The Cascade-Circular Model of Innovative Transformation of Regional Economic Complexes: Fundamental Principles, Priorities, the Wartime and Post-War Challenges

Abstract

It is substantiated that the cascade-circular model of innovative transformation of regional economic complexes should be based on a combination of the cascade principle of attracting material resources in the reproduction process and the principle of maximizing closed cycles in product chains. It is determined that the cascade principle is a sequential transition from one phase of production to another, based on the priority of formation of value chains and features of extracting the resource value of primary and secondary raw materials; the principle of maximizing closed cycles in product chains is a principle that provides for the minimization of unit costs and losses of the material substance of raw materials on the basis of the integrated use of primary raw materials through the use of waste-free and low-waste technologies and the most complete utilization of secondary raw materials in order to maximize the value added in food chains. It is identified that the key point in the formation of the cascade-circular model of innovative transformation of regional economic complexes is the formation of the structure-establishing innovation core (a complex of types of production and economic activity with appropriate supporting subsystems), which will be differentiated in the context of economic regions of Ukraine, based on: the existing production and technical base of material production; the level of infrastructural arrangement; available and projected reserves of natural raw materials; scientific and scientific-technical potential; opportunities for establishing inter-regional cooperative relations; participation of the region in the national division of labor and in ensuring national security. It is substantiated that the cascade-circular model of innovative transformation of the economy of the regions of Ukraine should be aimed at more effective use of secondary material resources in the reproduction process and at increasing the assimilation potential as a basic prerequisite for the transition to the rails of low-carbon development.