Path for Ukraine's Economic Growth
This report examines Ukraine's economic decline and development through the lens of technology upgrading. The technology upgrading framework assumes that economic growth is a function of technology capability, whereby upgrading occurs through technological, industrial, and organizational change. This technology upgrading framework is applied to analyze the Ukrainian economy, which reflects its limited capability to generate, as well as absorb, new technology. The report finds that Ukraine ranks last among comparison countries in a composite index of technology upgrading, with especially low performance in terms of production, management, and R&D capabilities. A case study on Ukraine's booming ICT sector, Ukraine's fastest-growing sector, showcases the country's potential, while simultaneously demonstrating which factors and capabilities can constrain its future growth. While Ukraine has developed a vibrant ICT industry, significant challenges exist for its long-term success. To address the challenges, three main areas for policy action are recommended. These include: (1) the development of firms' managerial capabilities and adoption of productivity-enhancing technologies, (2) better integration into global value chains, and (3) supply and retention of a digital-ready workforce. The report also offers cross-cutting recommendations for improving Ukraine's business environment and the complementarities needed for firms’ growth and upgrading.
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| Format: | Report biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019-10
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| Subjects: | INFORMATION AND COMMUNICATION TECHNOLOGY, TECHNOLOGY INNOVATION, TECHNOLOGY INFRASTRUCTURE, DIGITAL TRANSFORMATION, BUSINESS ENVIRONMENT, MANAGERIAL CAPABILITIES, GLOBAL VALUE CHAIN, HUMAN CAPITAL, |
| Online Access: | http://documents.worldbank.org/curated/en/880431575641119051/Path-for-Ukraines-Economic-Growth-Technology-Upgrading https://hdl.handle.net/10986/32814 |
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| Summary: | This report examines Ukraine's
economic decline and development through the lens of
technology upgrading. The technology upgrading framework
assumes that economic growth is a function of technology
capability, whereby upgrading occurs through technological,
industrial, and organizational change. This technology
upgrading framework is applied to analyze the Ukrainian
economy, which reflects its limited capability to generate,
as well as absorb, new technology. The report finds that
Ukraine ranks last among comparison countries in a composite
index of technology upgrading, with especially low
performance in terms of production, management, and R&D
capabilities. A case study on Ukraine's booming ICT
sector, Ukraine's fastest-growing sector, showcases the
country's potential, while simultaneously demonstrating
which factors and capabilities can constrain its future
growth. While Ukraine has developed a vibrant ICT industry,
significant challenges exist for its long-term success. To
address the challenges, three main areas for policy action
are recommended. These include: (1) the development of
firms' managerial capabilities and adoption of
productivity-enhancing technologies, (2) better integration
into global value chains, and (3) supply and retention of a
digital-ready workforce. The report also offers
cross-cutting recommendations for improving Ukraine's
business environment and the complementarities needed for
firms’ growth and upgrading. |
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