Possibilities and obstructions of Transcarpathian innovative potential development as factor of regional competitiveness

Abstract

Transcarpathian region has great possibility of forming the strong innovation potential because of its geographical location and the resulting cultural heritage. Transcarpathia is located on the border with the European countries; the region's population communicates with neighbours in Europe and it provides additional ideas and possible experience at the level of individual citizens, enterprises, and regions. Moreover, high migration activity of workers from Transcarpathian region to European countries allows migrants to master modern technologies and allows workers to form a working elite segment on regional labour market when returning home. Further, due to many historical events that did not pass Transcarpathia, local culture of the regional inhabitants is characterized by the following features as adaptability, mobility, creativity, and tolerance. These regional factors build the basis for the formation of creative, innovative capacity, which will provide a strengthening competitive position both among regions of Ukraine and in Europe. The results of the study allowed arguing that the innovation potential of Transcarpathian region does not allow the region to take its rightful place in the competitive field of Ukraine. The reasons for this situation are the factors of national, regional and micro-level obstructions. First, there is no effective functioning national innovation system, which will be a mega system of the regional systems. Second, there is no adequate funding, which is a necessary condition of innovation activity. Third, there are no levers of motivation for enterprises with innovative technologies or products in practice. The next reason is defined as the absence of risk management at the level of the state, the region, and within most companies.