European Journal of Management Issues

163-169

Authors: Alteen, C., & Wohlgemuth, V.

Actuality of the study: Mutual funds are a favourite investment product among many investors. They provide a simple means of diversification, especially for those with smaller amounts of capital, and the popularity of mutual funds has increased with the success of the marketing efforts behind them. Purpose: This study evaluates the performance of actively managed and index mutual funds within the Canadian equities market. Findings: As index investing has increased in popularity, and other markets have become more connected and open, there is a need for research on equity mutual funds in countries outside the US. Originality / Value: The majority of previous research on index funds and actively managed mutual funds is focused on the US market and related indexes such as the S&P 500. Practical implications: This study suggests that, on average, active funds in Canada fail to beat their benchmarks net (but not gross) of the common fee or management expense ratio. Surprisingly, this research finds no positive relationship between higher fees and better gross performance. Actively managed funds also have poorer performance over the long term. This study finds that investors would be better off purchasing low cost index funds as they provide a more secure return. Future research: This study endorses research on other markets with inclusion of additional variables in order to explain gross performance and secure returns.

177-184

Authors: Boiarynova, К.

Management environment system is a comprehensive and coordinated component in the provision of economic functionality of a machine-building enterprise, which predetermines the need to examine it. A difference in the level of innovativeness of innovation-oriented enterprises in machine engineering that operate within the framework of technological stages IV and V requires a substantiation of recommended values of indicators of the dynamics of executing economic functions by management environment system for each group separately. The goal of present work is to substantiate the recommended values of indicators of the dynamics of executing economic functions by management environment system as a result of comparing machine building enterprises at technological stages IV and V in terms of its component environments and phases of innovation-oriented development within an organization. We compared a range of recommended (indicative) values of indicators of the dynamics by the relevant indicators of effectiveness of executing economic functions by the component environments of management environment system at the machine building enterprises of technological stages IV and V in terms of performing dynamic economic functions: enhancing capability in comprehensive staff retention, increasing financial motivation and safety for employees, growth in profitability by increasing the potential of employees’ experience, development of innovative potential by developing the intellectual one; increasing the provision with reliable partners, increasing savings on costs, increasing the economic substantiation of interaction in ecosystem, development of consumer interest towards innovation; increasing the supply of active main assets for core activity, renewal of technical and technological states, actively increasing the share of intellectual property in assets, increasing active innovation. The novelty of present research is in the identification of differences in the range of values for indicators of the dynamics by economic indicators of effectiveness in the functioning of management environment system for the enterprises that operate within the framework of technological stages IV and V, and the substantiation of their drivers. A practical result of the study is a deepened analysis of economic indicators of effectiveness in the execution of economic functions by management environment system with the substantiation of their comparison by the machine building enterprises that operate within the framework of technological stages IV and V. A direction for further research is the substantiation of achieving indicators of the dynamics of execution of economic functions for financial-investment environment system at a machine building enterprise.

194-200

Authors: Ivanov, L.

The article focuses on the role of cultural diversity in consumer research. The topic was approached in a non-empirical manner utilizing relevant literature published in the period 2011-2015 in A+ to C ranked journals. Four themes emerged and were integrated into the «4Cs» research taxonomy: Consumer differences, Consumption practices, Complexity in research, and Communication advice for practitioners. Two distinctive streams of research on the topic were identified. The first one concentrates on biculturals by birth or by migration. The second one investigates attitudes towards cultural diversity through identity formation. Important findings from the first stream are that cultural competence impacts the allocation of decision making roles, biculturals are more willing to consume diverse products, and biculturals react positively toward both individually or interpersonally focused advertising appeals. The second stream, related to attitudes towards cultural diversity, identifies that cultural identity impacts consumer behavior. Cultural identity can be approached as national vs. global identity, or as local vs. global identity, or from a position of the global citizenship.

207-214

Authors: Katan, L., Vasylieva, N., & Vinichenko, I.

With the accelerated globalization processes, the strength of connection between agricultural production and rural territories is growing; the ratio is changing in the structure of institutions of influence towards financial provision of balanced economic, social and environmental development of this complex systemic formation. Despite the growing interest in research papers to the issues of financing agriculture, an analysis of institutional foundations for the provision of financing the sustainable development, which take into account the multifaceted nature of institutional mechanisms of its implementation in the agricultural sector, is limited. The aim of present work is to substantiate theoretical-methodological and applied principles of institutional provision of financing the sustainable development of agrarian sector in Ukraine. We defined key approaches to the formation of institutional provision of financing the sustainable development of agrarian sector. We believe that the institutional provision of financing the sustainable development of agrarian sector is a set of socio-economic, organizational and legislative measures of state authorities and entities (collectively, public and private institutions) in the field of financial relations that form necessary legal, organizational and economic conditions for effective engagement, accumulation and application of financial resources in order to achieve a planned dynamic social-ecological-economic effect. The components of institutional provision of financing the sustainable development of agrarian sector are presented. We analyzed the status of agricultural sector in Ukraine over 2000-2013 and evaluated the tightness of relationship between the volumes of investments and the level of development of national economy (GDP) and agricultural sector (agriculture DP). It was revealed that the growth of investment in fixed capital by UAH 1 million contributed to the GDP growth of national economy in Ukraine by UAH 60.9 million. At the same time, an increase in investments in the main capital of agriculture by UAH 1 million predetermined the increase in the gross production of agriculture by UAH 7.9 million. The sources of financing agricultural sector that are closely related to the development of agricultural sector (correlation coefficient is equal to 0.94) include foreign direct investments, but they do not exert significant impact on the growth of gross agricultural product (growth by USD 1 million stimulated increase by UAH 0.14 million). In the agricultural sector, investment activities of both domestic and foreign investors remain secondary; the amount of invested resources does not meet required volumes. We proposed to create an innovative-oriented cluster of agricultural sector, to improve credit mechanism and the mechanism of state regulation in the context of sustainable development. The value of present research consists in determining the tightness of connection between the amounts of investment provision and the level of development of national economy (GDP) and agricultural sector (agriculture DP). Practical use of recommendations, proposed in present work, on updating the draft Concept of the "State program for sustainable rural development in Ukraine through 2025" will make it possible to optimize financial mechanism of state support for sustainable development of agrarian sector in Ukraine. A promising direction of research is the study and assessment of the possibility to apply foreign experience in the optimization of components of institutional provision for financing the sustainable development of agrarian sector in Ukraine.

222-228

Authors: Kucherenko, A.

One of the most important decisions that entrepreneurs and investors adopt in the process of their activities to obtain a positive micro- and macroeconomic result is the placement of monetary funds into ranked financial instruments. Such a decision requires understanding of investment features and risks for all classes of assets. A special attention should be paid to derivatives as their use, despite high effectiveness, is not commonly practiced in Ukraine. The aim of present work is a theoretical study of financial and organizational prerequisites for hedging, particularly, to identify obstacles to the introduction of this technique, including when working with derivatives, in risk management, formation of conceptual approaches to assess and overcome obstacles in the effective application of hedging strategy. Main problems in the application of hedging technique for the work with derivatives at domestic enterprises and financial markets of Ukraine are characterized. We substantiated a hedging technique as an alternative, by efficiency, method in risk management. The most common financial techniques are characterized, which include natural and synthetic types of hedging. A structure of the financial market is revealed, and financial negotiable instruments – objects of application of hedging technique – are classified. A system of participants in the Ukrainian stock market is presented. We described the essence of technique and certain methods of hedging. Micro-and macroeconomic obstacles are identified when applying hedging relative to derivatives: unsubstantiated number of exchanges, weakly-developed legal-normative base, insufficient warrants of property rights to foreign investors, lack of actual delivery of the base asset, low investment attractiveness of Ukraine, lack of a unified regulator for financial markets, absence of hedgers, small volumes of transactions for all futures, low level of financial literacy among the population. The scientific novelty of present research is in outlining the aspects of practical implementation of hedging technique into risk management in dealing with derivatives. Results of the study might be used by legal entities when managing risks in operational and financial activities. Further research into the scientific problem specified may be directed to regulate drivers of profitable business activity by innovative and progressive methods and techniques.

237-243

Authors: Onyshchenko, S.

Globalization has a dual effect on the world financial system, contributing to its development and simultaneous occurrence of potential threats to financial security of states. Despite their rapid escalation to the real ones, most countries in the world do not perceive these threats as serious. Enhancement of the latter necessitates studying the problems of providing for the budget safety under conditions of world globalization, redefining directions when forming effective budgetary system in terms of secure development, strengthening the fiscal security of state. It is necessary to explore in detail the drivers that influence the level of budget safety and its interrelations with other components of economic security. The aim of present work is to examine relationships of budget safety taking into account effect of the process of financial globalization and to assess its level by the principles of retrospective analysis. We proposed our own interpretation of the concept of budget safety as the level of capability of a budgetary system to ensure solvency and financial stability of the state, effective use of budget funds taking into account strategic development priorities of budgetary relations and potential capability to resist and predict the threats of internal and external origin. Results of analysis of economic security indicate the highest rate of decline in financial security in 2015 by 14.1 percentage points to the level of 36.7 % among all the components of economic security. It was established that this situation is due to a decrease in revenues from basic budget-forming taxes with strengthening fiscal pressure on the economy, a sharp devaluation of the national currency, a significant growth of the state and the state-guaranteed debt with increased risk of default, illiquidity and insolvency of financial institutions, shrinking resource base of banks, problems with their capitalization. This determined critical and close to critical state of almost all the components of financial security. We analyzed current status of indicators in budget security. The correlation links are assessed between the integral level of budget safety and other components of economic security. The factors and interrelations of impact on the level of budget safety were defined. Direct dependence and the largest impact on the poor level of fiscal security were caused by absolutely dangerous levels of currency and debt security. We substantiated the need to improve a methodological approach to determining the level of safety with regard to the globalization processes and drivers of exogenous and endogenous origin, which reflect the share of the shadow economy, debt and fiscal burden on the budget, inflation processes and other indicators, key to providing revenues to the budget. The scientific novelty of present research is in the following: based on the results of analytical assessment of interrelations in budget security, we defined methods, means and tools for state regulation over risks and threats, we performed a strategic monitoring, prediction and implementation of measures of preventive nature to ensure economic security. A practical significance of the results obtained is the verification of provisions to improve scientific and methodological principles for the assessment of level of budget security of the state taking into account the budget safety interrelations with other components of economic security. Results have practical value to the bodies of state administration when compiling

250-257

Authors: Samoilenko, A.

Under conditions of global intellectualization of technology, information–communication and transport infrastructures are closely connected to the utilization of intellectual and creative capabilities of human resources. It is an appropriate and relevant question to address the optimization in regulating the international movement of human resources and to define economic instruments to stimulate the development of intellectual resource of Ukraine. The goal of present work is a theoretical substantiation of recommendations concerning the regulation of international movement of human resources in Ukraine and economic instruments for the development of intellectual resource of the state under conditions of global intellectualization. In the research, we applied general scientific and special research methods: induction, deduction, method of imaginary experiment and substantiation, theoretical generalization. A conclusion was drawn on that the strategic direction of economic policy in the development of intellectual resource in Ukraine should be a state-led regulation of international movement of human resources in all their forms, namely, migration, tourism, transit-professional relocations and virtual international movement. Development of intellectual resources of Ukraine depends on economic instruments, among which we consider it appropriate to highlight: state monitoring over the processes in international movement, intellectual property protection, motivation of development of domestic human resources, the intensification of international cooperation, promotion of intellectual immigration and re-emigration. The scientific novelty of present research is the substantiation of recommendations related to the regulation of international movement of human resources and the determination of basic tools for development of intellectual resource in Ukraine. A practical value of the research consists in the fact that the results obtained might be used by state bodies to improve effectiveness of the legal base and protection of intellectual resources of Ukraine at the national and local levels. In future, further research can be directed towards the conceptualization of state economic policy in the regulation of international movement of human resources of Ukraine; to study experience of the world leading countries on retaining intellectual resource.

280-286

Authors: Zinchenko, O., & Malyshko, U.

Under modern conditions of business operations, an analysis of environment of an enterprise is getting more and more important. This is an initial phase in the formation of strategy of the enterprise, since it provides for the appropriate basis to define the mission and goals of its functioning. Existing methods of analysis, however, are more focused on the factors in macro environment; as for the microenvironment, it is examined comprehensively, not accentuating its exceptional role in the process of management decision-making. This predetermines the need to develop methodologies and approaches to diagnosing the environment of business, their approbation under conditions of a particular enterprise. The aim of present work is to develop, based on the methods of SWOT and PEST analysis, a new technique, which will make it possible to assess the impact of factors in microenvironment on the results of current and future activities of an enterprise in the pharmacy industry. We developed a new technique for CLCP-analysis, by using which one it is possible to assess the impact of factors in microenvironment on the results of current and future activity of an enterprise. To conduct a new analysis, four groups of factors in microenvironment were isolated, which in case of their change are capable of affecting the activity of an enterprise. These are factors of influence from consumers, legislation, competitors and providers. An algorithm for conducting the CLCP-analysis is proposed, which includes five stages: identification of factors that may affect activity of the company; analysis of significance and a degree of influence of each factor; assessment of probability in the changes of factors; evaluation of real significance of the factor; compiling a consolidated table of CLCP-analysis. We devised a tabular form for the representation of information related to CLCP-analysis. This technique was verified under conditions of an establishment in the pharmacy industry. We found factors that may affect the company the most in the event of changes – this is the occurrence of new consumer requirements to the product range, increased state taxes, the use of new technologies in service sector by competitors and failure to supply the goods on time by suppliers. A ranking of these factors was conducted based on the method of expert estimations. We proposed actions for the enterprise to minimize threats and utilize possibilities that may occur due to changes in microenvironment. In contrast to others, method proposed by Authors will make it possible to assess in full and comprehensively the factors in microenvironment and refine the processes that take place in it. It might be used for business diagnosis when developing competitive strategy of the enterprise. Important scientific tasks of both theoretical and applied nature in future implementation of the given methodology is the cost assessment of influence of each factor in the microenvironment of a pharmaceutical company, development of mechanisms to minimize the risks associated with changes in microenvironment, analysis of interrelation between the micro- and micro-environment. Their fulfillment will contribute to the development of strategic management and implementation of its approaches in the practice of enterprises in the pharmaceutical industry.

3-14

Authors: Falkiewicz, S., Wohlgemuth, V., & Bogodistov, Y.

The article is a part of a larger analysis of the scientific literature on the subject of entrepreneurship and related trends of scientific research. The main purpose of writing this article is a review of international scientific literature on entrepreneurship with emphasis on the aspects of an individual and the society and resource management. For a comprehensive review, 100 topical research papers were selected in the following categories: individual, economics, theories, building relations, mistakes, opportunities, internal entrepreneurship, strategy, resource management and family enterprises. The article focuses on the actual definition of entrepreneurship and its aspects, namely "individual and society" and "resource management". The analyzed subjects provide material for future research. Suggestions on interesting topics for further scientific research are attached. It is proved that a common concept of entrepreneurship, “an entrepreneur is born, not made”, is false. Despite the fact that the term "entrepreneur" has existed for more than 200 years now, a radical development of the concept has become obvious of late. Entrepreneurship today occupies a central position in the economy, and every economy grows thanks to the small and medium enterprises and their innovativeness. Special attention is paid to the modern interpretation of entrepreneurship in scientific journals. A review of current scientific trends through the lens of the concepts of "individual and society" and "resource management" is proposed.

23-33

Authors: Bеlopolskyi, M., & Kuzmina, O.

The purpose of writing the article is presenting the results of the study of theoretical and methodological aspects of the development of the stages of strategy of sustainable development of an industrial enterprise and determining main directions of this development. The research was performed using the methods of synthesis and analysis, deduction and induction. The essence of the concept of strategy of sustainable development of an enterprise and its components was revealed. The strategy for sustainable development is proposed to be considered in two aspects: economic and social. It was established that an enterprise enters new levels of competitive management and the operational effect of synergy occurs. It was proven that the formation of development of an enterprise should be based on synergetic harmony with the terms and objectives of the enterprise as a whole and with each functional unit. Main stages of formation and implementation of the strategy of sustainable development of an industrial enterprise were characterized. The paper considered the specificity of defining strategic position, formulating an enterprise development strategy, identifying opportunities and peculiarities of application of an express test for the actual financial state, allowing detecting signs of imbalance at the enterprise without significant calculations for the diagnosis of the actual financial status. In order to ensure prompt and unbiased testing of the actual financial state, it is advisable to restore the practice of social certification in the industry. It was proven that an important aspect in the formation and implementation of balanced development strategy is the development of the concept of sustainable strategic management of industrial enterprises. The concept allows establishing methodological bases of management principles and methodological bases of management technologies and tools for individual companies. It was established that the strategy of sustainable development of industrial enterprises should be based on a long–term program of sustainable development, which is a strategic document that contains a number of steps, coordinated in space and time, to engage resources. It was proven that the implementation of a balanced strategy of development involves purposeful improvement of economic, organizational, technical, technological, production, market, social, administrative, environmental and other components of the system. Transformations that occur in the course of implementing the strategy under the influence of external factors acquire new quality, both economic efficiency and competitiveness of the enterprise in the market increase. The scientific novelty of the research lies in the development of the concept of strategic management of the balanced development of an industrial enterprise based on purposeful improvement of economic, organizational, technical, technological, production, market, social, administrative, environmental and other components of the system, which collectively provide a synergistic effect. The practical significance of the work is in the possibility to form and implement a strategy of sustainable development of an industrial enterprise as an efficient system of management, which will provide for a timely forecasting of purposeful and gradual improvement of economic, organizational, technical and technological, production, social, administrative, market, environmental and other components of this system, which will acquire new qualities during the process of implementation of the novelties.

44-54

Authors: Goley, Y.

The aim of the research is to improve the management of innovative potential in the field of Housing and Communal Services (HCS) under conditions of establishment of decentralization of the regions and the formation of measures to provide reforms in this area. Theoretical and methodological basis of the research is the scientific papers and designs of local and foreign authors; the State program of reforming HCS. To achieve the set purpose, we applied general scientific, as well as comparative and analytical methods. The need to manage the innovative potential under conditions of growing competition among national manufacturers in their pursuit of integration into the world economic space was researched. The performed analysis found technical–technological and financial state of HCS in the regions unsatisfactory. Formation of measures to implement the State program of reforming and development of HCS was substantiated. It was demonstrated that the way to engage foreign investments stumbled into certain obstacles, related to the excessive centralization of financial resources and their insufficiency for economic freedom of the regions. Special attention is paid to the fact that innovation activity in Ukraine has low level of development that can be explained by insufficiency of financing of scientific activities (applied research, designs), as well as the lack of incentives for its implementation. Unfavorable macroeconomic situation and the activities of the government bodies to withdraw working capital, increasing taxation burden lead to decrease in innovation activity of enterprises. It was demonstrated that the priority fields of the economy of the state, which need stimulation of investment and innovation, also include HCS, which remains one of the most technically backward industries of the national economy. It was proven that the current state of technological infrastructure did not meet the requirements of a market-driven economy. The qualitative analysis of technological backwardness of HCS in Ukraine by the leading foreign specialists was cited, in particular by the Friedrich Ebert Foundation. The scientific novelty of the research lies in the need to improve the management of innovative potential and to develop proposals of consistent reforms in the area of HCS. Practical significance of the work is to provide recommendations to the urban residents regarding the implementation of the advantages of setting up ACMAB. The prospect of further research is the analysis of existing ACMAB in the regions and preparation of proposals for elimination of the shortcomings in their activity.

68-77

Authors: Evtushenko, N.

The paper is devoted to the study of the current state of taxation system in the period of its reform and to further designs in the field of fundamental bases of taxation. The purpose of writing this article is an in–depth study of the nature, the essence of risks in the sphere of taxation, consideration of the content of the system of the risk management and substantiation of conceptual bases of the efficiency of the taxation risk management by introducing a systematic approach under conditions of a large share of the shadow economy. The study was conducted with the use of the methods of deduction and induction, system approach, analysis and synthesis on the basis of the legislative framework of Ukraine, data by the state fiscal service of Ukraine, data by the state statistics service of Ukraine, papers by domestic and foreign economists, materials of the authors’ research. The nature and position of taxation risks in the system of their management were studied. It is proven that the taxation, as well as economic, risks are usually too overestimated, because as far as the cost is concerned, the measures to improve the performance results of human capital are very vague and formed under imperfect information conditions. The need for a systematic approach to managing taxation risks was identified. The main elements of the management system of taxation risks were considered. The influence of human capital and information on the efficiency of taxation risks management was proven. Special attention is paid to the feasibility study of taxation risks in the system of their management and to minimization of countermeasures. It is proven that such a system can be described as a set of certain methods, procedures and measures that makes it possible to forecast the deficit of tax payments and to take measures in regard to minimizing abuses in the taxation field. The main elements of the taxation risks management system were considered. This system is a set of interconnected and interrelated elements such as: 1) the essence and the original sources of risk; 2) analysis, evaluation and description of the risk; 3) methods of minimizing risks; 4) monitoring of measures of prevention and counteraction of risk. It is proven that the method of systematization of the taxpayers is applied according to the standards for determining the taxation risks in the system of their management. This approach will allow implementing into practice a new strategy of organization of the control and revision work with significant reduction in the cost of implementation of planned inspections. It is stressed that the taxation risks should be considered as a scientific basis for the design of the criterion of the efficiency of creating systems of national taxation security. Like any risk, taxation risks must not be identified only, but kept to a minimum. To do this, it is advisable to apply a taxation risks management system as a set of certain methods, procedures and activities. The use of human capital and information software will provide for reaching the necessary level of efficiency. The application of a systematic approach in the theory and practice of taxation will help to anticipate the negative consequences of the impact of the external environment; will contribute to the efficient monitoring of the risks and their practical management. The fiscal service may increase the amount of tax revenue to the budget by reducing tax abuses (tax evasion). This, in turn, will promote the exit of the economy out of the shadow. Scientific novelty of the research is in the deepening and determining the nature and the essence of taxation risks, as well as the substantiation of conceptual bases of the efficiency of their management through the implementation of a systematic approach. Adopting a systemic approach will allow fiscal services to efficiently manage taxation risks. A promising area of research is to review regulating documentation of the state fiscal service on the basis of a systematic approach and consideration of taxation risk as a measurement of results of human capital performance and imperfect information provision.

87-96

Authors: Meshko, N., & Shitov, D.

Growing international competition on the world market increases relevance of the problem of development of high technological potential of the country. The most dynamic sector of the world economy is knowledge–intensive services that belong to the most science–intensive and technology–intensive sector of the world economy. The purpose of writing this article is to systemize scientific and practical bases of research into the area of knowledge–intensive services in the context of global economic integration. General scientific and special research methods were applied: the method of historical analysis, method of abstract–logical analysis, theoretical generalization, systematic approach. The paper defines knowledge–intensive services as the main factor in the rapid development of the national economy. Their connection to the increasing importance of knowledge and to their converting into a separate factor of production was substantiated, which directly affects the formation of the national competitiveness of the economies of countries and increase in their productivity. A historical review was performed and it was discovered that the model of innovative development of national economy transformed into the concept of the "knowledge economy”, because scientific and technological innovation is just the final result of a wide range of socio–economic factors, many of which form and operate outside the productions facilities, where innovations are directly implemented. It is shown that innovations form the basis of the development of the global economy: companies perceive them as an efficient means of increasing profits and entering new market segments, while the governments – as a means of accelerating economic growth through competitiveness in global markets. It is stressed that the knowledge–intensive services are an integral part of the economy. They are based on knowledge and are an important driver in the development of the world economy under conditions of global economic integration. The main factors were investigated that influence the pricing of knowledge–intensive services. The factors of the formation of the market for knowledge–intensive services were substantiated. The scientific novelty of the research lies in the systematization of scientific and practical bases of the development of knowledge–intensive services in the context of global economic integration. The practical significance of obtained results is the application of materials of this article by domestic scientists to analyze the pricing and competitiveness of knowledge–intensive services of Ukraine in the world market. Analysis of the drivers of creation of the export potential of the knowledge–intensive services of national economies of leading countries is a relevant scientific task for further studies.

103-113

Authors: Nosyk, О.

Exploring the peculiarities and trends in innovation development in modern conditions is based on defining its new characteristics caused by postindustrial transformations. The aim of writing this article is to study the main elements of open national innovation systems and trends of their integration into international innovation cooperation. In the course of performing the set tasks, we used methods of system and structural–functional analysis to substantiate the main components of open innovation systems and the trends in their formation and operation. It was stressed that the main characteristics of open innovation systems are innovation entrepreneurship, innovation networks, innovation cooperation and partnership, innovation clusters and ecosystems. The driving force of modern innovation process is the entrepreneurial innovation activity, covering all stages and areas of system innovation process, relying on innovations in technology, management, market, social and providing for innovative development of the society. It was discovered that the innovative collaboration involves its participants in the innovation process with the use of such forms as technology transfer, information exchange, research and educational programs, commercial exchange of innovative products. Innovation partnership combines innovation resources and activities of the participants – setting up innovative enterprises, joint implementation of innovative projects. In the modern period, innovation collaboration and partnership develop at the level of corporations, industries and sectors of national economy and on the international level. Development of innovative cooperation and partnership depends on the formation and status of innovation ecosystems as the medium of open innovations. Influenced by global factors, the development of innovation clusters is characterized by the trend of internationalization of innovation activities on the basis of international cooperation among clusters of different countries. Innovation development leads to certain transformations in the human capital, growth in the level of its innovativeness and innovation. Internationalization of human capital in innovation occurs on the basis of the development of international scientific and technical cooperation and implementation of social humanitarian programs. Directions of formation of open innovation systems are the development of innovation entrepreneurship, innovation networks, innovation cooperation and partnership, innovation ecosystems and clusters. The core of open innovation systems is the human capital of innovation development. The scientific novelty of this research made it possible to determine the conditions and factors for the innovation systems to reach various levels of open nature and substantiation of their components and areas of internationalization. The practical significance of the obtained results is application of the materials of this paper by the subjects of innovation activity for managing the innovation process based on the principles of open innovations. Further research into defined scientific problem will be focused on the substantiation of features of renewal of human capital of open innovation systems.

123-130

Authors: Slivenko, V.

The aim of the research is the analysis of efficiency of the processes associated with the innovations in the sphere of activity of the prosecution service during the reform of the law enforcement system of the state, the study of important factors of reformatting and dynamics in further changes in the system. To achieve the goal, we used a set of methods: comparative, of structural analysis, synthesis, induction and deduction. The processes associated with the realignment of the law enforcement institutions of the state were analyzed with their legal status clarified. The directions for reformatting of the law enforcement institutions of the state were identified, the innovations in the management of the law enforcement activity during the reform of law enforcement areas were illustrated: formation of new principles of personnel policy of the department (independent and transparent competitive mechanism of appointments to vacant positions), arranging the system of motivation, increasing the level of independence in decision making, getting rid of not inherent functions and improving the disciplinary liability of employees. It was noted that the reforms in the field of management of the law enforcement service were carried out with regard to international experience and the European standards of law enforcement. The scientific novelty of the research lies in the review of innovations in the sphere of the law enforcement activity in the period of radical reform of the society: formation of new principles of personnel policy in the department, independent and transparent competitive mechanism of appointments to vacant positions, arrangement of system of motivation, improvement in monitoring systems, increase in the level of independence of employees in decision–making, freeing employees from the unofficial "pressure" by the leadership, organization of independent and democratic bodies of the law enforcement service – Council of prosecutors and qualification board, getting rid of not inherent functions (general supervision over the law) and increase in disciplinary responsibility. Practical significance of the obtained results allows taking the conclusions into account in further reformatting of the prosecution service to a new law enforcement structure that meets the requirements of a legal state. Further research in this direction will contribute to the search for innovative ways of solving the problems of the reform of law enforcement system of our state.

144-153

Authors: Yaniv, L., & Zinchenko, O.

In the period of crisis situation in the economy and socio–economic instability in Ukraine, the problem of the budget deficit is very acute. In recent years the state budget of Ukraine has faced such a big problem as the deficit, due to the excess of spending over income of the state budget. The purpose of writing this article is to research into existing problems of the deficit of the state budget of Ukraine, substantiate causal relationships in the system of insufficient funding of state activities and development of ways of its optimization. During the study we analyzed scientific papers by Ukrainian scientists and experts who explore the problem of the deficit of the state budget, legislative and government materials. We used the following general scientific methods: method of cognition, method of analysis, method of analysis and synthesis, as well as the method of comparison. The essence of the deficit of the budget system and the reasons of its occurrence in Ukraine was considered. Underlying causes of budget deficit in Ukraine are slump in production, decrease in the efficiency of functioning of industries and businesses, unreasoned socio–economic policies, which led to a decline in the volume of gross domestic product and national income. This naturally caused a decrease in the volume of financial resources in the state and reflected in the indicators of the budget in the form of long–term deficit. We defined the dependence of the budget deficit on the government debt. It is established that there is a close relationship between the size of the budget deficit and state debt. Budget deficit increases national debt, and rising debt, in turn, requires additional expenditures for its service and thereby increases the budget deficit. The links of budget deficit to the country's economy were identified. We discovered the consequences of raising interest rate, which, on the one hand, reduces investment attractiveness in the domestic market of the country, on the other hand increases the attractiveness of the foreign financial investments in the country. Significant currency flows lead to the growth of the debt and, as a result, the growth of the currency exchange rate, reduction in the net exports of goods and decreased indicators of investment activity. This reduction is the reason for reducing the level of labour productivity and real income in all of its forms that provokes a decrease in investor confidence, and hence, reduces foreign investment programs and increases the withdrawal of capital abroad. The ways of overcoming budget deficit were substantiated that are based on improving the taxation system, attracting personal savings of the population to the investment sphere, providing financial support to small and medium businesses, enhancing the responsibility of businesses, strengthening control over the payment of state money, reforming taxation system, improving normative and legal support of the budget process. The scientific novelty of the research lies in the establishment of causal relationships of budget deficits for the scientific substantiation of budget management in the period of the structural transformation of the economy. The practical result is to identify ways of reforming the budget system of Ukraine and its transition to the investment model. A promising direction for further research in this area is developing a model of the budget process on the basis of causal relationships, which is capable of detecting the risks of deficiency and minimizing their impact.

3-10

Authors: Gaponenko, S.

Modern trends in the development of the global telecommunication industry can be characterized as a movement toward globalization, creation of a unified information space, a single unified telecommunication system and standards of information sharing, implementation of new information technologies into important spheres of activity of the society, especially in the economy. Development of telecommunications is one of the factors ensuring the functioning and growth of the state’s economy, because the dynamics of modern world economic relations predetermined dramatic increase in the demand for telecommunication services. In its turn, the scientific and technological revolution contributed to the creation of new telecommunication technologies, which due to the multiplier effect generate new services and consequently form new markets. The aim of the research is to analyze and discover peculiarities of the telecommunications industry of Ukraine, based on statistical, scientific and theoretical data and taking into account the achievements of the world's leading analytical companies, to form trends and perspectives of its development through the use of innovative potential. The telecommunications market was studied and the conclusions made about the market of mobile operators "approaching” a maturity stage. At the current stage of development of mobile communication, additional services based on different technologies are actively developing. Thematic services are dynamically developing – reference and information and entertainment services for mobile communication, while themed services using SMS technology are also popular. The peculiarities of the development of Ukrainian mobile communications market were discovered: 1) lack of new companies and, accordingly, of any pressing incentive for intensive innovative development of the industry; 2) the need for the development of additional services is due to the saturation of the mobile market and the aggravation of price competition; 3) additional services can be named stimulating for the marketing activities of the companies–operators. The trends of the market development were formulated: telecommunication companies are forced to develop innovative policy and constantly bring new services to the market, the price of which, as evidenced by the results of the study, is quite high and does not always quickly pay off. It is expected that the rate of development of mobile Internet in Ukraine will significantly accelerate if the operators are able to provide services of the third–generation 3G (UMTS) standard in full using this resource. Ukrainian telecommunications market will continue to grow, albeit by small tempo, due to the popularity of mobile Internet services. But the true dynamics can be expected only after the implementation of efficient mechanisms of regulation that will reduce the impact of dominant operators on pricing and introduction of new services and technologies. Scientific novelty of this work consists in determining the status, major trends and directions of development of Ukrainian telecoms industry through efficient use of innovative potential. The results of the study can be used for the industry’s strategy development and identifying of promising areas of investment for the companies that work in the telecommunications market of Ukraine. Further research can be conducted with regard to the prospects for creation of a new market through larger use of additional services of the telecommunication market.

15-23

Authors: Hromtseva, D., & Krupskyi, O.

The issue of safety culture is one of the most important in a modern medical facility because any problems during the provision of services may lead to irreversible consequences. Not only the patient may suffer, but the doctor who assisted. Unfortunately, very little attention to this issue is paid in Ukraine. Based on this, we can say that the topic is relevant and requires studying. The purpose of writing this article is the analysis of the ways of forming professional safety culture in clinical medicine. The methods by which we carried out scientific research are observation, analysis, evaluation, comparison, generalization. The work examined interpretation of the term "safety culture", types of innovation in which it belongs and the main methods of its creation in the medical field. Safety culture in the medical field involves the right of all health care workers to use measures to prevent actions that can harm a patient or a colleague. Different approaches were considered in the interpretation of the term "safety culture" and we proposed our own: safety culture is a system of values, objectives, knowledge and skills, rules and procedures, convictions shared by representatives of a certain medical profession and supported by patients, creating a favourable working climate, atmosphere of trust and becoming an efficient tool for achieving the goals of the organization. The main components of the safety culture were defined: responsibilities of managers, communication, performance, resources of safety, trust, the degree of job satisfaction, etc. Based on several studies, it was found that no country has a perfect medical system. Every system should be improved. We proposed measures to fix the situation with the safety culture in health care facilities. The correct management of safety can eliminate or fix many medical errors. That is why the need for a clear program of implementation, execution and control of SC in the medical establishment is necessary. Scientific novelty of this work lies in the interpretation of the term "safety culture" at medical institutions and in determining major steps towards its creation. Practical value of the work is the opportunity to implement these steps in medical institutions for improvement of the safety culture and, therefore, to reduce the risk of bad accidents during treatment. Further research can address safety culture management in medical institutions on the examples from the experience of countries with effective systems of health care.

30-37

Authors: Yefimova, S., & Grynko, T.

The relevance of the study is due to the especially sharp of late issue of the competition in world markets, which requires strengthening of innovation component from the economy of any country, including Ukraine. Ukrainian enterprises with innovation activity are able to maintain high growth rate in the long term. The main component in the effectiveness and efficiency of carrying out innovative processes at an enterprise is its innovation potential, including professional staff that is quite difficult to estimate given the rapid changes of the fulfilled tasks. The purpose of writing this article is the analysis of existing approaches to the evaluation of the innovative potential of enterprises and their improvement taking into account the peculiarities of service enterprises, the formulation of the task of innovation management and the main directions of development of innovation potential of an enterprise. We applied system approach, methods of analysis and synthesis and the method of modeling when carrying out research. The task of innovation management of an enterprise was formulated. A methodological approach to the evaluation of the innovation potential of enterprises in the sphere of services is attached. This approach will allow the heads of the enterprises in the sphere of services to monitor creativity and collective intelligence of the employees, to assess an enterprise on innovation and make timely decisions to eliminate the deficiencies. It was stressed that special measurements, quantitative evaluation of the intellectual, professional, educational, and other qualitative characteristics of the potential of employees is quite a difficult task, to perform which the expert methods are used based on interviews, surveys of executives, business owners and prominent managers. The main directions of stimulating the development of the innovation potential of an enterprise were formulated. A conclusion was made that under current conditions, in the absence of perfect methods of evaluation of innovation potential of the services industry, review and comprehensive application of different methods proposed in economic literature will allow obtaining more reliable information for justified management decision–making regarding the management of the innovation potential of an enterprise, introducing relevant changes into the components of the innovation potential to ensure its adequacy to the set innovation goals and increasing a general level of competitiveness in the given industry and in the global market as a whole. The scientific novelty of the research lies in improving the methodological approach to the evaluation of the innovation potential of an enterprise on the basis of the complex of main indicators specific to services and consideration, during the evaluation of personnel, of the innovation potential of an enterprise. The proposed approach allows analyzing the level of innovation potential of enterprises in the different spheres of activity: production, services, state government, commercial and others, where the innovation potential acts not only as a set of available and adequately allocated resources, but also as approved management decision or immaterial object. Since under modern conditions we tackle dynamic market of goods and services and the businesses need to respond quickly to these variable factors of influence, further studies might be directed to determining the capacity and speed of the enterprises to respond to these changes, in particular the ability of the staff to work efficiently and to realize the innovation potential under these conditions.

45-60

Authors: Ilnitsky, D.

The role of higher education institutions in the world is growing in ensuring socio-economic development that is the result of the transition to the paradigm of knowledge economy in the most developed countries. Started in 2014, the reform of higher education system in Ukraine must, among other things, include ensuring the implementation of national intellectual capital through technologies transfer. The relevance of the article is predetermined by the need for a comprehensive approach to the preparation of plans for reforms in the period of global competition for knowledge as the main resource for development. The purpose of writing the article is substantiation of the recommendations on the most urgent aspects of the development of technology transfer in Ukraine on the basis of generalization of foreign experience and the analysis of domestic realities. To achieve the objective we identified the following tasks: to generalize theoretical principles of TT; to identify the world leaders of the TT and their peculiarities; to explore the characteristics of the development of TT in developing countries; to study the current status of TT in Ukraine. The article substantiates that the establishment of the developed innovative economy in which the activity of the TT is an important factor, as a rule, takes a long time. Results of the study showed that the lack of efficient activity of TT is often due to the fact that this activity is viewed separately from the more complex issue of knowledge management in all forms, in particular as a mandatory stage of R & D. The lack of implementation of the competence–based model in domestic Universities, research centers, businesses and state and local governments leads to the fact that the activities of TT do not have any mentioning of entrepreneurial, marketing competences. Their lack, in turn, causes low efficiency of TT activities. In the developed countries, the growth of the commercial activity of the Universities and research centers came as a result of evolutionary demands of society regarding the efficiency of investments in science and education. In the developing countries, such as Ukraine, the desire of commercial aspect in the development of the commercial aspect of TT is considered in terms of the impossibility of providing sufficient and stable funding, lack of financial mechanisms of accumulation of the results of successful TT. Under such circumstances, the really concerned are exclusively the employees of Universities and research centers themselves, the interests of whom are detached from other stakeholders’ intentions, the unity of whom is substantiated in the triple helix concept. The effectiveness of efforts with regard to TT is limited by the lack of opportunities of accumulation of financial results from the commercialization of OÌV in domestic Universities. Received financial results often are allocated on current activities because of insufficient, falling financing from traditional sources. The means of the state budget must remain the main traditional source, but in this case engaging other sources must be supported. The negative dynamics of spending state funds on research and educational activities is predetermined by various factors, among which is insufficient disclosure of the recipients from the state funds of the reports about the results and the analysis of the efficiency of their spending. Lack of publicity, lack of transparency may testify to the privatization of the results of the activities by individual subjects or to a significant corruption component in their activities. At the same time, lack of publicity can indicate a low level of public accountability of the results and inability to take responsibility for certain risks. The lack of information about created effects, including multiplying, from the implementation of OÌV and technologies provides prerequisites for the relative "victories" in the competition for budget funds in other areas. Introduction of the competence–based model, in particular entrepreneurial and marketing competencies, into the activities of TT of national institutions should improve their efficiency in the medium term to the level of the developed countries. Taking into account the obtained findings during the development of the reform of the system of education and science will increase their level of international competitiveness and the level of efficiency of investments in this field, which will have comprehensive positive impact on national prosperity. Scientific novelty of the work is proven by: substantiating of the implementation of long–term strategies to increase competitiveness of universities and research centers as key institutions in the generation and transfer of knowledge; detecting the insufficiency of entrepreneurial, marketing and other competences in the development policy of the University offices of technology transfer; substantiation of the necessity of implementation of societal requirements concerning accountability of universities and research centers for disclosure of the efficiency of spending tax payers’ money and their contribution to socio-economic development of the regions and the country. There remains a wide range of issues, the study of which my reflected in further work. In particular, we believe relevant: 1) justification of a scorecard measuring all aspects of TT; 2) study of the formation of professional networks in the field of TT; 3) substantiation of the system of motivation and efficiency of cooperation of all involved players; 4) methodological work with the patent policies of the universities and their convergence with scientific and research institutions; 5) building a culture of public accountability of institutions of scientific and educational spheres as recipients of the taxpayers' funds.

70-79

Authors: Klymova, T.

Innovation component is the basis of modern business development, regardless of which field this business belongs in, who owns it and which structure its capital has. The challenges of modern society force to step up efforts of the developing countries in the direction of development of innovation infrastructure, which would allow taking a quantum leap in the development of industry and economy. These challenges predetermined the relevance of the chosen research. Formation and development of innovation policy in the economies of the developing countries is the actual task of recent studies of many authors. Identification of general trends in the development of leading countries will make it possible to work out a common strategy for the developing countries, in their further development of innovation policy. The purpose of writing this article was to perform the analysis of formation of innovation policy in the leading countries of the world, such as the United States of America and Japan to identify the peculiarities of these countries, common features and differences. During the research we applied methods of comparison, generalization, abstraction, analysis, elements of system analysis, algorithms and simulation. As a result of the survey we revealed peculiarities of formation and development of innovation policy of the United States and Japan with the following conclusions made: 1. The development of innovation policy of a state grows when coordination and key financing is provided by the state and by local governments, too. 2. The largest effect in the development of innovation activity for the countries with transition economies can be observed by choosing "selective" directions of development. 3. Creation of regional technological parks takes place with regard to historically established regional opportunities and directions. 4. Approval of the legislative base in the country, which must fully support (at all levels) innovation entrepreneurship. 5. Formation of a system of private (venture capital) funds, regulated by state programs in priority areas. At the present stage of development of the world economy, only innovation policy creates a vector of the development of a state. This is confirmed by the experience of such leading countries as the United States of America and Japan. As the result of generalization of the experience of formation of the innovation policy of these countries, we identified the main trends of development that can be applied in other developing countries, taking into account their national characteristics. All of the identified factors positively affect the increase of progressive indicators of the economy, well–being of society and the activity of integration at the international level. The novelty of the work lies in the fact that for the first time we analyzed formation of innovation policy in the USA and Japan to identify common peculiarities and differences in the development of innovation policy, as well as we attempted to obtain the scheme of creation of the basic structure that allows developing and implementing innovation. The obtained results can be applied to further systematization of information on the development of innovation policy for the formulation of a universal model.

85-93

Authors: Negrych, O.

At the present stage of globalization, extremely important is the problem of attracting foreign investments. In the world in general and in Ukraine in particular, competition intensifies due to the growing demand of national economies in investment resources, and the issue is more acute of forming efficient mechanism for attracting foreign investments. Despite numerous studies of famous scientists, the problem of motivation of investment activity is still not fully explored. Not enough studied but worth attention is the issue of assessment of the risk caused by specific motivation of foreign investors for the national economy, and the development of recommendations for improving the management of investment activity in order to avoid or reduce possible negative effect of foreign investments. The purpose of writing this article is the assessment of risk caused by specific motivations of foreign investors for the state, and the development of recommendations for their avoidance or reduction by the analysis and systematization of the main motivations of foreign investors and the forms of realization of investment projects. The article analyzes the main motives and demotivators in the implementation of foreign investments while they are organized by main classification features. In the result of the analysis of existing approaches to the classification of forms and valid legislation, the author singled out and grouped the main forms of realization of investment projects. Based on the analysis of the classifications of the motivations and forms of realization of investment projects, we assessed the risks for the state, caused by specific motivations of foreign investors, and formed recommendations on their avoidance or reduction. The scientific novelty of the work consists in establishing interrelation between specific motives of foreign investors and the forms of implementation of their investment projects. Not a less important element of scientific novelty is a risk assessment for the state of the inflow of foreign capital caused by specific motivations of investors. Practical results of the work consist in forming recommendations on improving management of investment activities, taking into account of which will help to avoid or reduce possible negative consequences of the influx of foreign capital. A promising direction for further research into the topic of this work can be considered the improvement in the mechanism of management of investment activities at the state and regional levels.

100-107

Authors: Steblianko, I.

According to the Land Code of Ukraine, the land is the main national wealth, which is under special protection of the State. As a result of the land reforms in Ukraine, the private ownership of land is renewed, restrictions on granting the land plots to citizens are removed, but the rational highly–efficient land use and agriculture growth in the trajectory of sustainable development is not provided. One should also point to the lack of a comprehensive approach to determine the place of the land reform in the system of transformation of the national economy. The purpose of the article is to substantiate the principles of the land reform and determine its dialectic link to other reforms of the national economy. To achieve this goal we applied system approach, general scientific methods of analysis and synthesis. The information basis of the research is the legal regulating data of Ukraine and the reporting data of the State Service of Ukraine for Geodesy, Cartography and Cadastre. The main scientific result of the paper is substantiation of principles of land reform and determining of its dialectic link to other reforms of the national economy, namely, decentralization of management of the national economy; environmental reform, reform of agriculture and forestry. The following principles and guidelines must underlie the land reform in accordance with a system approach: inventory and delimitation of agricultural lands, conducting their financial evaluation and regular re–evaluation, creation of a civilized land market and the right of rental of land plots for agricultural purposes on a competitive basis, stimulation of medium–term and long–term lease relations, decentralization and eco–friendliness of land relations, etc. The scientific novelty of the work is defining the principles of land reform in Ukraine, which includes identification of its dialectic unity with other reforms in the national economy. Practical significance of the results of this work consists in identifying specific measures for reforming land relations with regard to causal relationships of economic reforms in Ukraine. The prospect of further research on the topic of the work is the development of proposals to improve the taxation of land relations.

3-9

Authors: Hudym, E.

Globalization creates growing need for intensification of generating innovation. The most important platform for the formation of new ideas is higher education, where students can realize their ideas and transform them from theoretical ideas into profitable business projects. The European experience of such transformation is useful for the Ukrainian educational system. Since the study of the means of adapting foreign experience to support innovation in higher school of Ukraine was not paid sufficient attention to, there is a need for relevant research. The aim of the research is the analysis of the experience of support and implementation of innovations of students in Europe at Lund University and Gdańsk University of Technology to identify the tools of its adaptation in higher education of Ukraine. The research methods are abstract–logical, analytical. The paper analyzes experience of one of the oldest universities in the world – Lund University and it was revealed that education and carrying out research in the areas of engineering, law, sociology, economics and management, medicine, theology, art, music and drama takes place on its basis. Demola Innovation Center, created on the basis of the University, provides collaboration and open innovation through interdisciplinary interaction between student groups that work with real customers. On the basis of the Center communication between representatives of the businesses, the higher school and the real buyers is carried out. It was established that at Gdańsk University of Technology, support of innovation is realized within the innovation program "Horizon 2020" – a financial tool aimed at developing innovations to ensure the competitiveness of the EU economy under conditions of globalization. It was found that the development of the European education system by implementing innovations has been going on for 25 years already. This experience, as the practice shows is quite successful. Incubators, created on the basis of the universities allow implementing the new economy. Funding today the innovation processes on the basis of higher education, the European government forms the platform for the development of profitable business as a guaranteed taxpayer in the future. We made a conclusion that the application of this practice in the Ukrainian higher education will intensify the processes of generating innovation, which, in its turn, will enhance the competitiveness of national higher education. The scientific novelty of this work consists in identifying means of supporting innovation of the youth by creating innovation incubators, student research labs on the basis of higher education (University), which allow implementing new ideas, creating new jobs, increase the level of competition of national economies. The practical value of the work lies in the fact that the use of the European experience of implementation of innovation through the development of scientific laboratories will generate ideas and increase the level of competitiveness of national education. Further research will have to study the experience of other leading universities of the world in support of innovations.

19-27

Authors: Belchik, T., & Chuykovа, D.

The relevance of the research is predetermined by the need, during the evaluation of innovation development of the region, to comprehensively consider the conditions, capacities, performance of this development. System research of the innovative development of the region to improve its innovation system is prevented by the lack of method for evaluation the innovation development of the region. In the domestic literature, the innovation development is mainly analyzed at the level of enterprises. The aim of the research was to identify the problems of innovation development of the region (the case of Kemerovo Region, Russian Federation) by clarifying the structure of the regional innovation system and improving the methods of its assessment. We applied the following methods of scientific knowledge: analysis, generalization, analogy, classification, comparison. The paper considers the concept of the innovative development of the region and the notion of regional innovation system; the three components of the regional innovation system were identified: innovation potential, innovation climate, innovative susceptibility. We attach the method of evaluation of innovative development of the region, the results of its testing on the example of Kemerovo Region. Based on the received results, the problems of innovative development of the region were highlighted (inconsistency in the actions of the authorities, businesses and science, limited demand and proposals of innovation, lack of qualified staff) and recommendations for enhancing the efficiency of innovative development of Kemerovo Oblast were formulated: the need for the development and implementation of the foresight–project "Innovative development of Kemerovo Region” with working out a roadmap, development of the territory marketing and innovation marketing. It was proven that the developed method of evaluation of innovation development can be used not only for the quantitative analysis of innovation activities in the region, but also to identify existing problems in this activity, the solution of which will help increase the efficiency of the innovative development of the region. The practical significance of the work lies in the fact that the application of the formulated recommendations as a set of actions will help Kemerovo Region follow the way of innovative development and take up stable positions on the market for innovations. The scientific novelty of the research lies in clarifying the concept of regional innovation system, development of methodology for the evaluation of the innovative development of the region, which helps not only the quantitative analysis of innovation activity but qualitative analysis of existing problems of regional development in the region. The prospects of this research are in the application of the developed method in other regions of the Russian Federation to conduct a comparative analysis of their innovative development, and in the identification of common and individual patterns and trends.

35-42

Authors: Holei, Y.

For realization of integration to the EU, the growth of innovation activity is an important key to economic development of the country. However, the absence of efficient incentives for innovation and state support of high–technology companies indicates that the appropriate conditions and the environment for innovative entrepreneurship in Ukraine were not created. The aim of the research is to highlight unsolved problems of innovative development, to identify the factors that slow down the activation of innovation activity of industrial enterprises, in particular in the field of machine–building, and to form the ways to overcome them. To achieve the goal, we applied general scientific and comparative analytical methods. It was found that financing innovation programs requires significant funds. Unfortunately, the government allocates only 1–2% of the total required funds, and as the consequence of it, the main source of financing of innovation activity is still the enterprises’ own money, the share of which in 2013 increased significantly and amounted to 72.9% of the total amount of expenditures. We found that the stimulation of innovative development would promote the adoption of positive experience from the industrially developed countries. It was stressed that among the key instruments for the promotion of applied scientific research and designs related to the implementation of advanced technology in the developed countries, a leading place is occupied by the availability of preferential taxation. By the research into theoretical positions and conducted statistical analysis of innovation activity of enterprises, we identified conditions required for the implementation of innovative products at the industrial enterprises of Ukraine: - enhancing the participation of national and regional bodies in the coordination and control of the work of industrial enterprises with the increase in the volume of financing for innovation programs; - increase of the share of new kinds of machines, equipment, devices in the implementation of innovative products by industrial enterprises; - activation of the introduction of new forms of marketing strategy relative to the entering external markets with their own kinds of innovative products. The scientific novelty of the obtained results is based on the proposal for a new approach of using available resources of activation of innovation activity of industrial enterprises, in particular DP "VO" Pivdenny Machine–Building Plant named after O.M. Makarov"; on improvement in current legislation by taking into account positive foreign experience of tax stimulation of innovation activity. In the further studies of the problems of innovation development of industrial enterprises of Ukraine, the development of measures will be considered to improve control at the state and regional level to overcome the obstacles to intensify innovation activity.

49-57

Authors: Duhinets, H., & Rielina, I.

Modern transformation of the economic system of this country led to structural changes in the social environment. Movement of population and human resources inside and outside the country increased. The growth of the scale of international migration processes, their mixed impact on the development of the countries, qualitative transformation of the specified processes determine the importance of the study of demographic and employment dimension of the international migration processes in Ukraine, which is among the main donors of population. The aim of the work is to determine demographic and human dimension of international migration processes in Ukraine. To achieve the goal, we applied dialectical method of scientific knowledge, as well as general scientific and special methods of research. The current state of migration processes in the global economy was examined. It was determined that in the global migration system Ukraine happens to be the country of origin, of transit and arrival of migrants. We analyzed the regional structure of migration flows in the state. It was proved that in recent years the country continues to lose population as a result of emigration, and these losses are not offset by immigration from abroad. This leads to a rapid decrease of the population of Ukraine. In addition, we tackled the problem of emigration of highly skilled labour force out of the country while the main channels of immigration into the country were identified. One of these channels is educational migration because Ukraine is included into the top ten leaders in the international market of educational services. It was substantiated that the target guideline of the state migration policy of Ukraine should be keeping the country's intellectual potential, for which it is necessary to ensure the execution of the following tasks: provision of financial and material resources to the development of science and higher education; funding in full the salaries of teachers in higher education, research workers; development of programs to preserve intellectual potential of the country; development of a mechanism for stimulating research activities and training of qualified professionals. The scientific novelty of the obtained results is in the developing and clarifying theoretical and practical foundations of the research into the issues of demographic and employment dimension of international migration processes in Ukraine. The practical value of the research results is in the definition of the target guideline of the state migration policy of Ukraine, which should be the preservation of the intellectual potential of the country. The participation of Ukraine in the international migration of skilled people should include an evolutionary process of rapprochement with the scientific and technological environment, and this process requires coordinated actions of all branches of government and business, predetermining the need for further research in this direction.

64-71

Authors: Krupskyi, O.

The relevance of the work consists in the following. Tourism is appropriately considered one of the fastest growing sectors of the world economy of the XXI century. Under conditions of permanent economic crisis and therefore intense competition, the main task of the tourist enterprises is to conquer (hold) a leading place in its segment of the market of tourist services, gaining and increasing profits. One way to draw attention of consumers to their services is to offer to the market such a service which would be different from the existing ones. This should be contributed by the implementation of innovations. The issue of management of innovation activity of tourist businesses remains open and requires further consideration by scientists. The aim of our study was to define a framework of provisions for the management of innovation activity of tourist enterprises and to substantiate measures for its improvement. The set scientific tasks were performed with the help of comprehensive general scientific methods: analysis, synthesis and generalization. We examined the definitions of "innovation", "innovating activity", "innovation capacity" in relation to the specifics of the tourist business and tourist enterprises of Ukraine. The need for the involvement of managers of tourist enterprises to form the innovation potential of these enterprises was substantiated. We proposed to specify the concept of "innovation potential of tourist enterprise" as an opportunity to transform and streamline the experience and prevailing stereotypes of the interaction of the subjects of the business process and the concept of "innovation of the tourist company" as a set of scientific, organizational, technological, commercial, financial measures that promote innovation. It was stressed that to discuss the innovation potential of the company is possible only in the context of the tandem “innovation culture of an enterprise” and “professional culture of the manager”. We determined three components of the innovative activity of a tourist enterprise: activities focused on finding or creating new tourist products, new methods of servicing customers, pricing policy, etc.; activity aimed at the completion of the measures implemented earlier, to the level of innovative projects (services, products, technologies), oriented to the needs of the tourist market; measures for the implementation of innovative projects or technologies of production and service provision. The scientific novelty of the work is in the proposal to consider for the first time "the innovation potential of the tourist company" as an opportunity to transform and streamline the experience and prevailing stereotypes of the interaction of the subjects of the business process and “the innovating activity of the tourist company" as a set of scientific, organizational, technological, commercial, financial measures that lead to innovation. The practical value of the work lies in the possibility of using studied definitions of "innovation", "innovative activity", "innovation capacity", "innovation potential" in the practical work in the field of tourist business. The basis of further research might be studying the impact of innovative changes on the organizational culture of tourist enterprises.

77-85

Authors: Sazonets, I.

Informatization of world science predetermined the emergence of new tools for measurement and evaluation of the work of a scientist in quantitative aspect and the creation of scientometric databases, respectively. The existence of different approaches to the assessment of knowledge with the use of the global scientometric databases confirms the relevance of this research. The aim of the research is the systematization of methodological approaches to the assessment of the knowledge accumulated in scientometric databases, and determining prospects for the development of the assessment of knowledge of Ukrainian authors in the world system of scientometric evaluation. We applied general scientific and special research methods: analysis, synthesis, comparative characteristics, theoretical generalization, system approach. In the work a scientometric database is defined as the platform that deposits (accumulates) in electronic format scientific works of scientists of different branches of knowledge and processes lists of cited literature, calculates certain quantitative indicators, based on which it is possible to analyze the influence/credibility of the activity of one or another publication, organization, scientist etc. It is stressed that the main indicator, with the help of which the assessment of knowledge is given, is the knowledge economy index. We carried out a historical review and found that the first and one of the most respected scientometric knowledge databases of the world is Web of Science, part of the platform of the Web of Knowledge. The most widely used quantitative measure that is calculated in this database is the index of efficiency. Another most famous database is Scopus, which Elsevier publishing corporation positions as the largest universal abstract database that allows tracking scientific citation of publications. In accordance with the declared policy of the corporation, this database must become the most complete and exhaustive resource for the search of literature. It was found that the projects concerning the use of the scientometric database Scopus for assessment of the scientific potential of Ukraine in general and individual subjects of scientific activities of the state at the level of the authorities of state governance began to emerge in 2009. It is stressed that only a small proportion of professional publications of Ukraine is integrated into Scopus and the Web of Science, and to analyze objectively the status of science development in the country with their help is impossible. We concluded that despite the inclusion of new publications into these databases, joining them is a complex and lengthy process. Out of several thousand of journals, the Web of Science selects about 10–12, Scopus ~ 50%. The review procedure lasts for almost a year and in case of rejection the renewed request for registration can be submitted only in 2 years. The assumption was adopted about the development of the assessment of knowledge by means of the most famous global scientometric databases in Ukraine: much time is yet to pass until most of the periodicals from the post–Soviet territory will be included into scientific repositories–leaders and a possibility will come to provide objective assessment with their assistance. The scientific novelty of the article is in the systematization of methodological approaches to the analysis and evaluation of knowledge in the world system of scientometric evaluation and in determining the prospects for the development of this sphere in Ukraine. The practical significance of the obtained results is the use by domestic scientists of the materials of the paper to determine scientometric databases and indexes that are the most appropriate for submitting publications and collaboration with the leading periodicals of the world by the fields of knowledge. At present, in the world practice they use 4 indexes of scientific citation as the main tool for the quantitative measurement of the efficiency of the work of a scientist. The use of such indexes is the prospect of further research in the development of the knowledge economy.

92-100

Authors: Falko, E.

The global economy is expanding spatial and time parameters of activity of the tourism business as a real sector of the economy by using information travel products, so the topic of the research is relevant. The aim of the research is theoretical substantiation of the essence of informatization of tourism business under the influence of aggregate processes that characterize the global development of the world economy. The research methods are abstract–logical and the method of theoretical generalization. It is proved that global informatization, inherent in the last decade to all spheres of life, influenced the expansion of the segments of the tourist market and the growing influence of tourist business on the macroeconomic performance of national economies. It was clarified that scientists recognized informatization as the component of the process of globalization, and the problem of the development and the consequences of the introduction of information technology linked to techno–globalization and the theories of innovation development of the world economy. Therefore, the aim of our study was a theoretical substantiation of the essence of informatization of tourism business under the influence of aggregate processes that characterize the global development of the world economy by using the analysis of scientific sources on the problems of development of tourism business under conditions of globalization. In the course of the study we discovered the impact of internationalization, transnationalization, economic integration and the globalization of markets on the development of the international tourism business. It was proven that the informatization of tourism business acquired global characteristics. In the work we theoretically substantiated the essence of the process of global informatization of tourism business, tasks, object and directions of development. A conclusion was made about the tendency to monopolize global information environment of tourist business. The novelty of this work is in the fact that while determining the definition of the concept of "global informatization of tourism business, we took into account, first, the peculiarities of the globalization of the economy of tourism business and, second, the processes of convergence and liberalization of national tourist markets. The results of the research are an important tool to substantiate the development of tourism and its informatization. Today we can observe the process of monopolization of information space by creating global distribution systems that concentrate cash flow and form financial policy of implementation of transactions in the sphere of tourist business. In addition, the development of international tourism business today depends not only on the application of information technologies, since it has features of diffusion and integration of different types of services and industries that directly or indirectly form global resources of tourist services. The identified tendencies in the informatization of tourism business were not sufficiently studied and they need further research.

3-10

Authors: Dabrowska, A.

The author in her article presents services as a market product which is more and more often an innovative product. A particular attention is paid to the services' features which have an important impact on behaviour of the services market participants. Introduction to the market of new, improved, technologically advanced services requires a competent consumer.

16-23

Authors: Blinov, A., & Rudakova, O.

The article describes the features of the transition to an innovative model of economic growth. Articulated reasons leading to failure during the reengineering of business processes in modern organizations. The requirements for the reengineering team. Showing the approaches of one of the most important stages of reengineering - building a model organization «as it should be»

31-39

Authors: Dudiak, S. L.

This article focuses on the present state and prospects of research and technology development in Lithuania. The authors focus on the main competitive innovation spheres (information technologies, biotechnologies, special purpose laser technologies) and analyse the principal lines of innovation policy and strategy. The article presents the results of a SWOT analysis of Lithuanian innovation development and describes the possible fields and mechanisms of research and technology cooperation between Lithuania and Ukraine

46-53

Authors: Meshko, N., & Hlovatska, N.

Outsourcing services market in Ukraine is in the process of formation, so the use of this form of interaction is unconventional for enterprises. Therefore, the result of this research is to develop an algorithm and justify key aspects: Risk Assessment and Feasibility of implementation

62-68

Authors: PrіvarnіkovaI., & Shevchenko, R.

In this article the problem of Ukraine’s energy dependence was investigated. The measures of energy security ensuring and resource saving through the development of renewable energy sources, such as biodiesel derived from biomass (various waste) were analyzed

74-82

Authors: Prysvitla, O.

Theoretical approaches are analysed in relation to determination of influence of транснаціоналізації of world economy on development of economic relations between countries, the necessity of forming of strategy of support of national corporations is reasonable for the context of providing of innovative development of countries with a transitional economy

88-92

Authors: Ruchaievskyi, D.

The strategic analysis of a today’s condition of mining and metallurgical complex is carried out. Two types of the strategic analysis are applied: SWOT analysis and M. Porter’s strategic industry analysis. As a result of carrying out the strategic analysis strong features and weaknesses of mining and metallurgical complex of Ukraine are formalized

100-106

Authors: Smyrnova, T. A., & Holei, Y.

The elements of corporate culture and its impact on innovation management are investigated. A corporate culture tasks in the structure of enterprise activity innovative system are developed