PESTEL ANALYSIS OF INNOVATION INPUT AND OUTPUT INDICES FOR UKRAINE

Abstract

This article undertakes a comprehensive and in-depth PESTEL analysis, meticulously dissecting the intricate Political, Economic, Social, Technological, Environmental, and Legal factors that profoundly influence the innovation input and output indices in Ukraine. The core objective of this research is to systematically identify and critically evaluate the multifaceted determinants that collectively shape the nation's evolving innovation landscape. This involves meticulously pinpointing both the propitious conditions that foster innovation growth and the formidable obstacles that impede its accelerated development. The political dimension examines government strategies, legislative initiatives, levels of corruption, and geopolitical stability, all of which directly impact the investment climate and support for research and development (R&D). The economic aspect covers macroeconomic stability, GDP levels, inflation, access to finance, investment in innovation, and the development of small and medium-sized enterprises. Social factors consider education levels, workforce qualifications, entrepreneurial culture, the perception of innovation, and demographic trends. The technological dimension focuses on the availability and accessibility of modern technologies, the level of digitalization, the development of information and communication technologies, and the capacity for technology transfer. Environmental factors include the impact of environmental policy on innovation processes, the development of "green" technologies, and sustainable development. Finally, the legal aspect assesses the effectiveness of intellectual property protection, tax legislation, and the regulatory environment for innovative activities. By integrating these factors, the PESTEL analysis helps identify potential opportunities to strengthen Ukraine's innovation potential, as well as pinpoint existing risks and challenges. The findings can serve as a basis for developing effective strategies and policies aimed at stimulating innovation, enhancing economic competitiveness, and ensuring Ukraine's sustainable development.