Shatnenko K. Industrialization as a form of renovation of industrial capital.

The thesis is devoted to the study of renovation of industrial capital. It has been shown that the main features of this process are the renovation of technological base of production and the development of the labour power. The result of renovation of industrial capital is the labour productivity growth. It is an outcome of innovations. The mechanism which reflects the process of industrialization has been presented in the following way: the innovation gives an impulse to the transformation of industrial capital, while the intersectoral linkages provide the diffusion of changes through all sectors of industrial capital; the capital flow itself is induced by competition: intrasectoral competition has a stimulating effect on innovations, while intersectoral competition provides some necessary structural changes. There have been analyzed some theories which reflect industrialization in developed and developing countries. Keynesian theories prove to be quite sufficient in explaining the peculiarities of industrialization in developed countries. It was noted that the development theories which are based on Keynesian theories can be relevant only when there is availability of innovations, strong intersectoral linkages and competitive conditions in developing countries. The analysis of industrial capital in post-transition economy of Ukraine has shown that it lacks the development on a basis of innovations. Meanwhile, this kind of development is vital for sustainable economic growth. Regarding the state, specifics and development tendencies of domestic industrial capital, it has been proposed the industrialization strategy for Ukraine which is aimed at setting the ability of industrial capital to progressive development.