledge
Traditional Tools	Technology funds, R&D Incentives, grants. Support of research and technological centers. Support of infrastructure development. Human capital for S & T	Research Parks. Technology transfer, departments and programs to technology brokers. Mobility of attraction of talents, rewards for innovation	Business incubators. Supports of start-ups. Innovative services (support of business and coaching). Education and awareness in innovation
New tools	Public-private cooperation of innovation. Research networks / sectors Research and private partnership Training centers Cross-border research centers	Innovation vouchers. Certification / Accreditation Franchising	Industrial giants. Supporting creativity and talent. International funds of supporting projects Innovation benchmarketing

Traditionally, the foundation of sustainable long-term competitive advantages results in technological innovation. Research conducted within the «Regional innovation systems» and «European Regional Innovation Survey» (ERIS), showed that:

1) small and medium enterprises (SMEs) as opposed to big companies rely primarily on the regional networks;

2) support and assistance in the promotion of the regional government innovation processes is essential, but not sufficient condition for the development of regional innovation systems;

3) SMEs pay more attention to internal ties than establishing partnerships with research organizations;

4) organizations that perform ancillary functions such as technology centers, technology transfer centers play a smaller role than it was expected [4].

In general the analysis of European experience of forming innovative systems, macroeconomic features of individual countries, and the results of state regional policy in innovation and other factors reveals that the most successful direction of development of the national innovation system is its formation as a set of institutional regional innovation systems.

Creating the conditions for forming needs in goods and services of modern technological structure – one of the tasks of the national innovation system (NIS) and its subsystems. Experience shows that the cohesion policy of socio-economic development is the primary characteristic of the era of industrialization and it is aimed at the allocation of the capital assets in the regions for the production of a typical mass production and concentration of labor, was replaced by a policy of equalization effects of opening the internal market.

In Ukraine, the budget equalization backward in adapting to market conditions in the region have not yet led to the expected results.

Solving these problems in almost every region seen in the development of regional production, which today is hardly possible without innovation. However, it is important to understand that innovation – is not only new scientific idea, a product with which to build a successful production, that is to commercialize this product. Innovation – not a goal but a means of competitiveness. In practice anywhere today can consider themselves those regions that have sufficient production capacity established high-tech production, with cheap and skilled labor and cheap resources. However, at this point in most parts of the country there is shortage of certain resources, and consumes all its organizational and financial "strength" to fight for the very limited investment resources.

So, we can determine these constraints hindering the formation of modern regional innovation systems in Ukraine: the competences needed for the development of the knowledge economy are limited and shrinking: reduction of inventive activity in the region due to lack of state policy in the field of intellectual property; low level of FDI limits the prospects for technology diffusion; enterprises with foreign participation is the main official channel for technology transfer; regions demonstrate the business potential, but its effective use requires further improvement of the business environment, so that the existence of systemic barriers significantly limit the level of innovative activity; Although manufacturing industry plays an important role in the economic system most regions, it is dominated by traditional sectors with disabilities original rapid innovation; lack of financing and high level of competition, which is typical for most public companies, managers are not always properly understand in which direction the market they should invest and how to modernize their businesses [5]. These barriers not only hinder the development of an innovative, but also significantly affect the quality of life of regions.

Among the most important areas of improvement of mechanism innovation policy in the region should be included:

• design and development of regional research and innovation infrastructure;

• separation of powers in the field of research and innovation development between the center, regions and economic entities of the region and their associations;

• improving the funding of innovative research and development;

• organization of innovation process in the region on a project basis;

• organization of marketing support innovative programs and projects.

In terms of hard environment for examples of successful practices in the EU must solve the problem to address common barriers in the process of regional cooperation. An important component of regional innovation policy in the post-industrial development should be taken to address the problems of external economic integration, primarily associated with a significant increase in global and regional competition. On these principles need to apply a comprehensive integrated approach to advanced technological change in the region where the object of control appears not separate species or the result of innovative technology and regional innovation system, which covers all the processes of innovation cycle simultaneously with the provision of special significance criterion improving the competitiveness of the region as the final result of regional innovation policy. In this context it is necessary to use additional tools to achieve the goals of creation of knowledge, dissemination and use a combination of traditional instruments (such as support for human capital and skills) and tools emerging
(e.g. new generation of science parks) or experimental instruments (e.g. public procurement). The effectiveness of such policies should be evaluated through systematic interaction of these different instruments together.

Conclusions. In terms of institutional change management system, moving the spotlight on the innovative development of Ukraine is an urgent task in the way of ensuring the competitiveness of the national economy as a whole. In this context, the main aim of innovation policy is to create a system that provides effective interaction of public administration of enterprises and organizations innovative areas for the use of science and technology for social and economic development of the territory, and creating conditions for raising the technological level and competitiveness of industrial production and on that basis, sustainable productivity growth in the material sphere of regional economy. Thus, it is about creating a modern regional innovation system. Building RIS should be the strategic direction of industrial upgrading, access to modern, comparable with advanced European countries level of development.

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http://128.118.178.162/eps/othr/papers/0503/0503003.pdf

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