This report examines Ukraine'seconomic decline and development through the lens oftechnology upgrading. The technology upgrading frameworkassumes that economic growth is a function of technologycapability, whereby upgrading occurs through technological,industrial, and organizational change. This technologyupgrading framework is applied to analyze the Ukrainianeconomy, which reflects its limited capability to generate,as well as absorb, new technology. The report finds thatUkraine ranks last among comparison countries in a compositeindex of technology upgrading, with especially lowperformance in terms of production, management, and R&Dcapabilities. A case study on Ukraine's booming ICTsector, Ukraine's fastest-growing sector, showcases thecountry's potential, while simultaneously demonstratingwhich factors and capabilities can constrain its futuregrowth. While Ukraine has developed a vibrant ICT industry,significant challenges exist for its long-term success. Toaddress the challenges, three main areas for policy actionare recommended. These include: (1) the development offirms' managerial capabilities and adoption ofproductivity-enhancing technologies, (2) better integrationinto global value chains, and (3) supply and retention of adigital-ready workforce. The report also offerscross-cutting recommendations for improving Ukraine'sbusiness environment and the complementarities needed forfirms’ growth and upgrading.
PDF
download
878987797
028-85220240
