Ostanina A. Economic and legal support of innovative nature of pharmaceutical activity

The paper analyses the domestic legislation concerning the national innovation system (NIS). It is substantiated that the reason for the unsatisfactory state of innovation management processes in the pharmaceutical market of Ukraine is the insufficient legal regulation of such activities and, as a consequence, non-compliance with state guarantees of innovation, which are enshrined in Art. 329 of the Commercial Code of Ukraine, as well as the lack of an effective system of incentives for such activities in general. It is proposed to supplement the Law of Ukraine «On Innovations» by a separate article 18-1 to support innovation in the pharmaceutical industry. In addition, it is proposed to introduce a new term "innovative medicinal product» into Art. 2 of the Law of Ukraine «On Medicinal Products". It is proposed to supplement the Law of Ukraine "On Foreign Economic Activity" with a provision to support domestic exporters and increase the competitiveness of Ukrainian pharmaceutical products in foreign markets, abolishing the strict deadlines for payments for export transactions for this type of products. The paper underlines the need for strong and effective intellectual property rights protection system as an integral part of the development of innovative activities in pharmaceutical sphere, as well as the need of creation of all necessary conditions for simulating and implementing innovations, including locally, inter alia via the use of the ‘open innovation’ business model