BCO311 Global Business

Global Index of Innovation 

The global innovative index refers to the ranking of the countries in the world as per the capability of innovation that can be supported by the country. The countries which are chosen for comparison in this paper are the countries of the UK and Ukraine. These countries vary in the index with a huge difference in rank. The country UK holds the fourth rank according to the innovation index of 2020 while Ukraine holds a rank of forty-five in the world. In Europe itself, the countries are also highly differentiated in their ranks. UK stands third in Europe while Ukraine ranks thirty which ensures that the global innovation index of the UK is better than Ukraine in different ways (Dutta, Lanvin, and Wunsch-Vincent, 2017). Further study regarding the strengths and limitations of these countries, displays that the countries show some similarities and differences in their growth and innovation. The similarities are explained as follows:

• Both countries share similar strength points in the outputs of technology and knowledge skills and contribute to the innovative development of the country. It is also analyzed that the creativity outputs of the countries are comparable and stand nearly equal grounds in both strength and weakness.
• The stability and political components affecting the institutions of these countries also similar and tend to act as a weakness in the innovative growth of the countries (Dutta, Lanvin, and Wunsch-Vincent, 2020). But the problems are found to be much deep-rooted for the institutions of Ukraine which affect the country seriously with respect to the UK.

The potential differences are listed as follows:

• The infrastructure of these countries vary largely as the infrastructure of Ukraine is considered as a weakness of the country with low energy usage and output (Index, 2020). But on the other hand, UK tends to have a strength regarding the various infrastructure of ICT and Environment performance. This acts to be a huge advantage for the UK.
• The availability of skilled labor is easy in both countries but there is a specific lead of Ukraine on the United Kingdom regarding the availability of teachers, funding, and environmental which acts as a strength in Ukraine while stands as a weakness for the UK and can affect the country in the long run.

Economic Openness Level 

The economic openness of any country refers to the exports or imports of any country.  It was analyzed from the study that the UK is higher than Ukraine in every aspect except that of human resource and skill. The United Kingdom is responsible for exporting a large number of products from machinery to solutions of information technology (Khalatur et al. 2019). These exports are able to affect the GDP of the country in a positive manner and help to develop an open economy level that is able to support the innovative inputs required for the progress of the country as compared to the other countries. Globalization of products has led to the popularity of the products exported by the UK and enhances the growth of the business index (Wang, and Shepherd, 2020). This is linked to the strength in areas of infrastructure and outputs in technology and creativity. On the other hand, it is analyzed that the business index of Ukraine is far less compared to that of the UK and also involves fewer export activities and more import activities. The country of Ukraine tends to import a huge number of devices or infrastructure for operating innovative businesses in the country. But the energy input of these devices is comparatively high and acts as a limitation for the innovative growth of the company (Scruton, 2020). To enhance the position of Ukraine in the world, the country must introduce innovative ways to develop new infrastructure which consume less energy and are more sustainable. This would solve the weakness regarding infrastructure and also enhance openness in the economy by initiating new export facilities to new countries. The innovative development of infrastructure would also help the company to experience a rise in the outputs of the company compared to the inputs (Haberl et al. 2020). A rise in the innovative index would directly have a positive impact on the GDP rare of the country and help the country of Ukraine to rise in the rank list at a faster compared to other countries in Europe.

Comparison of Evolving GDP

The GDP of any country plays a significant growth of the country. The study of GDP over the last ten years displays significant similarities and differences in both UK and Ukraine. A significant difference between the graph of GDP of the UK and Ukraine is that UK started from zero and increased to more than two trillion US dollars taking the UK to the top ten growing economies in the world (Galvão, and Kara, 2020). But in the case of Ukraine, the graph tends to start with more than fifty billion US dollars but did not seem to cross the two hundred billion-dollar mark. This seems to be a very confusing section in the GDP graphs of the two countries. There are also a few similarities that can be spotted among the two graphs in comparison. The first point is that both the graphs experienced a hike in the years 2010 and 2013. And similarly, a significant decline is spotted in the year 2017 in both cases (Luchko, 2017). The growth kept a hike to three trillion in 2014 for the UK and nearly reached one hundred and eight billion for Ukraine. Thus it can be stated that the opportunities and risks in both the companies were almost similar except in few specific parts where there were weaknesses in the country that affected the proper growth of Ukraine compared to the UK which reached a new level. Thus from the above discussion, it can be stated that the main weakness which affected the growth of Ukraine compared to the UK is that the companies in Ukraine did not adopt the concepts of globalization and online platform and was not able to form an extensive strength in infrastructure that was the very basic component of every industry. In the same market, UK had a strength in infrastructure which was able to export huge amounts of equipment and technology solution to many companies around the world and also started spreading at a global scale targeting a number of developing countries in Asia, America, and some part of Southern America as well. This huge scale of exports done by the UK posed a huge advantage to the sudden rise of the economy for the country of the UK.

Figure 1: GDP curve of UK

Figure 2: GDP of Ukraine

At the same time, Ukraine was not able to gather similar resources to develop profitable and low energy consuming infrastructure that was a significant weakness of the industries in the UK developing modern infrastructure and could have proven to be a great opportunity for Ukraine to reach new levels in their GDP growth (Mishchuk et al. 2020). This opportunity could have changed the scenario of the graph and could have raised the rank of Ukraine in the GII charts to somewhere near the United Kingdom. This can be started by analyzing the Index of Global Innovation as the graphs in these studies shows a clear sign that there is growth in GDP with respect to the introduction of innovation in the country. It was analyzed that innovative and sustainable ideas from 2015 were able to provide a hike in both UK and Ukraine. The human power of these countries also varied and played a significant role in their development (Podra et al. 2020). The study seems to prove that the conditions of students in Ukraine were much better than those living in the United Kingdom. But most of the renowned universities in the world are situated in the UK which tends to attract almost the best students from all around the world and enrich the industries of the UK with new and innovative inputs which are sustainable and able to provide the country a competitive advantage in the global market (Kovtun, Opalenko, and Ivanylova, 2019). The availability of a skilled and large workforce helps the growth of the UK to new heights compared to the country of Ukraine which was not able to cross the two hundred billion-dollar mark. Moreover, the market sophistication of these two countries was completely opposite two each other and a large number of investors were analyzed as strengths in the market of the UK which involved the weaknesses of the Ukraine innovation index.

Conclusion

Reference List

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Dutta, S., Lanvin, B. and Wunsch-Vincent, S., 2020. Global innovation index 2020. Who will finance innovation?

Galvão, A.B. and Kara, A., 2020. The Impact of GDP Data Revisions on Identifying and Predicting UK Recessions (No. ESCoE DP-2020-12). Economic Statistics Centre of Excellence (ESCoE).

Haberl, H., Wiedenhofer, D., Virág, D., Kalt, G., Plank, B., Brockway, P., Fishman, T., Hausknost, D., Krausmann, F., Leon-Gruchalski, B. and Mayer, A., 2020. A systematic review of the evidence on decoupling of GDP, resource use and GHG emissions, part II: synthesizing the insights. Environmental Research Letters, 15(6), p.065003.

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Khalatur, S., Stachowiak, Z., Zhylenko, K., Honcharenko, O. and Khalatur, O., 2019. Financial instruments and innovations in business environment: European countries and Ukraine. Investment Management & Financial Innovations, 16(3), p.275.

Kovtun, O., Opalenko, A. and Ivanylova, O., 2019. Assessment of the structural changes of the national economy of Ukraine based on the consistency. In SHS Web of Conferences (Vol. 65, p. 04002). EDP Sciences.

Luchko, M., 2017. Economy of Ukraine: The analysis of the innovative way of the development. Economics, Management and Sustainability, 2(2), pp.95-103.

Mishchuk, H., Bilan, S., Yurchyk, H., Akimova, L. and Navickas, M., 2020. Impact of the shadow economy on social safety: The experience of Ukraine. Economics & Sociology, 13(2), pp.289-303.

Pluhatyr, M., Patyk, L. and Kulyk, M., 2018. The economy of Ukraine: Directions of Development, Negative and Positive Trends. Baltic Journal of Economic Studies, 4(3), pp.211-215.

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Scruton, J., 2020. GDP monthly estimate, UK: January 2020. Office for National Statistics.

Wang, V. and Shepherd, D., 2020. Exploring the extent of openness of open government data–A critique of open government datasets in the UK. Government Information Quarterly, 37(1), p.101405.

Yaremenko, L.M., Makarchuk, I.M. and Yevtushenko, N.M., 2017. The debt component of financial safety of Ukraine in the situation of crisis events in the economy. Scientific bulletin of Polissia, 1(2 (10)), pp.120-126.

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