Economy of Ukraine
Published since September 1958

№ 10/2020

Ekon Ukr. 2020 (10): 63–86


УДК 330.341:336.5:338.45

JEL: L52; L65; O14; O32


1Institute for Economics and Forecasting of the NAS of Ukraine, Research ID :
OrcID ID :
2Ministry for Development of Economy, Trade and Agriculture of Ukraine, Research ID :
OrcID ID :


The evolution of the development of the German chemical and pharmaceutical industry from technology borrowing to endogenous innovations and becoming a global leader is shown. It is substantiated that the government of the country promoted the development of a new industry by increasing budget allocations for the training of scientific and industrial personnel; research subsidies; subsidies for transportation and raw materials. It is shown that the formation of large companies has provided economies of scale and accelerated development. The creation of specialized research institutes under the auspices of the government initiated public-private partnerships in research funding, industry associations helped mobilize the public to support the industry, and competent company managers and industry representatives together with prominent statesmen provided concerted action to strengthen its innovation potential. Cultivating the national consciousness that the purchase of German goods is the key to the welfare of the state has determined consumer preferences and has become a powerful stimulus to expand supplies to the domestic market. The introduction of high customs tariffs on finished medicines has provided protection for the new industry in its infancy. The close cooperation of banks with pharmaceutical companies has contributed to the implementation of investment and innovation projects and external expansion. The creation of cartels by chemical and pharmaceutical companies was an institutional response to the unprecedented phenomenon of industrialization and catching up in Germany. It is revealed that at the present stage the Government of Germany through national and regional programs continues to promote the development of technological and innovative potential of pharmaceuticals. The expediency of introduction of mechanisms of endogenization of production development of medicines and medical devices in Ukraine, and also expansion of sales in the domestic market through introduction of preferences at public purchases in the context of protection of essential interests of safety and health of the nation is proved.

Keywords:Germany; pharmaceutical industry; technologies; innovations; endogenous development; public policy; state aid

Article original in Ukrainian (pp. 63 - 86)
The article was received by the Editorial staff on July 17 , 2020


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