“Economy of knowledge and transfer of innovations: Ukraine’s progress through the lens of European development trends”

In advanced economies, the acceleration of scientific and technological progress, the introduction of innovations are connected with the opportunities for developing the knowledge economy, commercialization of technologies and innovation transfer networks. The current stage of scientific and technical progress takes place in conditions of dynamic global competition and at the same time requires cooperation and collaboration. This paper aims to determine the dependence of economic development on indicators characterizing the potential of a country’s knowledge economy and transfer of innovations. The study focuses on finding ways to assess the impact of the potential of the country’s scientific and educational activities on innovative development using the characteristics of the “business-education-science” system in the field of innovation transfer. The methodological research tools are the abstract-logical method and correlation-regression analysis, which allowed establishing relevant links between the indicators of the development of education, science and the economy in the context of the knowledge economy and the transfer of innovations for Ukraine and European countries in the period 2016–2021. It was found that in many countries of the “new” Europe (Bulgaria, Greece, Lithuania, Latvia, Estonia, Slovakia, Slovenia, Cyprus, Malta, Portugal), as well as in Ukraine, the trend of independence of GDP growth from indicators of the development of science and education is maintained. At the same time, the countries of “old” Europe maintain their innovative progress at a high level, investing in science-intensive activities, infrastructure and the R&D sector. The results can be used to improve the efficiency of innovation transfer in Ukraine, for which the paper provides relevant recommendations.


INTRODUCTION
Despite some progress in achieving Goals 7 and 8 of the UN Millennium Declaration, which are a reference point for transformations for sustainable development at the global level (more than 500 international agreements and conventions have been developed, standards for the management of innovative projects, environmental audit schemes, etc. have been developed), economic mechanisms for creating an effective transfer of innovations, their scaling, sharing the best practices of their implementation, and stimulating the diffusion of innovations remain imperfect.
The link between sustainable development, national security and the quality of cooperation between the scientific and educational community and business is enshrined in the UN Millennium Declaration.The most common form of innovation scaling through the cooper-ation in the field of education, science and business are technopolises and science (technology) parks, most of which are concentrated in the USA (140 parks), Finland (17 parks), China (53 national parks and more than 50 provincial parks); but to date, they do not fully ensure the transmission and quality of transfer mechanisms.In particular, in Ukraine, their functioning and effectiveness is restrained due to unresolved issues of their institutional and resource support (UN, 2021; Ilchuk, 2018).
Ukraine ranks 60th out of 141 in terms of the level of innovative activity and 47th out of 160 in terms of achieving the Sustainable Development Goals, which is due to the lack of effective mechanisms for cooperation between business and the academic environment, the diffusion of ideas into the real sector of the economy, and institutional support for innovation transfer networks (The World Bank, 2021).This inhibits the processes of qualitative transformation of the country's economy, creates obstacles for the scientific and educational community to perform its constructive functions.The gap between the innovative development of Ukraine and the developed countries continues to increase, which necessitates additional research.

LITERATURE REVIEW
The main vector of economic development should be the movement towards the knowledge economy, which effectively uses innovations for the development of the economy with most industries in this case becoming "science-intensive".It is wellknown that in the developed countries, approximately 70% of GDP growth is ensured due to new knowledge.It is created to a greater extent due to the development of business, which in European countries operates in various industries and spheres of production, including traditional ones, however, the main part of risk capital investments is related to high technologies.
Information technologies, computerized systems and high production technologies are the basic systems of the knowledge economy (Tarasov et al., 2020), which is formed in the conditions of the most effective mechanism for the formation of cooperation between business, educational and scientific institutions.This contributes to the creation of a fundamentally new landscape for the generalization and consolidation of innovation transfer models, in the process of which the emergent property of each component of the "business-education-science" system is manifested.
With imperfect management in the field of competition between the educational, scientific and business environment for breakthrough ideas and developments, natural barriers to the transfer of innovations are created, which strengthen the existing "innovation gaps" at the macro level, which slows down the transition to the knowledge economy.An effective economy involves the creation of new ideas, their introduction into production not only for the purpose of making a profit, but also to promote progressive social development.and others).Scientists from the developed countries, in particular, from the USA, Great Britain, Germany, Italy, Spain, the Netherlands, etc., have the most significant scientific results on the researched issues.However, it has been established that currently there is no single scientific vision that would make it possible to scientifically justify the potential of the "business-education-science" system in their mutual goal-setting for the common goal -ensuring economic security and creating an innovative landscape in Europe.The analysis of publications of the last period shows that they are more focused on the external effects and challenges of the innovation transfer process and do not take into account the international aspects of convergent internally variable mechanisms between countries (Yun & Liu, 2019;Lytras et al., 2019;Aden, 2021).Other works explore certain issues in the field of innovation transfer, in particular, the commercialization of academic research (Jones & de Zubielqui, 2017) (Bouncken et al., 2018), which is a relatively new trend of scientific research.The authors believe that such an approach has economic and political advantages that makes it possible to benefit from the exchange within the framework of international economic relations.
At the same time, it is believed that globalization increases the unevenness of the socio-economic development of national economies.This regularity manifests itself at all levels, in particular, in the process of formation of the knowledge economy.Hence the importance and priority of developing a national strategy for the development of the knowledge economy and the effective transfer of innovations.More than 10 years ago, Meyer (2006) noted the main problems of Ukraine's innovation model and the consequences of an ill-conceived innovation policy, pointed out the need to accelerate the implementation of measures related to the scientific and technical development of the economy, strengthening its scientific potential.However, in the conditions of the political crisis, issues related to the formation and development of the knowledge economy in Ukraine have not been sufficiently covered in the literature.In Ukraine, the knowledge economy has an opportunity to adapt to new market conditions and the international situation.These possibilities are due primarily to the high educational potential of Ukraine's population, the possibilities of the innovation process and sufficiently developed material and technical base of the national innovation system.At the same time, there are objective factors restraining the advancement of Ukraine in the knowledge economy, namely, insufficiently perfect legislative framework for innovative activity, low efficiency of state management and regulation of the economy and underdevelopment of venture business.The legislative framework of Ukraine regulates innovative activities regarding the determination of scientific, technological and innovative priorities, financial support, rules for the operation of technoparks and technology transfer, but they are partially effective.
Currently, the gap between innovative development of Ukraine and developed countries continues to increase.According to the data (The World Bank, 2021), Ukraine has practically not changed its position in the ranking of the global innovation index over the past five years.Experts indicated the limited access to finance as the most problematic factor for implementing innovations and conducting business in Ukraine these years (NDIIV, 2021).The authors note that the indicators for the development of the innovation field testify to the negative influence of the management sphere on the development of business and attraction of investments.At the same time, the decline in the quality of provision of educational services and the level of scientific development, the insignificant use of innovative developments at enterprises, the insecurity of intellectual property rights, the migration of qualified personnel to the developed countries make progress in Ukraine impossible (NDIIV, 2021).Therefore, it is necessary not only to develop science-intensive production, but also to demonstrate increased activity in the preservation and multiplication of scientific and technical, innovative and human potentials.This conclusion is corroborated by the information provided in the Global Innovation Index Monitoring Report published by the World Intellectual Property Organization (WIPO, 2021).The Global Innovation Index (GII) is calculated by the analytical center of the Lausanne Business School INSEAD, Switzerland.The calculation of the index is due to the separation of groups of indicators: the results of innovations (Innovation Output) -contains the results of creative activity, the development of technologies and economic knowledge, and the index "innovation resources" (Innovation Input Index).This sub-index consists of five sub-indices: Institutions; Human potential; ICT and general infrastructure; Development of markets; Business development.
Based on the analysis of literary sources, it was established that this index belongs to the most wellknown and widely accepted in the world theory and practice of measurement and comparative analysis of innovative development of countries.
Ukraine maintains its position, namely 49th place in the world and 32nd place among 39 European countries in 2021.Statistically significant data for the ranking of Ukraine in the GII 2021 are positioned between 43rd and 53rd places.Along with this, in Ukraine, good indicators remain in the field of knowledge and technology (33rd place), and the most difficult situation is in infrastructure (94th place).A very important index -"Human Capital and Research" -after which Ukraine ranks 44th (WIPO, 2021).
According to the 2021 edition of the GII, an interesting situation emerges from the example of Switzerland.This country maintains its leadership positions for the 11th year in a row.Sweden and the United States are also in the lead.The other EU member states in the top ten are the Netherlands (6th), Finland (7th), Denmark (9th) and Germany (10th).The lowest ranked EU Member States are Romania (48th), Greece (47th), and Croatia (42nd) (WIPO, 2021).Table 1 shows the progress of the GII for Ukraine and the top three economies in Europe.
Switzerland also leads in terms of innovation efficiency (1st in the world).This means that the mechanisms for converting innovation costs into innovation outcomes in Switzerland are among the most efficient economies in the world in converting innovation costs into innovation outcomes (WIPO, 2021).The analysis of the literature shows that new ideas and innovations are of deci-sive importance for ensuring economic growth in the future as evidenced by the efforts of the developed countries to maintain the level of investment in innovative activities.According to the data (WIPO, 2021), the volume of investment in innovation reached a historical maximum during this period.Thus, the growth of state budget investments continued in the countries with the highest expenditures on science.In 2020, companies that are the leaders in spending on science and research increased their total spending in this area by approximately 10% (according to the survey, 60% of science-intensive companies).2020 saw a 5,8% increase in the number of venture capital deals, which exceeded the average annual growth rate of the last 10 years (WIPO, 2021).In 2020, the number of scientific publications in the world increased by 7,6%.The indicators of 2021 suggest that venture activity will be even more dynamic this year.In order to strengthen their innovation potential under the conditions of global competition, companies seek to expand cooperation with other enterprises, universities and state scientific organizations practicing the model of open innovation.Finding partners and managing various cooperative relationships become challenges, especially from the point of view of the distribution of intellectual property rights.In recent years, discussions about the role and functions of actors interacting according to the "triple helix" model, which is sometimes also called the "knowledge triangle" (knowledge triangle), have intensified.Within the framework of this approach, special ).An important aspect is also the factor of belonging to the global sector of companies, which, unlike firms focused on the domestic market, maintain strong ties with both private and public scientific organizations (Piątkowski, 2020).
We believe that companies that find it difficult to adapt to changing market conditions and crisis phenomena have increased survival risks (Govender & Hassen-Bootha, 2022; Juhász et al., 2022).OECD documents (OECD, 2013) cover the effect of intersectoral "flow" of knowledge and innovation, which stimulates the search for new forms of innovative activity.Therefore, it can be concluded that the scientific activity of higher educational institutions is one of the important factors in the development of innovative processes and can be taken into account in further calculations.In the context of the investigated issues, it is important to note that an effective focus on the resulting indicators of innovative activity stimulates the transfer of innovations.Innovations are spread through various channels such as mobility of academic staff, scientific publications, new contracts with business, licensing of university inventions.However, recently, the attention of experts in European countries has focused primarily on stimulating the transfer of knowledge and innovation processes through publications, patenting, licensing of inventions and support of academic start-ups.Recently, there has been an increased interest in public-private partnerships, "open" research and "entrepreneurial" channels, including student start-ups and related funding as well as mobility support schemes (Ilchuk, 2018;Kézai & Szombathelyi, 2021).In addition to budgetary support, many universities and state scientific organizations provide startups with their investment schemes with the involvement of their own funds.There are 73 such funds in Europe, including Chalmers Innovation Seed Fund, Gemma Frisius Fonds KU Leuven.Among other things, they provide business and consulting services, provide production facilities in incubators, conduct marketing research and organize professional training.
It is necessary to determine the factors that influence the formation of the scientific and technical, innovative and economic potential of Ukraine.Taking this into account, the purpose of this study is to establish the degree of density of connections between the indicators that form the potential of the knowledge economy for the transfer of innovations in the context of the country's innovative development.

METHODS
It is proposed to determine the presence and the degree of closeness of relations between indicators affecting the transfer of innovations in the field of knowledge economy taking into account their dynamics for 2016-2021 (Table 1  physics, biology, chemistry, mathematics, clinical medicine, biomedical research, engineering and technology, Earth science and space sciences.Regression analysis makes it possible to obtain equations for the GDP indicator, taking into account the influence of the specified indicators.For more detailed analysis, a regression analysis of the influence of independent variables on the dependent variable is shown.Table 2 shows mathematical expressions of the model of dependence of the countries' GDP on four groups of factors based on the results of analysis for the countries of "old" and "new" Europe and Ukraine.

RESULTS
A comparative analysis of the indicators of Ukraine and European countries shows that in Ukraine there is a significant impact of the studied indicators on GDP.Correlation-regression analysis solves two main tasks: determining, with the help of a regression equation, the analytical form of the relationship between the effective and factor indicators and establishing the level of density of the relationship between them.
Detailed analysis of output data allows analyzing the obtained mathematical expressions of the model of dependence of the countries' GDP on certain factors (Table 3).

DISCUSSION
As can be seen from Table 3, Bulgaria, Lithuania, Latvia, Estonia, Slovakia, Slovenia, Cyprus, Malta, Greece and Portugal, and only two countries of "old" Europe (Finland and Luxembourg) have the lowest intragroup variability, which indicates the independence of their GDP from factors such as the export of high-tech goods, research and development costs of countries, the number of researchers in the R&D sector, the number of articles in scientific and technical journals.In all other countries, on the contrary, high intragroup variability, especially in the countries of "old" Europe is observed.
Therefore, the gap between innovative development of Ukraine and developed countries continues to increase.Therefore, it is necessary to be more active in the preservation and multiplication of scientific and technical, innovative and human potentials.

CONCLUSIONS
This study is devoted to establish the impact of the knowledge economy for innovative development on the economic progress of Europe.Attention is paid to the transfer of innovations as a tool for managing innovative business activities and networks in innovative activities at the international level.The study focuses on the importance of cooperation between the educational and scientific and business sectors for the effectiveness of the process of creating new technologies and their commercialization, as well as the issues of investing in the resource component of the knowledge economy.Therefore, the study focuses on four factors and their impact on GDP: the export of high-tech goods, the impact on the development of the country, the number of achievements in the R&D sector, the quantity of articles in scientific and technical journals.
Thus, while this study does not demonstrate new methods for estimating the impact of innovation, it helps to focus on the factors of innovation development that capture the performance of academia using statistically significant variances.It has been concluded that the countries of old Europe are carefully building a policy of innovation, investing financial resources in science-intensive areas and educational and scientific environment for the qualitative development of human resources.This allows to maintain a leading position within the geographic affiliation.According to calculations, it was revealed that the economies of 10 countries of new Europe (Bulgaria, Lithuania, Latvia, Estonia, Slovakia, Slovenia, Cyprus, Malta, Greece, Portugal) and two countries of old Europe (Finland and Luxembourg) do not depend on the selected factors, which is due to the structure of their industrial sphere.The Ukrainian economy, on the contrary, is dependent on the number of scientists, the publication of articles and the export of high-tech products and the financing of science, which indicates the need to improve the system for the transfer of innovations and create potential to develop innovative capacity.
Further research is related to the development of methodological approaches to assessing the probability of overcoming the gaps in the development of the economy in comparison with the developed countries of Europe.

Table 2 .
Mathematical models of GDP dependence of Ukraine and European countries on four groups of factors Source: Babak (2022).

Table 3 .
Results of modeling innovative development in Ukraine and European countries