Economic science/12. Agricultural economics
Shubravska O.V.
Institute for Economics and Forecasting
NAS of
Agro-innovative Development of Ukraine: Goals,
Factors, Issues
Currently, the innovation factor is the determining
factor in the process of progressive development of the socio-economic systems
as a whole and its individual sectors, including agricultural. Innovations form
the foundation of sustainable development of agricultural production, improving
the competitive position of the field on the domestic and global markets, solving
long-overdue problems of improving the efficiency of use and rehabilitation of
natural resources used in the production process.
The lack of funds among many farmers and the underdevelopment
of national agricultural innovation systems are called by international experts
among the main causes of crises and structural deformations in the national
agricultural sectors of developing countries.
In Ukraine, despite the declared at the highest level
the need for transition economy and its agricultural component to the
innovative model of development, the formation of the national agricultural
innovation system is very far from complete. Moreover, it is possible to
ascertain its fragmentation and the lack of real stimulating effect on it by
government agencies.
At present, the agricultural science of Ukraine by 75%
is financed from the budget. This confirms the ineffectiveness of reforms
conducted in industry, the result of which, in particular, was the loss of
stable relations of science with agricultural production and weak
commercialization of scientific developments. However, in developed countries,
agricultural science is one of the most commercialized [1].
In the field of agricultural innovations most of the
problems arises from a lack of knowledge among farmers, lack of financial availability,
in many cases – of unsatisfactory quality of offered innovative projects and inactive
system of promotion them to consumers. Low is the level of commercialization of
agricultural innovation.
Thus, the priority is to create favorable economic and
legal climate, the formation of the developed innovation infrastructure,
ensuring the consistency of government innovation policy. In this area the
state must proceed, first and foremost, not so much on indicators of economic
effectiveness of any agricultural innovation project, as to take into account a
number of other equally important factors, such as: agro-ecological efficiency,
increasing the employment in rural areas, improving the quality and,
consequently, the competitiveness of the field.
World experience shows that with proper prioritization
of agricultural innovation development, the level of commercialization of such
innovations is growing as a whole quite rapidly.
Obviously, a full copying by Ukraine of foreign
experience in the sphere of agricultural innovation development is impossible
and impractical. The reason for this is the presence of significant national,
social, legal, economic differences. However, it seems that the use in Ukraine
of a number of measures to stimulate the commercialization of innovations,
applied by the developed countries, can be very promising. Among such measures
are the following groups:
- tax measures, in particular, the deduction of
R&D expenses when determining the tax base; accelerated amortization on R&D
investment; tax holidays on income associated with the implementation of
R&D; lowering the tax rate on property used for R&D; targeted tax
incentives related to geographic, field characteristics, company size, etc.; reduction
of customs duties, and so on;
- legal measures, in particular, the acceleration and
simplification of the licensing process; the establishment of minimum rates for
licensing and patenting; the creation of special economic zones and other
objects of innovative infrastructure; the development of venture capital;
- measures of direct budget support, in particular,
the provision of state grants and loans for R&D implementation as well as state
guarantees for attraction of foreign investments and development of innovations;
- measures to develop innovation infrastructure, in
particular, training highly skilled personnel; stimulation of venture capital
funds; create new and support (if needed) previously created objects of
innovation infrastructure.
Despite the ongoing economic crisis the Ukrainian
agricultural business, as a whole demonstrates its commitment to innovative
solutions. This among other things allows it to provide significant savings of
production resources. So, as a result of rising energy prices and energy
shortages, more and more agricultural producers seeking to ensure energy
conservation by energy production from agricultural secondary products (waste). For example, the largest producer of sunflower oil the
company "Creative", 70-75% covers its energy demand after installing
special boilers for combustion of sunflower husk. The agricultural holding
"Svarog West Group" one-third reduces the
energy consumption due to the use of pellets and biogas. Other holdings also efficiently
implement energy projects.
Farmers also used a high technology in manufacturing.
Accurate field measurement and analysis of soil samples is
carried out, the location of tracts of land and infrastructural facilities is
visualized, monitoring of equipment and of fuel consumption is used, accounting
system is automatized, special programs for
agro-management on the basis of geoinformation
systems are used etc. Multicopters also help to
assess the condition of the acreage and the need for agricultural work.
Assessment of crops and problem areas with the aid of drones is helping
Ukrainian farmers by 5-10% to increase the efficiency of their work, because it
allows better determine the status of germination, and timely and accurately
apply the required plant protection products and fertilizers.
Although the
use of IT systems in the agricultural management still has not found wide
distribution, but gradually the popularity of these systems among the native
farmers grow. So, the program eFarmer developed by
company KM Ware, in two years scored 2.6 million users in Ukraine. This program
allows the leaders of the farm remotely with the help of GPS, to create virtual
map of the grounds to plan the cultivation of crops (quantity of seeds and
their types, fertilizers, equipment). Similar project is now preparing for livestock
farmers.
It is also particularly noteworthy the role of new
technologies and innovative solutions in improving the state of natural
environment and resources of agricultural production.
The ecologization of Ukrainian
agricultural production needs a wide implementation of resource-saving
strategies and innovative technologies of soil processing by the example of
minimum/no tillage (Mini-till/No-till). With the support of the World Bank, FAO
made a first attempt at quantitative analysis of the benefit that could bring
large-scale implementation in Ukraine of technologies for conservation
agriculture. A preliminary assessment indicates the presence of a significant
potential effect on the level of individual farms and the entire country. The
potential annual effect on the national level from implementation of resource
saving technologies (plowless tillage) on 17 million
hectares could reach $4.4 billion [2].
References:
1. Innovatsiyi v ahrarnomu sektori [Innovations in the agrarian sector]. Retrieved from http://www.logos.biz.ua/proj/vynahid/vol2/100.php [in
Ukrainian].
2. Ukraine: Soil fertility to strengthen climate
resilience. – FAO: Rome, 2014. – 79 p.