Successful Start-ups and Businesses in Emerging Economies
Edited by Ruta Aidis and Friederike Welter
Chapter 7: Integrating Cutting-edge Chemical Knowledge and Entrepreneurial Drive: The Case of New Substances in Ukraine
7. Integrating cutting-edge chemical knowledge and entrepreneurial drive: the case of New Substances in Ukraine Nina Isakova INTRODUCTION During the 1990s, Ukraine underwent signiﬁcant political, economic, social and cultural change caused by the collapse of the socialist bloc and the former Soviet system. In the transition to a market economy, which was one of the most important objectives of transformation, the biggest challenge was developing an eﬃcient private business sector and innovative capacity. Ukraine has no history of private enterprise and this sector of the economy had to be developed from scratch. The overall crisis in politics and the economy as well as a lack of adequate state support policies in Ukraine added to the diﬃculties in the formation of a small and medium-sized enterprises (SME) sector, which was developing not due to but inspite of government policies. The national innovation system of Soviet Ukraine was not conducive to technology transfer and required radical transformation. The Ukrainian scientiﬁc community constituted part of the former Soviet Union science system; it was highly defence-oriented and restricted from international cooperation (Egorov 1995). The following assessment given by Pavitt (1997) holds true for Ukraine. According to this Western expert, ‘the transformation of national systems of science and technology in the formerly centrally planned economies of Central and Eastern Europe has been no diﬀerent from transformation in other spheres – slow, messy, disappointing, and much inﬂuenced by country-speciﬁc factors. More speciﬁcally radical changes in institutions and in the...
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