Instruments of State Support for the Startup Ecosystem: Experience of Central and Eastern Europe
Sytnik N. I.

Sytnik, Natalia I. (2020) “Instruments of State Support for the Startup Ecosystem: Experience of Central and Eastern Europe.” The Problems of Economy 2:55–62.
https://doi.org/10.32983/2222-0712-2020-2-55-62

Section: World economy and international relations

UDC 338.24

Abstract:
The article deals with analyzing the practices of state support for the startup ecosystem in countries of Central and Eastern Europe using the example of Poland, Estonia, Belarus, and Hungary. These countries have indicators of startup ecosystem development similar to those of Ukraine. However, they are characterized by significant government participation in the formation of the national startup sector. In recent years, Ukraine has made progress in developing its startup ecosystem, but the role of the state in this process remains minimal. The aim of the article is to study the level of development of national start-up ecosystems in countries of Central and Eastern Europe as well as instruments of state support for ecosystems in this region, which can be used by Ukraine to stimulate the development of its national start-up industry. The article provides a comparative analysis of Ukraine with other countries of Eastern Europe according to rankings of startup ecosystems, competitiveness and innovativeness of the economy, business conditions, and level of education. It is established that Ukraine has high positions in the rankings of start-up ecosystems. However, it lags behind other countries of the region in rankings of national economies. In most countries of Eastern Europe, the state is an important agent of the startup ecosystem. Using the examples of Estonia, Poland, Hungary, and Belarus, the instruments of state stimulation of start-ups are studied. They are developed, as a rule, as part of strategic programs for digitalization of the country, development of innovative entrepreneurship and high-tech industries. The article identifies the priority areas of state support for start-up ecosystems in these countries, namely, legislative initiatives aimed at liberalization of the conditions of activities of new entrepreneurial structures; public investment; development of human resources; creation of competence centers; media and event management.

Keywords: startups, ecosystem of startups, ranking of startup ecosystems, government policy on development of startups, tools of state support for startups, venture financing, fund of funds.

Fig.: 1. Tabl.: 1. Bibl.: 24.

Sytnik Natalia I. – Candidate of Sciences (Biology), Associate Professor, Associate Professor, Department of Management, National Technical University of Ukraine «Igor Sikorsky Kyiv Polytechnic Institute» (37 Beresteiskyi Ave., Kyiv, 03056, Ukraine)
Email: Natalia_Sytnik@ukr.net

List of references in article

“Global Startup Ecosystem Report 2018“. Startupgenome. https://startupgenome.com/
“Startup Ecosystem Rankings Report 2019“. Startupblink. https://report.startupblink.com/
“Startup investment and innovation in emerging Europe. East-west digital news Investigation“. https://ain.ua/2018/01/05/startap-landshaft-cee
Chazov, Ye. “Startap yak nova forma vedennia biznesu“ [Startup as a New Form of Doing Business]. Naukovi pratsi Natsionalnoho universytetu kharchovykh tekhnolohii, no. 52 (2013): 122-128.
Sytnyk, N. I. “Ekosystema startapiv yak skladova innovatsiinoi ekosystemy“ [The Ecosystem of Startups as a Component of the Innovation Ecosystem]. Biznes Inform, no. 8 (2017): 89-94.
Dub, A. R., and Khlopetska, S. B. “Dzherela finansuvannia startapiv ta mozhlyvosti yikh zaluchennia v Ukraini“ [Sources of Funding for Startups and Opportunities to Attract Them in Ukraine]. Sotsialno-ekonomichni problemy suchasnoho periodu Ukrainy. 2016. http://nbuv.gov.ua/UJRN/sepspu_2016_1_22v
Petrushenko, Yu. M., and Dudkin, O. V. “Kraudfandynh yak innovatsiinyi instrument finansuvannia proektiv sotsialno(ekonomichnoho rozvytku“ [Crowdfunding as an Innovative Tool for Financing Social (Economic Development) Projects]. Marketynh i menedzhment innovatsii, no. 1 (2014): 172-182.
Vasylieva, L. M. “Biznes-inkubatory yak chastyna infrastruktury pidtrymky maloho pidpryiemnytstva“ [Business Incubators as Part of the Small Business Support Infrastructure]. Derzhava ta rehiony: naukovo-vyrobnychyi zhurnal, no. 1 (2010): 80-87.
Paryzkyi, I. V. “Stan orhanizatsiino-infrastrukturnoho zabezpechennia zmitsnennia innovatsiino-tekhnolohichnoho potentsialu ekonomiky Ukrainy“ [The State of Organizational and Infrastructural Support for Strengthening the Innovation and Technological Potential of the Ukrainian Economy]. Visnyk sotsialno-ekonomichnykh doslidzhen, no. 1(62) (2017): 37-46.
Kurchenko, O. O. “Derzhavna pidtrymka startapiv u krainakh YeS: uroky dlia Ukrainy“ [State Support for Startups in EU Countries: Lessons for Ukraine]. Visnyk Instytutu ekonomiky ta prohnozuvannia. 2016. http://nbuv.gov.ua/UJRN/viep_2016_2016_10
Global Innovation Index 2019. https://www.globalinnovationindex.org/gii-2019-report
“Global Competitiveness Index“. World Economic Forum. http://reports.weforum.org/global-competitiveness-report-2019/competitiveness-rankings/
“World Bank“. Ease of Doing Business Rankings. https://www.doingbusiness.org/en/rankings
“United Nations Development Programme: Education Index 2019“. https://gtmarket.ru/ratings/education-index/education-index-info
“U21 Ranking of National Higher Education Systems 2019“. https://universitas21.com/sites/default/files/2019-04/Full%20Report%20and%20Cover.pdf
Shapoval, E. “Pribaltiyskiy startap. Estoniia prevratilas v evropeyskiy analog amerikanskoy Kremnievoy doliny“ [Baltic Startup. Estonia Has Become a European Analogue of the American Silicon Valley]. https://nv.ua/biz/publications/pribaltiyskiy-startap-estoniya-prevratilas-v-evropeyskiy- analog-amerikanskoy-kremnievoy-doliny-143323.html
“8 preimushchestv Estonii dlya startapa“ [8 Advantages of Estonia for a Startup]. https://www.start-business-in-estonia.com/estoniya/startup-v-estonii.html
Vlasenko, V. “Peremanit ili podderzhat? Polskiye venchurnyye fondy ishchut perspektivnyye startapy v Ukraine“ [To Lure or Support? Polish Venture Capital Funds are Looking for Promising Startups in Ukraine]. https://mind.ua/ru/publications/20195712-peremanit-ili-podderzhat-polskie-venchurnye-fondy-ishchut-perspektivnye-startapy-v-ukraine
Polish Development Fund. https://en.wikipedia.org/wiki/Polish_Development_Fund
“Kak v Polshe podderzhivayut innovatorov i predprinimateley, chtoby oni ne uezzhali iz strany“ [How in Poland They Support Innovators and Entrepreneurs So That They do not Leave the Country]. https://www.sb.by/articles/kak-vyrastit-startapy-na-svoey-zemle.html
Jaki, E., Molnar, E., and Kadar, B. “Characteristics and Challenges of the Hungarian Startup Ecosystem“. Budapest Management Review. 2019. file:///C:/Users/Admin/Downloads/CharacteristicsandChallengesoftheHungarianStartupEcosystem%20(2).pdf
“Cabinet Office of the Prime Minister (2016): Digital Startup Strategy of Hungary“. http://www.kormany.hu/download/2/4b/21000/The%20Digital%20Startup%20Strategy%20of%20Hungary.pdf
“Startap dzheday. Ctartap ekosistema Belarusi“ [Startup Jedi. Startup Ecosystem of Belarus]. https://medium.com/стартап-джедай/стартап-экосистема-беларуси-eae07041bff6
“Belorusskiy park vysokikh tekhnologiy“ [Belarusian High-tech Park]. https://ru.wikipedia.org/wiki/https://ru.wikipedia.org/wiki/%D0%91%D0%B5%D0%BB%D0%BE%D1%80%D1%83%D1%81%D1%81%D0%BA%D0%B8%D0%B9_%D0%BF%D0%B0%D1%80%D0%BA_%D0%B2%D1%8B%D1%81%D0%BE%D0%BA%D0%B8%D1%85_%D1%82%D0%B5%D1%85%D0%BD%D0%BE%D0%BB%D0%BE%D0%B3%D0%B8%D0%B9Белорусский_парк_высоких_технологий