Publication: Path for Ukraine's Economic Growth: Technology Upgrading
Date
2019-10
ISSN
Published
2019-10
Author(s)
World Bank
Abstract
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.
Citation
“World Bank. 2019. Path for Ukraine's Economic Growth; Path for Ukraine's Economic Growth : Technology Upgrading. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/32814 License: CC BY 3.0 IGO.”