Statistics of Industrial Protectionism. Part II: The State Aid for Technological Development of the Industry
DOI:
https://doi.org/10.31767/su.3(106)2024.03.01Keywords:
state aid mechanism, research and development (R&D), innovation, encourage of business innovation, industrial research, experimental development, aid for research and innovation.Abstract
The second part of the article is devoted to the analysis of the legal framework for the mechanism of state aid to businesses in the EU, as well as assessments of the economic and statistical outcomes of its implementation. It is shown that in European countries, governments play a significant role in stimulating research and development (R&D) in the private sector and promoting innovation in the business sector through the state aid mechanism. The framework conditions for the implementation of this mechanism, introduced in 2014 and enhanced in 2022, aim to support the launch of innovative business projects and encourage public-private investments in breakthrough technologies, including the creation of digital products, processes, or services, as well as the development of testing and experimentation infrastructures to accelerate the commercialization of innovative products. The goal is to reduce vulnerabilities and dependencies in the economy and strengthen Europe's technological sovereignty.
It is shown that the German government actively provides state aid for R&D and innovation to local businesses. For nearly 70 years, a budget program supporting industrial research for companies has been implemented, playing a crucial role in solving the technological and economic challenges faced by enterprises in the industrial sector. Joint projects that receive state aid drive innovation across the entire value creation chain.
It is argued that, in the context of martial law and the challenges of post-war reconstruction, the Ukrainian industry requires comprehensive support. This is especially true for businesses capable of developing new technologies and producing innovative goods and services. To stimulate their development, it is recommended to draw on the experience of EU countries in providing state aid for R&D and innovation projects. It is emphasized that, given limited resources, the implementation of science, technology, and innovation policies without prioritizing the projects that will receive state aid will not yield the maximum possible effect and will not result in simultaneous breakthroughs across all sectors. Therefore, when introducing state support in Ukraine, priority should be given to projects aimed at the development and production of goods to meet the needs of the defense and security sectors, reduce dependence on imports, and increase high-tech exports.
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Published
2024-12-31
How to Cite
Krekhivskyi, O. V. . (2024). Statistics of Industrial Protectionism. Part II: The State Aid for Technological Development of the Industry. Statistics of Ukraine, 106(3), 4–26. https://doi.org/10.31767/su.3(106)2024.03.01
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