PROSPECTS AND ADVANTAGES OF THE INNOVATIVE DEVELOPMENT OF THE ECONOMY OF UKRAINE AND THE FORMATION OF A CLOSED CYCLE ECONOMY

Abstract

The article studies the experience of the transition of the developed countries of the world to the circular economy model. Many countries of the world have their own programs for the development of this economic model. Therefore, there is an urgent need for in-depth study, involvement and adaptation of modern world experience in the economy of Ukraine. It is important to study the theoretical foundations of the circular economy and to study prospective models of its formation. Increasing the economic activity of the countries of the European Union and programs for the development of this model is consistent with the policy of attracting investments. The study empirically confirmed that the existing challenges on the way to the implementation of the new model are also related to the consciousness of the population and employment opportunities in these areas. The study of experiences and approaches to solving the problem of the impact of innovations on the circular economy shows that this new economic model could not exist without the development of innovations, but, on the other hand, they are its driving force. The paper examines the main advantages of the green economy of the closed cycle and important aspects of the development of the circular economy in ensuring the sustainable development of the state. The article examines the scientific research of the circular economy model by scientists from different countries of the world. It was determined that the introduction of more advanced technologies makes it possible not only to reduce the negative impact on the environment of production activities, but also to reduce the amount of accumulated waste of past periods. The circular economy also promotes the extension of the life cycle of products and promotes the development and use of renewable energy sources, reduces the use of chemicals that prevent reuse and return to the biosphere, and contributes to the reduction of waste. Also, this model has both operational and strategic advantages and has significant potential in the economic, business, environmental and social spheres. In addition, there is a decrease in environmental pollution and resource dependence. The circular economy is aimed at promoting technical progress and innovative development. But there are still many barriers, including financial and economic, institutional, and technological barriers, which inhibit the transition to a circular economy.