Eastern European Conference of Telecommunications and Information Technology – EETC, started at 10:40 a.m. in conference hall 1 IEC on 12 November within the XVI-th International specialized exhibition of telecommunications and information technology «Information and Communications 2008».

EETC Conference 2008 is held under the support of the Ministry of Industrial Policy of Ukraine, the Association Wireless Ukraine, the Association of Information Technology of Ukraine, Association «Information Technologies of Ukraine» and several other government departments.

The conference was opened by the First Deputy of State Agency for Investment and Innovation Yan  Savchenko, who has highlighted the state of the sector and prospects for innovation development of Ukraine.

Vasily Shepel, President of Innovation Chamber of Ukraine has developed the same theme in his speech. Particularly, he noted that more than four years ago, Ukraine proclaimed an innovative way of development of our nation. This way nowadays is followed by highly developed countries, laying sterss on the intellectual life of their citizens. Such countries as China, India, Brazil and Russia also started to follow this way. Europe announced the plans to speed up the innovation development and achieve the U.S. level at the market of innovative products.

Throughout the world intellectual property is the most profitable product, giving, generally, excess profit both to a seller and a buyer. All highly developed and prosperous countries develop and compete, selling, generally, innovative products. Thus, the U.S.A., creating and acquisition of intellectual property at 85% sells innovative products, Japan -at 75%, Europe – at 55%.  While the share of Ukraine makes only 0.1%!

Discussion on the theme: «Is there any need in golden brains for the State?»

Many speakers talked about a number of laws aimed at protecting intellectual property, regulatory and scientific and technical activities and innovative development of the state. But, unfortunately, missing links in this chain of legislation do not allow running of the system that is used all over the world market of intellectual property.

Main defects that need correction

1. Intellectual property in our country still isn’t acknowledged as the good, with the price of its own. We do not possess its value that becomes the starting point for any trade in goods, including intellectual. The lack of qualitative legal framework prevents from organizing the domestic market of intellectual property and creates a convenient loophole for laundering of shadow capital. Lack of education in this sector and the post-Soviet mentality of our officials make it difficult to establish civilized relationships.

2. All stated above reasons concentrate in the so-called «human factor» phenomenon. This factor does not take into account the concepts of innovation development of Ukraine, which is now being discussed in social circles. This serious shortcoming is a result of its backstage origin. Rather than preserve the past shortcomings, it should be aimed at systematic unity of science, education, manufacturing and ecology.

3. Ukrainian orientation on and raw materials and transport industries considerably put brakes on innovation and resource development of the Ukrainian economy

Commodities complexes need primarily low-cost, low-skilled labor. In high-tech sector for already 15 years the pride and priority of our state is the standard, almost military «the usual»: rocket, aircraft, tank manufacturing and shipbuilding, which bring money, but not the complex development of the state. But even they are largely dependent on foreign science-intensive utilities.

The state does not pay enough attention to science and innovation, highly appreciated all over the world.

4. As it was in Soviet times, the state takes over the axiom that intellectual product may occur mostly in the public sector, especially in academic science, universities and research institutions. Such attitude may be acceptable when it goes about defense industries.

But in terms of innovative ways of developing the economy needs the invention and applied sciences with quick feedback. Focusing on just budget science to address such challenges is a serious mistake. The active development of the private sector through small business is of great importance, but unfortunately nowadays it is almost ignored by the state.

5. Today in our country the innovative potential is almost ignored and small non-state scientific and production receive no support. In the civilized world they are the main generators of ideas and are financed generally by the state or medium and large private firms.

According to our information, in Ukraine small non-state scientific and production companies are active generators and holders of a significant part (at least 30 – 50%) of know-how innovative products. Unfortunately, it seems as if the state has no need in such technologies.

6. An individual «inventor» who is not aimed at the employer, but at his own vocation, and especially needs the support at the state level has fallen from the «field of view» of the state.

He may be a designer, a scientist, a student, a pensioner, an unemployed. Taking into consideration the fact that all the groups stated above are not able to patent an invention at their own expense, it becomes obvious that they require direct state support. 

Otherwise the country will have to pay for our ideas, nicely wrapped by the foreign competitors.

7. Current legislation on intellectual property, science and even pension legislation, not only do not contribute, but also greatly hinder innovation in the country, putting in unequal conditions budgetary research organizations and universities on the one hand, and off-budget teams – on the other. For example, lifted operating in the 90′s of the conditions of competition for funding state programs, which could involve more than just private enterprises, but some scientists.

8. 50% discount on VAT and income tax, provided for by the Law of Innovation Activity, has never entered into force, and now is canceled. It ha actually crossed the essence and effectiveness of the Law. In addition, due to the cancelling of a 50% discount on VAT and income tax it became uninteresting to register as innovative projects. In the meanwhile the state while is losing information on the intellectual potential and opportunity to manage it. The brains of inventors are purchased for next to nothing, and their projects leave the economic fields of Ukraine.

Instead the epilogue

It should be noted that all mentioned above issues require immediate attention and action at the national level. Intellectual property requires a delicate approach if we want Ukraine to pass the regular test on its life-sustaining activity, initiated by the world financial crisis.

As Vasily Shepel has noticed, «the time has come not only to assert ones desire for freedom and justice, but also objectively evaluate the involvement of each of us into the economic development of the state. Indeed, the government of a democratic state is not possible without taking into account the viewpoints of others. For its effective development we need to maximize the potential of all its citizens, and, above all, their intellectual capacity.»

Actually the same theme – the theme of the importance of state support for innovation in the face of challenges posed by the crisis in its brief report cited and Ergun Birol, General Director of “Business Life”.

He gave a brief overview of the development of innovation in China, India and other developing countries that are now actively conquering markets and could be taken as a model to follow.