THE ROLE OF SCIENTIFIC POTENTIAL IN THE FORMATION OF AN INNOVATION-DRIVEN MODEL OF ECONOMIC GROWTH

Abstract

Problem Statement. Scientific potential, which includes personnel, infrastructure, and funding, serves as the foundation for an innovation-driven growth model. In-depth research into its impact on the economy is particularly relevant for developing strategies to enhance national competitiveness. Research Objective. To conduct a comprehensive analysis of the dynamics and structure of Ukraine's scientific potential under martial law, aiming to identify the relationship between funding and human resources, and to substantiate the role of R&D intensity (as a percentage of GDP) as a key factor in transitioning to an innovation-oriented model of economic growth. Object of Research. The process of forming and functioning of an innovation-driven economic growth model through the utilization of the state's scientific potential.Research Methods. Structural-functional and comparative analysis; statistical observation; and grouping. Research Hypothesis. An effective transition to an innovation-driven economic growth model is only possible if a critical level of R&D intensity (1.7–2.0% of GDP) is achieved, ensuring the transformation of scientific knowledge into technological advantages and preventing brain drain. Main Body of Research. In 2024, 616 organizations conducted scientific research in Ukraine, 55.8% of which were state institutions. Total expenditures on science reached 28.3 billion UAH in 2024, which is 35% higher than the 2021 level. The business sector accounted for 60% of funding, while the higher education sector received 6.7%, though demonstrating the highest growth rates in expenditures per researcher. The R&D intensity relative to GDP in 2024 was 0.37%, which is 0.11% lower than the pre-war level. Originality and Practical Significance. The originality lies in identifying the sectoral characteristics of scientific activity. The practical significance is found in substantiating the need to increase state funding for science to the legally prescribed 1.7% of GDP to stimulate economic growth. Conclusions and Prospects for Further Research. Ukrainian science has adapted to wartime conditions, as evidenced by the nominal growth in research expenditures; however, funding levels below 0.4% of GDP constrain innovation-driven growth. Further research should focus on mechanisms for the commercialization of ideas and the development of tools to attract young scientists, drawing on the experience of OECD countries.