On February 11, 2025, following consideration, the Verkhovna Rada of Ukraine adopted as a basis in the first reading the Draft Law of Ukraine “On Support and Development of Innovation Activity” (Reg. No. 13715 dated August 29, 2025).

The document establishes a new modern model of state innovation policy. Its purpose is to create a comprehensive national innovation ecosystem, ensure clear rules of interaction for science, business, and investors, and introduce effective tools to support innovative solutions—from the idea stage to bringing a product to market.

What the draft law provides for

1. Harmonization with EU law and updating the conceptual framework

The draft law introduces comprehensive legal regulation of innovation activity in line with Ukraine’s European integration course. It proposes repealing the current Law of Ukraine “On Innovation Activity” and establishing a new regulatory foundation.

The document defines key concepts necessary for shaping modern state policy in the field of innovation, including: startup, business incubator, business accelerator, innovation cluster, spin-off company, center of research excellence, business angel, innovation hub, innovation ecosystem, innovation grant, innovation voucher, and others.

2. Institutional changes and clarification of responsibilities of central executive authorities

The draft law предусматривает institutional changes and the delineation of responsibilities among various state authorities, including the Ministry of Education and Science of Ukraine, the Ministry of Economy of Ukraine, the Ministry of Digital Transformation of Ukraine, the Ministry of Defense of Ukraine, and the Ministry of Health of Ukraine. This will help eliminate duplication of functions and strengthen coordination of state policy in the field of innovation.

3. Reduction of bureaucratic procedures

The draft law предусматривает abolishing mandatory registration and paid expert evaluations of innovation projects as a prerequisite for receiving state support. This approach simplifies access to support instruments and reduces administrative barriers for innovation initiators.

4. Definition of policy goals and principles for forming the innovation structure

The draft law defines the goals of innovation policy and the principles of interaction between the state, research institutions, universities, businesses, startups, and investors. It aims to create a system that covers all stages of the innovation cycle—from idea generation and research to scaling and commercialization.

Within this framework, science parks, innovation hubs, business incubators, accelerators, clusters, and other infrastructure platforms will interact.

5. Modern and clear instruments of state support

The draft law introduces new instruments to support innovation activity, including:

• preferential lending;
  
• innovation grants and vouchers;
  
• funding for innovation-oriented research;
  
• innovation partnerships.
  

Expected outcomes

Implementation of the draft law is expected to ensure:

• growth in the number of innovation-active enterprises;
  
• increased volumes of implemented innovative products;
  
• strengthened cooperation between science and business;
  
• formation of a modern innovation ecosystem aligned with European standards.
  

Adoption of the draft law as a basis represents a step toward establishing a systematic state innovation policy and creating conditions for the development of a competitive economy in Ukraine.

Source