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5/11/2016 Commercialization of Technology in Ukraine Report Paper SEOSTAR

Commercialization of Technology in Ukraine P

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Page 1: Commercialization of Technology in Ukraine P

5/11/2016

Commercialization of Technology in Ukraine Report Paper

SEOSTAR ✪

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Table of Contents

1. INTRODUCTION ................................................................................................................... 2

2. OVERVIEW OF SCIENTIFIC & RESEARCH SECTOR ................................................................... 2

2.1 Main challenges .......................................................................................................................... 3

2.2 Structure of sector ...................................................................................................................... 4

2.3 Independency & Transparency ................................................................................................... 8

2.4 Demographic situation................................................................................................................ 9

2.5 Most famous people originated and migrated from Ukraine .................................................. 11

2.5 Current situation with work ...................................................................................................... 12

2.6 Organizational/funding reforms that have taken / is taking place .......................................... 13

2.7 International cooperation within the sector ............................................................................ 14

2.8 History of development after 1990 .......................................................................................... 15

3. TECHNOLOGY TRANSFER AND COMMERCIALIZATION IN UKRAINE ........................................ 16

3.1 Current situation ....................................................................................................................... 16

3.2 Problems of commercialization ................................................................................................ 19

3.3 Recommendations .................................................................................................................... 20

3.4 Conclusion ................................................................................................................................. 21

4. ANNEX 1 - INFORMATION ABOUT THE ACTORS WITHIN THE SECTOR AND THE RATING OF THE

INSTITUTES/UNIVERSITIES ........................................................................................................ 21

5. ANNEX 2 - LIST OF SUCCESS STORIES IN COMMERCIALIZATION OF TECHNOLOGY................... 23

6. REFERENCES ......................................................................................................................... 25

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1. INTRODUCTION

This work aimed to evaluate and analyse commercialization of technology and science sector in

Ukraine. Currently Ukrainian science and research industry occupy a 13th place in Science and

Technology category among the other 124 countries in accordance with Good Country Index (The

Good Country, 2016). It demonstrates positive prospective and result, despite the fact that country’s

political and economic situation are not stable, the level of inflation and corruption are high. However,

the number of certified professionals is the main driver of progress and technology development is

globalization. Nowadays, globalization is stronger than ever, and Ukraine is not exceptional, it was

influenced a lot. The barriers for data exchange, research and development activities - are rapidly

eliminated, scientists can have access to data and technologies through all over the world.

2. OVERVIEW OF SCIENTIFIC & RESEARCH SECTOR

The development of any modern economy is significantly dependent upon the level of development

of its science and technology sector. The decades of experience indicate that research and development

are more important factors that drives the economy and growth.

As for now, the world market of high technology products is about 2.3 trillion. US. a year, the share

of Ukraine is not more than 0.05% of its volume. Experts predict that demand for high-tech industrial

and consumer markets 10-15 years reach 3.5-4 trillion. US. Understanding customer needs, the ability

to realize the scientific and technological potential into profitable commercial projects is a prerequisite

for success in the market of high technologies. Thus, the special interest worthy of study in marketing

approach to promote high-tech products.

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2.1 Main challenges

The main challenges for Ukraine in the development of science and technology:

Unstable political and economic situation in country

High inflation rate 20.9 % (Tradingeconomics, 2016)

Many young and talented are leaving the country for better opportunities

Low salary due to market situation

High dynamics of market – technologies are changing very fast

High competition worldwide due to globalisation

High value of brand name producers

Although, there is a high inflation, it demonstrates recovery since April, 2015 60,9%. See the table

below:

The future of the market of high technologies in Ukraine is its significant backlog of markets as highly

developed countries and from the world market as a whole. The main reason experts say is the entire

subordinated long-term high-tech sector of the military-industrial complex. As a result, today there is

no mechanism to attract investments in high-tech industries, not infrastructure market intellectual

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property, enterprise specializing in developing and manufacturing high-tech products, there is little

experience and skills in market conditions.

2.2 Structure of sector

Laws and regulations

In Ukraine, the formation of zones of high technology began in the late 90s of last century.

Parliament adopted the law "On Special Investment and innovation of technology parks"

Semiconductor technologies and materials, optoelectronics and sensor technology "," Electric

Welding Institute named after EO Paton "," Institute for Single Crystals ".

Preferential terms of functioning as cancelled and normal subjects’ innovation - potential

partners for technology parks. The Law of Ukraine "On State Budget of Ukraine for 2005"

excluded articles that assumed the features of tax and customs innovation regulation

performers innovation beyond technology parks. This also provided funds to subsidize such

projects. So, now in Ukraine there is no direct or indirect state support innovation and

innovative sector of the country returns to the state beginning in 1999 In this regard, it is worth

noting that compared to the amount of benefits granted to free economic zones, incentives for

domestic technological parks is almost negligible.

From the latest documents significant achievement was the adoption of the Law of Ukraine "On

innovation activity priorities in Ukraine» №433-IV of 16 January 2003, which formulated the

legal, economic and organizational basis for the formation and implementation of the priority

areas in the country. The purpose of the law is a legislative provision of resources in the major

areas of scientific and technological renewal of production and service sectors in the country,

the needs of society in high-tech, competitive, environmentally friendly products, quality

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services, increase export potential state, the output of competitive high technology products for

the global market.

Financing

Despite the high potential Ukraine from year to year funding cuts its own scientific field.

Compared with 1991, when contributions to research were 2.44%, now local researchers have

a really survive. It is for the government than to advanced technologies in 2015 to finance the

sector allocated only 0.5% of GDP.

State funding is one of the main financial instrument sciences, technology and innovation policy

economically developed countries, the main form of direct state support of innovative

development.

Total expenditures of the state budget of Ukraine in 2014 to finance scientific field in 56 major

budget programs 32 spending money - customers’ scientific works were: the plan -

5,598,280,000. UAH., including 4,118,040,000. UAH. or 73.6% from the general fund;

1,480,240,000. UAH. or 26.4% - of the special fund; financed - 5,278,520,000. UAH., of which

from the general fund - 4,085,260,000. UAH. (77.4% of the planned amount), special -

1,193,260,000. UAH. (22.6%)

Analysis of the distribution of total funding scientific sphere by spending units shows that the

largest expenditures for funding scientific sphere have five spending units around them

accounted for almost 88% of spending (4,639,550,000. UAH).

Meanwhile, a 100-point scale in 2012-2014, our country, according to the innovation index,

gained 36.3 points. The world leader - Switzerland - received 64.8 points, United States - 60.1,

neighbouring Russia - 39.1.

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Add that to the world innovation index takes into account such factors as academic institutions,

human capital, infrastructure, domestic market development, business development,

innovation and practical results of creative activity

The situation with financing is quietly dramatic in Ukraine. The government spent less and less.

The graph below – demonstrates these changes:

(Slovo & Dilo, 2015)

0,00

0,50

1,00

1,50

2,00

2,50

3,00

1985 1990 1995 2000 2005 2010 2015 2020

FINANCING OF TECHNOLOGY IN UKRAINE % FROM GDP

2,44

1,20

0,82 0,73 0,75 0,770,66

0,5

-0,50

0,00

0,50

1,00

1,50

2,00

2,50

3,00

1990 2000 2010 2011 2012 2013 2014 2015

Financing of technology in Ukraine % from GDP

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Institutions

Ukraine has a great number of institutions oriented to prepare technical specialists and develop

technology and science sector. Despite the fact, that government decreases investments in

science and technology, there are thousands of specialists that graduate and work each year.

The overall number of technical institutions in Ukraine is 61 from 440 all institutions in Ukraine.

Also, Ukraine has 1 academy of science: National Academy of Sciences of Ukraine.

The Ukrainian Academy of Sciences, founded in 1919, has sections of physical engineering and

mathematical sciences, and chemical engineering and biological sciences; it holds 66 scientific

and technical research institutes attached to it. The Ukrainian Academy of Agrarian Sciences has

13 research institutes, and the Ukrainian Academy of Medical Sciences has six research

institutes. All three academies are headquartered in Kiev. A botanical museum is situated in

Kiev. Ukraine has 92 universities, polytechnics, and institutes that offer courses in basic and

applied scientific disciplines. In 1987–97, science and engineering students accounted for 42%

of university registration. In 2002, research and development (R&D) expenditures totalled

$2,805.687 million, or 1.18% of GDP. Of that amount, the government offered the largest

portion at 37.4%, followed by the business sector at 33.4%, foreign sources at 26.2%, higher

education and private non-profit organizations at 0.4% each, with 2.3% listed as undistributed.

During that same year, there were 1,749 scientists and engineers, and 456 technicians engaged

in R&D per million people. High technology exports in 2002 were valued at $572 million,

accounting for 5% of the country's manufactured exports (Encyclopedia.com, 2016).

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2.3 Independence & Transparency

The information agency Ukrinform is holding a press-conference, where the Regional Press

Development Institute will publish the monitoring results on transparency of 100 websites of

higher educational institutions of Ukraine.

The monitoring, research was extended out to estimate the quality of informing international

citizens as to the admission requirements to higher educational institutions of Ukraine and

training there. The monitoring criteria of websites included availability of general data

concerning an educational institution and the information needed for admission, training and

stay of international students in Ukraine. There was also estimated the fullness of present

information, its translation into foreign languages and good access to it.

Rule of law

Ukraine has made some progress in fighting corruption, but considerable problems persist. The

removal of Victor Yanukovych ended the extensive graft by the president, his family, and his

closest associates. However, the old oligarchies continue to benefit financially from their close

association with top politicians. Even in areas controlled by the national government, the

judiciary remains weak, and contracts may not be well enforced.

Regulatory efficiency

The labour code is outmoded and lacks flexibility. The government influences prices through

state-owned enterprises. The IMF reports that 740 state-owned enterprises registered losses

amounting to about 1 percent of GDP in 2014 and that, as a group, SOEs have accumulated

substantial liabilities amounting to more than 12 percent of GDP.

Business Freedom 56.8

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Labour Freedom 47.9 Monetary Freedom 66.9

Open markets

Ukraine’s average tariff rate is 2.1 percent. Government procurement procedures favour local

companies. Foreign investors may not purchase agricultural land, and the investment frame-

work remains underdeveloped with other sectoral restrictions. The Russia–Ukraine conflict

continues to interfere with trade and investment streams. The large figure of non-performing

loans continues to be a drag on the banking system.

Trade Freedom 85.8 Investment Freedom 20.0 Financial Freedom 30.0

2.4 Demographic situation

Major urban areas - population: KYIV (capital) 2.942 million; Kharkiv 1.441 million; Odesa 1.01

million; Dnipropetrovsk 957,000; Donetsk 934,000; Zaporizhzhya 753,000 (2015)

Due to the complex situation in Ukrainian economy and politic situation there are many people

that decided to migrate. The fourth wave - the so-called "migrant" - began in the 1990s. Its main

reasons - economic hardship of transition in Ukraine. Some researchers emphasize the

deliberate creation of unemployment, mostly - in Western Ukraine. As a result, for temporary

work in Europe, America and Russia have left about 7.8 million. People. Some of them probably

will not return to Ukraine.

According to the director of the Institute for Diaspora Studies (Kyiv) Igor Vinnichenko 2001

lived outside Ukraine 10-13 million. Ukrainian.

Due to the fact that outside of their own country was forced to travel under pressure from

economic, political and military circumstances active part of the nation, but also because of the

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lack of full Ukrainian state on ethnic Ukrainian lands, in the new EU settlement abroad

Ukrainians continued and developed the national government (UNR), political (virtually the

entire spectrum of political parties in the Diaspora), social, cultural, scientific and religious

institutions. For the Ukrainian diaspora one of the highest social-cultural values was the goal of

full restoration of the Ukrainian state.

Current demographic situation in Ukraine

Age structure:

0-14 years: 15.22% (male 3,480,870/female 3,281,363)

15-24 years: 10.85% (male 2,470,594/female 2,349,313)

25-54 years: 44.63% (male 9,703,407/female 10,126,348)

55-64 years: 13.5% (male 2,563,195/female 3,435,022)

65 years and over: 15.8% (male 2,343,097/female 4,676,262) (2015 est.)

Dependency ratios:

total dependency ratio: 43.3%

youth dependency ratio: 21.4%

elderly dependency ratio: 21.9%

potential support ratio: 4.6% (2015 est.)

Median age:

total: 40.1 years

male: 37 years

female: 43.3 years (2015 est.)

Population growth rate: 0.6% (2015 est.)

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Birth rate: 10.72 births/1,000 population (2015 est.)

Death rate: 14.46 deaths/1,000 population (2015 est.)

Net migration rate: -2.25 migrant(s)/1,000 population (2015 est.)

Education expenditures: 6.7% of GDP (2012)

Literacy: age 15 and over can read and write total population: 99.8%

2.5 Most famous people originated and migrated from Ukraine

1. Steve Wozniak

One of the founders, perhaps the most famous companies in the world - Apple. His father was

born in the village of Krasnaya Dubrava in Bukovina. Two Steves - Jobs and Wozniak - had been

friends at school, and when grown in the same together ushered in the era of personal

computers.

2. Igor Sikorsky

Future genius was born in Kiev. First he gained worldwide recognition in the 24 - his plane "Ilya

Muromets" was the record in capacity. Subsequently, the aircraft went to the States, where he

opened his own company - Sicorski Air Engineering.

He used helicopters armed forces of the United States. And that "birds" Ukrainian engineer first

ever flew the Atlantic and the Pacific. Since its planes and helicopters continents together and

allowed to overcome the vast distances in a matter of hours.

3. Max Levchin

In Silicon Valley in the US, which is famous for its concentration of high-tech companies, has also

distinguished us. In his 27 Kievan Max Levchin established payment system PayPal, which now

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enjoys a world. Ukraine left the guy at 16. Today it is one of the most successful and richest

programmers Valley.

4. Heidemarie Stefanyshyn-Piper

According to the Foreign Ministry press service, American astronaut of Ukrainian

extraction HeidemarieStefanyshyn-Piper intends to visit Ukraine after the Atlantis space

mission is over. The Atlantis was launched from Cape Canavaral in Florida on September 9 with

six astronauts on board. The Atlantis crew includes one Canadian and five Americans, one of

whom is Heidemarie Stefanyshyn-Piper. The crew's space mission is scheduled to last twelve

days. Heidemarie Stefanyshyn-Piper is supposed to make two out of the crew's three space

walks, each lasting about six and a half hours.

The American female astronaut has two uncles and two aunts in Ukraine, who are her father's

brothers and sisters.

2.5 Current situation with work

Currently, there are many Ukrainian professionals and researchers that are looking for

opportunities abroad. This is due the current drastic economic situation in country and very low

wages on local market. People are willing to work for foreign market, because even if they bit a

low rate on the foreign market, they still win at local. Salary in $ is most attractive perspective.

Current exchange rates are very unbalanced. Therefore, 1/3 of Ukrainian It professionals are

working for foreign market.

Now the market has more than 123 000 freelancers from different cities of Ukraine. Most of

them work in the IT, in particular - in web development and mobile application development.

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Their number is constantly growing: in 2014 alone, 31 000 new Ukrainian specialists were

registered on the platform. In 2015, the company expects growth at the same level or higher.

Freelancers who use Upwork, set their own hourly rate. Working for foreign customers,

Ukrainian developers may earn $ 20-30 per hour depending on skills, experience and the rating

on the platform. Professional developers with a good rating, on average, 25% more than other

freelancers (Ain.UA, 2015).

2.6 Organizational/funding reforms that have taken / is taking place

Kyiv, October 5, 2015 – Despite a few encouraging signs of economic stabilization seen in July

and August 2015, in its new Ukraine Macroeconomic Update the World Bank projects real GDP

to go down by 12 percent this year, down from an earlier projected 7.5 percent decline. The

macroeconomic policy mix adopted by the authorities proved to be effective in mitigating a

much more painful shock on the country’s economy, but the on-going conflict in the east has

made stabilization more difficult. Coupled with an unfavourable global economic environment,

it has gone to a much sharper contraction in the economy.

Ukraine’s economic recovery depends on whether the authorities continue implementing

much-needed macroeconomic and structural reforms, even as periodic flaring up of conflict

adds troubles. If reforms continue, a gradual recovery is possible starting from 2016. It is

anticipated to be driven by net exports, capital investment and privatization.

Despite lower GDP growth in 2015, the country’s general fiscal and budget performance has so

far been better than anticipated. The current account saw declining pressures and reached a

balance earlier this year, but risks confronting Ukraine remain high. To guard against these

risks, it is very important that authorities continue with flexible exchange rate regime and

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prudent fiscal policy. They need to redouble efforts at fighting corruption and improving

governance. They need to continue reforms to reduce Naftogaz imbalances and strengthen the

energy sector’s capacity. In addition, the authorities need to boost confidence in the banking

system (World Bank, 2016).

2.7 International cooperation within the sector

Ukraine joins Horizon 2020 to work with EU in science and research

Researchers, businesses and innovators from Ukraine will now be capable to fully participate in

Horizon 2020, the European Union's research and innovation funding program, on equal terms

with EU Member States and other associated countries. This is thanks to the Agreement for the

Association of Ukraine to Horizon 2020, signed today in Kyiv by Carlos Moedas, European

Commissioner for Research, Science and Innovation, and Serhiy Kvit, Minister of Education and

Science of Ukraine.

Commissioner Moedas said: "I merely pleased to welcome Ukraine into our EU research funding

program Horizon 2020. Ukraine has chosen to invest in its cognition and in its people. Chosen

to contribute to the common goals of the broader science and technology community. Ukraine's

great research and innovation potential offer promising partnerships in Europe. And Ukraine

will now have access to the entire spectrum of activities funded under the Horizon 2020, helping

spur its economy. I hope Ukraine will make the most of these chances."

Horizon 2020 is the first EU program in which Ukraine has chosen to participate following the

beginning of provisional application of the EU-Ukraine Association Agreement. This association

to Horizon 2020 highlights that both the EU and Ukraine consider research and innovation

crucial for economic development and the creation of jobs (Europa.eu, 2015).

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The agreement opens a wide orbit of new opportunities to Ukrainian research institutions,

universities and businesses across the whole research and innovation, value chain, from

fundamental research up to close-to-market activities. For instance, Ukraine will now be

capable to host European Research Council (ERC) grants, apply for financial support to

innovative SMEs, benefit from support for scientific excellence and other research policies and

participate in the governance structures of the program (Europa.eu, 2015).

Background

With a budget of almost € 80 billion for 2014-2020, Horizon 2020 is the largest multinational

program dedicated to research and innovation. In its predecessor, FP7, Ukraine was one of the

top ten most performing third countries, with a total number of 274 successful participations in

a sum of 207 retained proposals. The top five priority areas with retained participation from

Ukraine have been an environment (including Climate Change); tape drive (including

aeronautics); Nanosciences, nanotechnologies, materials and new production technologies;

food, agriculture and fisheries, biotechnologies; and space (Europa.eu, 2015).

Today's agreement will need to be ratified by the Ukrainian Parliament to enter into force, but

Ukrainian legal entities can already participate in all Horizon 2020 actions funded under the

2015 budget, as this association covers the years 2015-2020. Ukraine has also requested

association to the Euratom Research and Training Program but negotiations need to trace a

separate track (Europa.eu, 2015).

2.8 History of development after 1990

In the field of science in general in Ukraine pose great difficulties, low level of funding, the crisis

of production and lean enterprise demand for scientific development. This resulted in

insufficient logistical and personnel support of scientific institutions, which have received

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almost no modern devices and computing. Some institutions have lost 50-60% of their

employees who left the country or moved to other areas. Already in 1994 it was known that in

western countries have gone from Ukraine to thirty thousand. Scientists, mainly from natural

and applied sciences. As a result of a decline in the prestige of scientific work decrease

professionalism scientists' reluctance of young people to enter the graduate school there and

the lack of competition. This situation does not give hope for a quick exit from the crisis, Ukraine,

although many scientists working in this direction.

In the mid 90's gradually changing attitude to fundamental research in the institutes of NAS of

Ukraine develop its relations with some foreign research institutions. In 1996-1997 pp., After

the establishment of the structure of government in the Ukraine special Ministry of Science,

headed by Academician Semynozhenko, the work of many scientific institutions activated.

Dynamically developing Humanities, new institutions, new research directions. In particular,

the Institute established Ukrainian, Institute of Oriental Studies named after A. Krymsky

Institute of World Economy and International Relations, Institute of Sociological Studies et al.,

Mainly as part of the NAS. In 2001-2003 pp. There is some increase in funding for research, new

developments in the space industry and others.

3. TECHNOLOGY TRANSFER AND COMMERCIALIZATION IN UKRAINE

3.1 Current situation

In modern Ukrainian law the concept of "commercialization" is not exciting at all, but for, it is

used as the phrase "intellectual property to attract economic exchange." It is believed that the

commercialization of the technology is the final stage of transfer of technology. However, some

scientists believe that the commercialization of the technology is the same as the commercial

transfer or transfer should be seen as a way to implement commercialization.

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According Methodical recommendations on commercialization developments created as a

result of scientific and technical activity, approved by the State Committee of Ukraine for

Science, Innovation and Informatization of Ukraine as for 13 September, 2010,

commercialization development mechanism (technology) for enterprises and institutions of the

state form involves the following steps: 1) technological audit; 2) market research; 3) economic

audit; 4) obtaining protection; 5) promotion; 6) contract.

Below, there is a frame of commercialization of technologies in Ukraine:

The focus in the process of activation of commercialization is paid to the relationships and

information exchange between the participants in the innovation process. Therefore, in

Ukraine there is a need to create a network of agencies transfer and commercialization of

Methods of commercialization

technology

Transfer of rights to development(IPR)

Adding to the IP rights

to the authorized capital of the company

The transfer of rights

to use IPR

Under licensing

agreement

Under the contract

commercial concession (franchise)

Under the lease agreement

Transfer (assignment) property rights to IPR

Use in own production

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accession to international agreements and national patent data banks. Currently operating a

number of state agencies that have access to a significant amount of scientific, technical and

economic information including: Research Institute of Intellectual Property, the State Statistics

Committee, Ministry of Education, Science, Youth and Sports of Ukraine, Association of

Inventors and Innovators, DC Science, Innovation and Information, centers of scientific and

technical information, etc., whose function is to provide information and consulting services to

business entities on the possibilities of new technologies and attract the necessary resources

and participate in the implementation of innovative projects.

In the area of commercialization of research activities in developed countries, an interest on

the part of the various structures, networks. The main transfer networks include:

Enterprise European Network (EEN) - has been established as an integrated network of

support services business, based on the experience of two networks of 270 Euro Info

Centers (EIC) and 250 Innovation Relay Centers (IRC), whose work ended in December

2007. Program CIP - Competitiveness and Innovation Program - improving the

competitiveness of enterprises and innovation development (budget of 3.621 billion.

euro period - 2007-2013.)

Russian Technology Transfer Network RTTN - was established in 2002 initiator of the

Russian technology transfer network by the Ministry of industry, science and

technologies of the Russian Federation with the support of TACIS “Innovation centers

and science cities”

Ukrainian Technology Transfer Network - establishment of technology transfer centers

network UTTN, certification participants and partner network UTTN, organization of

international cooperation

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So, as a conclusion it noted that the commercialization of scientific and technical activities

(IPR), in terms of increased competition and accelerated NTP, is a major and important areas

of innovation for both companies that want to gain a competitive advantage in business, and

for inventors and scientists who want to bring to the final stage of his intellectual product and

get a reward.

3.2 Problems of commercialization

Analysis of the statistics shows that the high-tech sector Ukraine faces a number of problems.

State Agency for Science, Innovation and Information revealed problems high technology sector

and has concluded that despite the fact that Ukraine remained a major research institution,

science and technology and innovation does not play properly as a source of economic growth,

the pace of development and the structure of science, technology and innovation sphere do not

meet the growth of demand for advanced technologies; show low the susceptibility of the

business sector to innovate; occurring loss rate and reduce material and technical means in

science and technology and innovation.

The main reasons for these problems are:

1) reduction of state financing of R & D and innovation sector;

2) the ineffectiveness of the system of budget financing of Ukrainian science:

The system is not configured to obtain the final result of application;

3) legislative restrictions that complicate the financing of scientific areas:

Because of the complicated procedure of servicing the State Treasury special

accounts, including the activities funded by public research institutions and

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universities educational institutions, customers, including foreign, often refuse

cooperate with these institutions;

Government customers research and development work (R & D) in addition to a

competitive selection procedure have to use competitive bidding in the

implementation of public procurement

4) lack of economic entities of economic incentives to carry out technological modernization by

introducing new scientific and technical developments.

3.3 Recommendations

Having analysed the experience of developed countries, initially improve technology sector can

also recommend distinguish high-priority industries and focus on their development. It is

necessary to strengthen state support to priority high-tech industries and encourage their

funding. To do this on the level of government- improve the regulatory framework to facilitate

the development of investment in the industry. It is necessary to involve Ukrainian and foreign

scientists for the development of these industries, enable researchers to realize their works and

inventions in practice. That should enhance the interaction between scientists and

entrepreneurs. It is also a useful introduction tax incentive to companies that invest in the

creation of high technologies.

Initially, improve technology sector Ukraine is also an important condition for attracting foreign

investment in this sector. It is necessary to take measures to improve the investment

attractiveness of the sector.

Research in the field of high technologies should be focused on the development of domestic

production of high-tech products, state support of high technology sector and investment in the

sector (particularly foreign).

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3.4 Conclusion

So, today Ukraine has enough high scientific potential, a significant amount of the IPO, retains a

significant amount of high technology in the aviation and space industries, IT technologies,

shipbuilding, etc., but has significant problems with the commercialization of scientific and

technological development and transfer nearly all industries. To solve these problems requires

consolidation of the efforts of both public institutions, legislators and representatives of

business and production sector, universities and research organizations.

4. ANNEX 1 - INFORMATION ABOUT THE ACTORS WITHIN THE

SECTOR AND THE RATING OF THE INSTITUTES/UNIVERSITIES

List of TOP technical institutions:

# University Field City Website

1 Kharkiv National University of Radio

Electronics

Radar Technology

Kharkiv http://www.univer.kharkov.ua/en

2 National Aerospace University "Kharkiv Aviation Institute"

Space Technology

Kharkiv http://www.khai.edu/

3 Kiev Polytechnic Institute (KPI)

Multiple Kiev http://kpi.ua/

4 Kharkiv Polytechnic Institut

Multiple Kharkiv http://www.kpi.kharkov.ua/en/

5 Vinnytsia National Technical University

Multiple Vinnytsia http://vntu.edu.ua/

6 National Metallurgical

Academy of Ukraine Material Science Dnipropetrovsk http://nmetau.edu.ua/en

7 Poltava National Technical University

Multiple Poltava http://pntu.edu.ua/uk/

8 National Mining University of

Ukraine Mining Dnipropetrovsk http://www.nmu.org.ua/

9 Donetsk National Technical University

Multiple Donetsk http://donntu.org/

10 Lviv Polytechnic Multiple Lviv http://lp.edu.ua/

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List of private technical institutions:

1. KIBIT (Kiev Institute of Business and Technology)

Website: http://kibit.edu.ua/ City: Kiev

2. ITSU (Academician Yuriy Bugay International Scientific and Technical University)

Website: http://www.istu.edu.ua/en/ City: Kiev

Other institutions by industry:

Space Technology City Website

Kiev Polytechnic Institute (KPI) Kiev http://kpi.ua/en/node/7242

Oles Honchar Dnipropetrovsk National University Dnipropetrovsk http://www.dnu.dp.ua/

Zhytomyrskyi viiskovyi instytut im. S. P. Korolova Zhytomyr http://zvir.zt.ua/

Zaporizhzhya National Technical University Zaporizhzhya http://www.zntu.edu.ua/

Oil & Gas Technology

Zhytomyr State Technological University Zhytomyr https://ztu.edu.ua/

Ivano-Frankivsk National Technical University of Oil and Gas (IFNTUOG) Ivano-Frankivsk http://nung.edu.ua/

National Mining University (NSU) Dnepropetrovsk http://www.nmu.org.ua/

Institute of Refrigeration, and cryotechnology Ecoenergy (IHKE) Odessa http://onaft.od.ua/Pages_cat_44.html

Material Science

MRC Kiev http://mrc.org.ua/

Institut for Problems of Material Sciences NAS of Ukraine Kiev http://www.materials.kiev.ua/

Medical technology

Kyiv Medical University UANM Kiev http://www.kmu-kyiv.com/

Kyiv International University (KIU) Kiev http://www.kymu.edu.ua/language-english/

International Humanitarian University Odessa http://www.odessa-education.com/en/

Applied Mathematics

Taras Shevchenko National University of Kyiv Kiev http://www.univ.kiev.ua/en/

Ivan Franko National University of Lviv Lviv http://www.lnu.edu.ua/

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National University of Kyiv-Mohyla Academy Kiev http://www.ukma.edu.ua/

Radar Technology

none

Cryptography

National University of Kyiv-Mohyla Academy Kiev http://www.ukma.edu.ua/

Kiev Polytechnic Institute (KPI) Kiev http://kpi.ua/en/node/7242

Kharkiv National University of Internal Affairs Kharkiv http://univd.edu.ua/

Electronics

Kyiv National University of Construction and ArchitectureKyiv Kiev http://www.knuba.edu.ua/

Ukrainian State Chemical Technology University Kiev http://udhtu.com.ua/

Chemistry

Ukrainian State Chemical Technology University Kiev http://udhtu.com.ua/

National Pedagogical Dragomanov University Kiev

http://www.npu.edu.ua/index.php?lang=en

5. ANNEX 2 - LIST OF SUCCESS STORIES IN COMMERCIALIZATION OF

TECHNOLOGY

1. Preply (link) - an online search service of a foreign language tutors. The site launched in April

2013 since then, he has undergone several milestones. In July, the team went on acceleration in

the Berlin branch of the incubator TechStars and received a $ 120,000 investments.

2. Kwambio (link) initially is an online platform on which designers can upload their 3D-

projects, and users - to change their appearance to your taste and print on their devices.

However, in February he changed the model and became an online store: Now Kwambio offering

designer goods, printed the 3D-printer-made ceramics and metals, including precious.

3. LifeTracker.io (link) - PDNA is the first project of the company, which is working to create a

symbiotic artificial intelligence. While this is a mobile app for iOS and Android, but in the future

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product plan to combine with all possible interfaces, including - the internet of things. In January

2016 the project attracted investment company Digital Future of EUR 200 000.

4. Wishround (link) - online service fulfilment of desires, which launched two ex-employee

Terrasoft. The site can fill out a form and create any wish and start collecting money on it. The

service already has many large clients in Ukraine: Citrus, LeBoutique, SuperDeal, Repka.ua. He

also recently became a form of payment at online stores.

5. Sale Looksery (link) - an innovative platform that allows you to edit photos and video selfie

in real time, for $ 150 million was the main event of the 2015 Uanete. Now Looksery as a

separate project does not exist, the application is long gone in the App Store, it became part of

the project Snapchat Lenses.

6. Competera (link)- it rial-time service that helps online merchants daily set prices

corresponding to the market realities. Start-up is focused on the global market with clients from

the CIS, England, America and even Australia.

7. Ecoisme(link) - a system of home energy management, and the most "prominent" in the

startup UA internet. The children regularly receive awards at various exhibitions abroad. And

in March of this year, hit the accelerator Ecoisme Richard Branson and attracted investments

from two business angels - Nick Belogorskogo and Sergey Povzner.

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6. REFERENCES

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Encyclopedia.com. (2016). Ukraine Facts, information, pictures | Encyclopedia.com

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Europa.eu. (2015). European Commission - PRESS RELEASES - Press release - Ukraine

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The Good Country. (2016). The Good Country - Overall Rankings. [online] Available at:

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World Bank. (2016). Ukraine: Reforms Helped to Stabilize Economy, but Continued and

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yak-ukrayina-finansuye-naukovi-doslidzhennya [Accessed 15 Apr. 2016].

Яровая, М. (2015). Как Upwork развивает украинский рынок IT и фриланса и кого

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2016].