Year: 2025
Type: article
Abstract: International experience shows that state industrial policy has key structural elements, such as market incentives, adaptation to changes and support for underdeveloped industries. Its main goal is to ensure the competitiveness of the national economy through strategic measures. In Ukraine, the industrial sector remains critically important, which is underlined by the consequences of the global financial crisis: the countries that have deindustrialised have suffered the greatest losses. The Commercial Code of Ukraine (Article 10) defines industrial policy as one of the areas of economic policy aimed at modernising the economic structure and increasing the competitiveness of products. However, the document does not contain a clear definition of industrial policy itself and its correlation with other economic strategies. In the historical context, the development of industrial policy can be divided into three stages: industrialisation (50s-60s), liberalisation and structural reforms (70s-90s), and technological modernisation (since 2000s). Contemporary scholars define industrial policy as a system of government measures aimed at developing strategic industries and technologies. Since 1994, it has been viewed as a mechanism for increasing economic efficiency through support for specific sectors and coordination of public and private initiatives. Given the economic challenges, in particular those caused by the war, Ukraine needs to modernise its industrial complex, which requires improving the regulatory framework and forms of industrial policy implementation. The effectiveness of industrial policy depends on its comprehensive approach. In particular, it is necessary to legislate innovation and investment policy as its components, which will ensure the introduction of new technologies and support for industrial sectors. It is important to develop mechanisms for financial and institutional incentives for the development of priority sectors. The state industrial policy should take into account sectoral and territorial aspects, ensuring interaction between regional and national levels of government. Thus, industrial policy is a fundamental element of the country’s economic development. It covers a wide range of issues, from technological modernisation to legal regulation, which ensures the stable development of the industrial sector and its adaptation to global changes.
Author: V. O. Usatyi
Institution: Yaroslav Mudryi National Law University
Language: English
Topic: Economic Issues in Ukraine
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4409948713