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RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS of Ukraine (KHARKIV, UKRAINE)

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Liburkina L. M.

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Development of Ukraine’s Industrial Sector in Conditions of Institutional-Constructive Uncertainty
Makovoz O. V.

Makovoz, Olena V. (2026) “Development of Ukraine’s Industrial Sector in Conditions of Institutional-Constructive Uncertainty.” Business Inform 5:297–305.
https://doi.org/10.32983/2222-4459-2026-5-297-305

Section: Industrial Economics

Article is written in Ukrainian
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UDC 330.341.1:658:338.45(477)

Abstract:
The article examines the theoretical and methodological foundations for the development of Ukraine’s industrial sector under conditions of institutional-constructive uncertainty. It is argued that the current state of industry is characterized by a combination of structural imbalances, technological gaps, low innovation activity, and an unstable institutional environment, which significantly complicates ensuring sustainable economic development. It is determined that institutional-constructive uncertainty has a dual nature: on one hand, it creates risks and increases transaction costs, and on the other hand, it creates opportunities for institutional changes, innovative transformation, and the formation of new models of economic behavior. The work systematizes theoretical approaches to studying uncertainty, innovation systems, and industrial development, including the conception of evolutionary economics, national innovation systems, cumulative causation, and institutional transformation. It has been proved that efficient management of industrial sector development requires moving from adaptive to proactive and exploratory management models, where innovation is a key component of strategic decisions. During the research, a multi-level model of institutional-constructive uncertainty and a four-block model of factors determining the development of Ukraine’s industry were created. It was found that the industrial sector is most influenced by military-economic risks, instability in the regulatory and legal framework, technological limitations, as well as external challenges related to European integration and the CBAM mechanism. It has been proved that financial instability, high capital costs, and cuts in corporate lending limit the possibilities for modernizing production and introducing innovations. At the same time, the low level of interaction between the government, business, and the scientific sector indicates the fragmented nature of the national innovation system and its insufficient ability to create cumulative development effects. The need to form a stable institutional environment, develop innovation infrastructure, modernize the production base, and integrate into global value chains is well-founded. It is concluded that ensuring the competitiveness of Ukraine’s industry in the context of postwar transformation requires implementing an innovation-driven management model focused on technological renewal, increasing the share of high value-added products, and strengthening the country’s economic resilience.

Keywords: industrial sector of Ukraine’s economy; institutional-structural uncertainty; evolutionary economics; national innovation systems; cumulative causation; institutional transformation; innovation-driven management model.

Fig.: 2. Tabl.: 1. Bibl.: 28.

Makovoz Olena V. – Candidate of Sciences (Economics), Associate Professor, Department of Economics and Business Administration, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)
Email: [email protected]

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