Balanced development of regional economic systems on the basis of smart specialization: european experience and opportunities for Ukraine

Abstract

In the conditions of increasing integration processes, significant changes are taking place at the regional level of administration in Ukraine. Concession of greater autonomy to the regions, delegation of appropriate authorities concerning organization of the process of socio-economic development increases the complexity of managing regional economic systems. The state has transferred the powers and considerable resources in the sphere of regional development to the regional authorities. It requires the use of modern methods of regional administration that would meet not only a new status of regional economic systems, but also the environmental conditions characterized by a high level of instability. Smart specialization is a new tool of the European Union, which can help Ukraine to build up regional capability, taking into account two important approaches: local conditions and the knowledge economy. These approaches envisage identifying the competitive advantages and assets of the region, use of its innovation and scientific potential. The key to success of launching smart specialization strategy in Ukraine is real cooperation of the local authorities, the scientific community, the civil society and business, which will help Ukraine get an access to collaboration with European subregions, to increase the number of joint projects with the EU, to attract investors and to ensure “smart” use of manpower. System reformation of functioning regional economic systems of Ukraine, in the view of significant political and legal changes that have taken place in the country in recent years, becomes an area of special strategic importance at the national, regional and local levels and requires comprehensive scientific research and substantiation.