Macroeconomic and taxation conditions of national innovation system of Ukraine

NIS is nowadays one of the most widespread tools of the analysis of factors influencing the creation, diffusion and adoption of innovations. Innovation is often more seen as the main driver for growth within economic and social systems. During the Soviet era, the national innovation system of Ukraine was somehow integrated within the Soviet Union’s system of innovation, though each republic had their production, research and development specialisation. Over last decades science and technology sectors of Ukraine underwent considerable changes in the bid to reallocate its scientific resources away from military towards civilian goals and to develop its internal capacity to foster innovations. Nonetheless the Ukrainian system of Innovation has performed very poorly. Ukrainian NIS failure reflects in the poor innovation performance of national firms. In the past two decades it became apparent that macroeconomic conditions and taxation are among the most important framework conditions which affected negatively the innovation performance of Ukraine.