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Endogenization of Economic Development through the Development of High-Tech Pharmaceutical Industries: Europe’s Experience, Lessons for Ukraine
Salikhova O. B., Honcharenko D. O.

Salikhova, Olena B., and Honcharenko, Daria O. (2020) “Endogenization of Economic Development through the Development of High-Tech Pharmaceutical Industries: Europe’s Experience, Lessons for Ukraine.” Business Inform 2:49–56.
https://doi.org/10.32983/2222-4459-2020-2-49-56

Section: Foreign Experience

UDC 330.341:336.5:338.45

Abstract:
The development of national pharmaceutical industries is not only a solution to the nation’s health, reducing the burden on pension systems and health care systems, but also the preservation of existing employment and the emergence of new jobs, scientific and innovative development, reduced dependence on imports, high value added activity and accelerated economic growth. The article is aimed at generalizing the features of forms and instruments of government assistance to the companies of pharmaceutical sector in Europe, substantiating the possibility of implementing best practices in Ukraine, defining the key guidelines of the State policy on the innovative development of the national pharmaceutical manufacturers and reducing the impact of exogenous factors on economic growth. It is determined that the pharmaceutical manufacturers in the EU countries receive financial assistance mainly through regional and horizontal mechanisms that national governments apply in the context of the technological, innovative and industrial priorities that are defined at the national level. It is substantiated that one of the most common horizontal mechanisms to facilitate the development of pharmaceutical industries in the EU is providing aids to economic entities in terms of their research, develop and innovation activities. The public procurement system is considered as one of the instruments to support and protect pharmaceutical manufacturers. Recommendations for Ukraine have been given, the implementation of which will accelerate the endogenization of economic development through the development of national high-tech pharmaceutical industries and related sectors of the economy.

Keywords: government assistance, public procurement, innovation, pharmaceutical production, development.

Bibl.: 27.

Salikhova Olena B. – Doctor of Sciences (Economics), Senior Research Fellow, Department of Modeling and Forecasting of Economic Development, Institute for Economics and Forecasting of NAS of Ukraine (26 Panasa Myrnoho Str., Kyiv, 01011, Ukraine)
Email: [email protected]
Honcharenko Daria O. – Chief Specialist, Department for Development of the Real Sector of the Economy of the Main Directorate of the Real Sector of the Economy of the Directorate for Pricing Policy and Development of the Real Sector of the Economy, Ministry for Development of Economy, Trade and Agriculture of Ukraine (12/2 M. Hrushevskoho Str., Kyiv, 01008, Ukraine)
Email: [email protected]

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