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The Methodological Challenges Concerning the Smart Specialization of Ukrainian Regions
Kryvoruchko M. Y.

Kryvoruchko, Mykhailo Yu. (2022) “The Methodological Challenges Concerning the Smart Specialization of Ukrainian Regions.” Business Inform 1:145–151.
https://doi.org/10.32983/2222-4459-2022-1-145-151

Section: Information Technologies in the Economy

UDC 001.8:[004:332.1(447)

Abstract:
The article addresses a study of methodological challenges concerning smart specialization of the regions of Ukraine. Within the terms of the preparation of the article, the theoretical and methodological foundations of smart specialization are examined, the discussion provisions of its methodology are distinguished, and its empirical evaluation is provided. Smart specialization is the direction of research in the field of regional economy, the attention of which is on entrepreneurial initiative and synergy of efforts of business and authorities. This approach focuses on practical entrepreneurial efforts without reference to macroeconomic policy. According to the results of the study, it is defined that, though a positive perception of smart specialization prevails amid domestic scholars, the discussed approach to regional development contains a number of methodological challenges, among which is worth noting the unreasonable use of the chosen methodology for calculating indicators to determine innovative activities and preserve the extant specialization of the regions of Ukraine, which remains raw material mainly. According to the results of the empirical analysis of the relationship between the share of regions in the structure of the cost of sold products of key sectors of the economy (industry, agriculture, retail trade) and disposable income per capita – one of the major indicators of socio-economic development – a lack of a strong positive correlation between the region’s specialization in agriculture and the level of income of the population is identified. Instead, a strong positive correlation is present between the volume of industrial products and retail trade in terms of sold articles and the level of disposable income. It is concluded that too much expectations from the impact of agricultural development on the economy of both the country as a whole and individual regions are unreasonable: the intersectoral synergistic effect of agricultural development is inferior to the effect of industrial development, especially when the raw material nature of domestic agricultural production be taken into account. Attention is focused on the discussion nature of the ratio of «sectoral vs. regional development»: the methodology for developing a regional development strategy proposed by European experts requires detailed consideration, extensive debate and careful use in the development of a regional development strategy in Ukraine.

Keywords: smart specialization, regional development planning, ratio of «sectoral vs. regional development», industry, agriculture.

Fig.: 3. Tabl.: 2. Bibl.: 12.

Kryvoruchko Mykhailo Yu. – Candidate of Sciences (Economics), Associate Professor, Department of Economics, Management and Administration, Cherkasy State Business College (243 V. Chornovola Str., Cherkasy, 18028, Ukraine)
Email: [email protected]

List of references in article

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Voznyak, H. V., and Kloba, T. L. “Smart Specialization as an Innovative Strategy for the Regional Economic Growth: Experience of Central and Eastern European Countries for Ukraine“. Biznes Inform, no. 11 (2020): 59-68. DOI: https://doi.org/10.32983/2222-4459-2020-11-59-68
“Sotsialno-ekonomichnyi rozvytok Ukrainy za 2020 rik“ [Socio-economic Development of Ukraine in 2020]. Derzhavna sluzhba statystyky Ukrainy. Kyiv, 2021. http://www.ukrstat.gov.ua/operativ/menu/infografika/2020/soc_ek_r_Ukr/soc_ek_r_Ukr_12_2020.pdf
Statystychnyi zbirnyk «Rehiony Ukrainy. 2020 rik» [Statistical Collection "Regions of Ukraine. 2020"], part 1. Kyiv: Derzhavna sluzhba statystyky Ukrainy, 2021.
Statystychnyi zbirnyk «Rehiony Ukrainy. 2020 rik» [Statistical Collection "Regions of Ukraine. 2020"], part 2. Kyiv: Derzhavna sluzhba statystyky Ukrainy, 2021.
Pererobna promyslovist rehioniv Ukrainy: problemy ta perspektyvy rozvytku [Processing Industry of the Regions of Ukraine: Problems and Prospects of Development]. Lviv, 2020.
“Proekt Yevropeiskoho Soiuzu «Pidtrymka polityky rehionalnoho rozvytku Ukrainy». Metodolohiia planuvannia rehionalnoho rozvytku v Ukraini. Instrument dlia rozrobky stratehii rehionalnoho rozvytku i planiv yikh realizatsii“ [European Union Project "Support to Ukraine's Regional Development Policy". Methodology of Regional Development Planning in Ukraine. A Tool for Developing Regional Development Strategies and Plans for Their Implementation]. https://kalushrda.gov.ua/images/news/Files/Методологія%20планування%20регіонального%20розвитку.pdf
“Rada ukhvalyla zakon pro lokalizatsiiu promyslovoho vyrobnytstva“ [The Council Passed a Law on the Localization of Industrial Production]. Ukrinform. March 21, 2022. https://www.ukrinform.ua/rubric-economy/3370486-rada-uhvalila-zakon-pro-lokalizaciu-promislovogo-virobnictva.html
“Skandalnyi zakon pro lokalizatsiiu ne maie zachepyty tovary z krain YeS ta SOT“ [The Scandalous Law on Localization Should Not Affect Goods from the EU and the WTO]. Yevropeiska pravda. August 05, 2020. https://www.eurointegration.com.ua/news/2020/08/5/7112874/
“Terytorialnyi rozvytok i rehionalna polityka. Stratehuvannia rehionalnoho rozvytku na zasadakh smart-spetsializatsii : naukova dopovid“ [Territorial Development and Regional Policy. Strategizing Regional Development on the Basis of Smart Specialization: A Scientific Report]. https://ird.gov.ua/irdp/p20210034.pdf
Fediaieva, M. S. “«Rozumna» spetsializatsiia yak instrument transformatsii natsionalnoi ekonomiky (teoretychnyi aspekt)“ [«Smart» Specialization as an Instrument for Transformation of the National Economy (Theoretical Aspects)]. Prychornomorski ekonomichni studii. 2018. http://bses.in.ua/journals/2018/26_1_2018/19.pdf
Cherevatskyi, D. Yu. et al. Tsyrkuliarna smart-spetsializatsiia staropromyslovykh shakhtarskykh rehioniv Ukrainy [Circular Smart Specialization of Old Industrial Mining Regions of Ukraine]. Kyiv, 2020.

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