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    Draft Law on Support and Development of Innovation Activities

    Analysis of the draft law:
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    Analysis of the explanatory note:




    Analysis of the draft Law of Ukraine “On Support and Development of Innovation Activity”

    Analysis of the draft Law of Ukraine “On Support and Development of Innovation Activity”

    Good day! My name is [Your Name], I am a lawyer with many years of experience in Ukrainian legislation. Today we will take a detailed look at the draft Law of Ukraine “On Support and Development of Innovation Activity”.

    1. Essence of the draft law

    The draft law aims to define the legal and economic foundations for supporting and developing innovation activity in Ukraine. It seeks to create favorable conditions for innovation, define the principles of state policy, and stimulate innovation activity.

    2. Reasons and necessity for adopting the draft law

    The author of the explanatory note emphasizes that Ukraine demonstrates weak positions in international ratings of innovation potential. The main problems are weak state institutions, an unfavorable environment for innovative business, limited financial system, and reduced spending on research and development. Obsolete legislation and the lack of a systematic approach to policy-making in the field of innovation make it necessary to adopt a new law.

    3. Main consequences of the draft law

    The draft law may have significant consequences for various stakeholders:

    • For legislators: The law will provide a new legal framework for the formation of state policy in the field of innovation, which will allow for more effective coordination of the efforts of various ministries and departments.
    • For experts: The law will create new opportunities for analyzing and evaluating innovation activity, as well as for developing recommendations for its improvement.
    • For business: The law aims to create favorable conditions for innovative business, in particular by providing state support, simplifying regulatory procedures, and protecting intellectual property rights. This may lead to increased investment in innovative projects, creation of new jobs, and increased competitiveness of Ukrainian enterprises.
    • For citizens: The law can positively affect the quality of life of citizens by promoting the development of new technologies and products, as well as improving educational and scientific opportunities.

    It is especially important that the draft envisages the recognition as invalid of the current Law of Ukraine “On Innovation Activity”, which indicates the intention to carry out a complete перезавантаження [reboot] of regulation in this area. Also, important is the emphasis on creating innovative ecosystems, which should ensure the rapid transformation of ideas into innovative products and services.
    Overall, the draft Law “On Support and Development of Innovation Activity” is an important step for stimulating innovation in Ukraine, but its successful implementation will require effective cooperation between the state, business, and scientific institutions.

    Analysis of other documents:




    Analysis of documents regarding the draft Law of Ukraine “On Support and Development of Innovation Activity”

    Analysis of documents

    1. List of acts of the Cabinet of Ministers and central executive bodies

    Position: The document is accompanying to the draft Law and determines the list of regulatory legal acts that need to be reviewed or adopted in case the Law is adopted. Thus, it supports the implementation of the draft Law.
    Main provisions:

    • The document determines that in order to implement the provisions of the draft Law, it is necessary to review or adopt a number of resolutions of the Cabinet of Ministers of Ukraine and orders of the Ministry of Education and Science of Ukraine.
    • Specific acts, responsible bodies (Ministry of Education and Science) and terms (within six months from the date of entry into force of the Law) for the implementation of these reviews/adoption are indicated.
    • The most important is the review of resolutions of the Cabinet of Ministers regarding the activities of technology parks, monitoring the implementation of technology park projects, and state registration of innovation projects.
    • It is important for business to know exactly which by-laws will be changed, as this will affect the regulation of their innovation activity.

    2. Draft Resolution of the Verkhovna Rada of Ukraine

    Position: The draft resolution proposes to adopt as a basis the draft Law of Ukraine “On Support and Development of Innovation Activity”. This means support for the draft law at the initial stage of consideration in the Verkhovna Rada.
    Main provisions:

    • It is proposed to adopt as a basis the draft Law of Ukraine “On Support and Development of Innovation Activity”.
    • The Committee of the Verkhovna Rada of Ukraine on Education, Science and Innovation is instructed to finalize the draft law taking into account the comments and proposals and submit it for consideration in the second reading.
    • Legislators should pay attention to the need to take into account comments and proposals to improve the draft law.

    3. Letter of the Cabinet of Ministers of Ukraine to the Verkhovna Rada of Ukraine

    Position: This letter is an accompanying document from the Cabinet of Ministers of Ukraine to the Verkhovna Rada, which submits the draft Law of Ukraine “On Support and Development of Innovation Activity” in the order of legislative initiative. This confirms the support of the draft law by the Government.
    Main provisions:

    • The Cabinet of Ministers of Ukraine submits the draft Law of Ukraine “On Support and Development of Innovation Activity” for consideration by the Verkhovna Rada.
    • The Minister of Education and Science, Oksen Vasyliovych Lisovyi, will present the draft Law in the Verkhovna Rada.
    • The text of the draft law, the draft resolution of the Verkhovna Rada, the explanatory note, the comparative table, and the list of acts are attached.
    • Legislators will receive a full package of documents for consideration of the draft law.

    4. Conclusion of the Main Scientific and Expert Department of the Apparatus of the Verkhovna Rada of Ukraine

    Position: The Main Scientific and Expert Department (MSED) generally supports the direction of the project to update legislation in the field of innovation activity, but expresses a number of comments and proposals regarding individual provisions. Thus, the position is critical, but with support for the general idea.
    Main provisions:

    • Many comments were made regarding terminology, in particular, regarding the definitions of “business angel”, “production process”, “innovation voucher”, and others.
    • Possible contradictions with current legislation are indicated, in particular, with the Law of Ukraine “On State Aid to Business Entities”.
    • Attention is drawn to the declarative nature of some provisions and the lack of specific implementation mechanisms.
    • The possible need for additional budget expenditures without proper financial and economic justification is indicated.
    • It is important for legislators and experts to pay attention to the comments of the MSED regarding terminology, coordination with other legislation, and financial justification.

    5. Conclusion of the Committee of the Verkhovna Rada of Ukraine on Education, Science and Innovation

    Position: The Committee recommends that the Verkhovna Rada include the draft Law on the agenda of the session and adopt it as a basis. This indicates support for the draft law by the relevant committee.
    Main provisions:

    • The Committee recommends that the Verkhovna Rada include the draft Law on the agenda and adopt it as a basis.
    • The Committee is instructed to finalize the draft law taking into account the proposals and amendments of the subjects of the right of legislative initiative and the conclusion of the Committee.
    • The necessity of taking into account Ukraine’s international legal obligations in the field of European integration is emphasized.
    • The Ministry of Education and Science of Ukraine supports the adoption of the draft law.
    • Legislators should take into account the comments and proposals of various bodies and scientific institutions when finalizing the draft law.

    6. Decision of the Committee of the Verkhovna Rada of Ukraine on Anti-Corruption Policy

    Position: The Committee concluded that the draft Law of Ukraine “On Support and Development of Innovation Activity” meets the requirements of anti-corruption legislation. This means a positive assessment of the draft law from the point of view of the absence of corruption risks.
    Main provisions:

    • No corruption-generating factors that could contribute to the commission of corruption offenses were detected in the draft act.
    • The Committee recommends adopting the draft law.
    • This is important for citizens and business, as it indicates that the law does not contain provisions that may promote corruption.

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