Application of Marketing Tools in the Bioeconomic Sector

Abstract

This article presents a theoretical generalization and justification of conceptual provisions for the formation of a marketing mechanism for managing the development of the bioeconomy. Its main components and relationships to the management system are analyzed. The essence of the concepts of the “bioeconomy”, “marketing management”, and “marketing management mechanism” is revealed. It has been proven that the bioeconomy is considered the key basis of modern innovative directions for ensuring economic development. It is based on the widespread use of biotechnology and the application of biological renewable resources to produce products and energy, which are the basis for the implementation of bioeconomic processes in Ukraine and characterize the current state of its development. It is established that in modern conditions, the management of enterprises based on the principles of marketing management is of great importance. It is important to study the organization of marketing management as an innovative approach to managing the development of the bioeconomy, which will allow us to achieve optimal economic efficiency and a positive social effect. Primary attention is paid to the study of marketing management as an innovative approach to managing enterprises that are part of the bioeconomy system.

1. Introduction

The key basis for the development of Ukraine’s economy in modern conditions is the bioeconomy. Currently, the market economy is characterized by the active use of new innovative methods of production products and the expansion of its range. New knowledge and results of innovative activity have found their application in various spheres of the economy and social life. A significant number of the world’s countries are creating new models of innovative development, one of which is the bioeconomy [1].

In the scientific literature, the term “Bioeconomics” has two meanings: bioeconomics and bioeconomy.

• Bioeconomics as a science refers to certain early theories, including the following:

  -

  Bioeconomy (fish farming): studying the dynamics of living resources using economic models;

  -

  Bioeconomics (biophysical): the study of economic systems using the laws of thermodynamics;

  -

  Biological economy: studying the relationship between human biology and economics.

2.

Bioeconomy is a concept associated with the use of modern knowledge, the latest production technologies, and biological resources in human economic activity to restore the environment [2].

The basis of the raw material base in the bioeconomy is biomass, which, thanks to the use of modern technologies, can be used in such fields as agriculture, energy, pharmacology and medicine, the chemical industry, and bioengineering. Its main components are biotechnology, bioenergy, the production of organic products (OPs), bionics, and artificial photosynthesis [3].

The bioeconomy is closely related to the development of agricultural production, efficient use and processing of waste, renewable energy, and increasing energy efficiency. As a result, its development involves a transition to a new format of the technological system. In turn, the use of agricultural production of biomass for energy needs is becoming a promising direction for the basis of the bioeconomy [4].

In accordance with the EU strategy for the development of the bioeconomy, it is stated that this is a strategic, integrating, and interdisciplinary form of activity that covers the issue of energy obtained from renewable bioresources and production processes of such industries as the textile, paper, partly chemical, cosmetic, and pharmaceutical industries [5]. What is important in the formation of the bioeconomy is that it involves the development of the world economy. In the coming years, the world will see the creation of effective systems for the use of renewable biological resources [6].

One of the important tasks of ensuring the stable development of the country’s economy is the management of its natural resources. The development and use of biotechnologies contributes to ensuring food security and the production of a sufficient amount of renewable energy, which will improve the ecology and ensure the formation of a healthy and viable economy. Therefore, it occupies a decisive place in this process. In modern conditions, the most important problems of any company are its development, gaining market positions, and mastering competitive advantages in the long term. That is why improving the management of companies based on the principles of management and marketing, ensuring a strategic approach to the activities of companies with the help of marketing management (MM), is gaining special relevance [7].

The bioeconomy and the innovations created by it are a new strategy, the main task of which is to successfully solve the problems of sustainable economic, ecological, and social development of the country. In order for the country to fully realize the possibilities of the bioeconomy, a systematic approach to its development is necessary. Therefore, improving the management of enterprises based on the use of management and marketing principles, ensuring a strategic approach to the activities of enterprises, which is carried out with the help of MM, is of particular relevance. With this support, market orientation of enterprises and the integration of structural units of the enterprise for the realization of set goals and objectives are ensured. MM is considered as the process of planning and implementing the concepts of pricing, promotion, and distribution of ideas, goods, and services aimed at carrying out exchanges that satisfy individual and organizational goals. MM is an economic “compass”, in which enterprises move in the right direction. In this regard, the study of MM mechanisms, which are used in the activities of the world’s leading companies, becomes especially relevant [2].

It should be noted that MM is an innovative approach to enterprise management, which makes it possible to achieve optimal economic performance and a positive effect at the same time, reconciling the various interests of the participants. The use of MM not only influences the choice of enterprise strategy, but also, the obtaining of long-term competitive advantages, taking into account marketing opportunities, helping to implement a flexible response to changes in the marketing complex, taking timely measures to adjust strategies, and making effective management decisions regarding strategic marketing planning [8].

MM is the management of all enterprise activities based on marketing principles. Here, we are talking about the use of marketing as a management philosophy, when all divisions of the enterprise plan implement and evaluate their activities from the standpoint of marketing. MM includes the management of all structural divisions of the enterprise and its functions on the basis of marketing. This is management that is built on the principles of marketing, that is, when the consumer is at the center of its production and sales activities, and the marketing and management system uses all the necessary tools in order to satisfy the consumer’s needs in the best possible way, as well as achieving the desired result for itself [9].

MM is necessary in an enterprise primarily so that the enterprise is able to handle requirements and requests from its potential consumers. With such actions, the enterprise is able to ensure its effective activities in all areas, giving priority to the interests of the market over other interests of the activity [10].

An important stage in the implementation of MM in bioeconomy development management (DBE) is its perception by consumers. Thus, awareness of the need for the production of thermal and electrical energy, biogas, bioethanol, and other products from renewable energy sources (RES) occurs. One of these areas is the creation and implementation of organic agricultural production projects. It is the realization of a need that is met in a new way, but with the possibility of saving energy and reducing costs, which is more profitable compared to existing technology. In this context, it becomes necessary for Ukrainian enterprises to apply a qualitatively new approach to the management of production and the sales of goods manufacturers [8].

The MM system has the capacity to develop bioenergy and the organic production of products and strengthen their positions on the market [7].

Transformational processes in the economy of Ukraine require new scientific approaches to solving current problems, taking into account the needs of society and the specific requirements of certain market segments based on an effective marketing mechanism. The marketing aspect of enterprise management today is an extremely important task for national manufacturers and entrepreneurs, because in view of the current state of the economy, the task of a comprehensive focus on studying the laws of the market using the principles of the marketing mechanism of management as a basis for conducting business becomes useful.

Interpretation of the “mechanism” is considered to be a sequence of processes consisting of stages that, in turn, involve certain procedures and tools. At the same time, the completion of the previous stage determines the transition to the next stage [10].

The purpose of this study is to determine the conceptual interpretation of MM and justify the need to implement a marketing mechanism for managing the DBE in Ukraine.

The theoretical and methodological basis of the study consists of general scientific and economic methods used in marketing activities. The information base of the study consists of regulatory and legislative acts of state administration bodies, materials of the Federation of the Organic Movement of Ukraine, and reports from the State Agency for Energy Efficiency and Energy Saving of Ukraine.

The scientific novelty of the obtained results of the study on the DBE lies in determining the objectives and tools, which are provided by the corresponding process of the MM mechanism.

2. Materials and Methods

The presented article describes the theoretical and practical principles of marketing management development. The use of a monographic research method allowed us to analyze scientific literature on the process of forming a marketing mechanism for managing the development of the bioeconomy.

An important component is the production and use of RES. In current conditions, the use of renewable energy significantly increases the security of energy supply and improves the social and economic situation. This article uses the official definition of the bioeconomy published in the European Commission Strategy “Innovation for Sustainable Growth of the Bioeconomy for Europe”, developed in 2012, which defines the bioeconomy as an economy that uses biological resources from the land and sea, as well as waste, including food, as inputs into industry and energy production. It also covers the use of biological processes for green industries [11]. This strategy aims to ensure the development of the bioeconomy [12].

The strategic directions of bioeconomy development in Ukraine are RES, biofuels, and environmentally friendly products. Therefore, the bioeconomy can help create an economy that is less dependent on non-renewable resources, covers closed cycles of processing, including secondary, and pollutes the environment less. Monographic methods allowed us to analyze scientific works of scientists on the essence of the bio-oriented economy, MM, and the bioeconomy. An analysis of the bioeconomy policy in the G7 group shows that in recent years, the bioeconomy has become an important component not only of innovation, but also of economic policy in these countries. Most involve measures to promote technological innovation, economic growth, environmental sustainability, and resource efficiency [2].

In this article, the essence of the concept of the “bioeconomy”—which is relatively new—and its content is the subject of debate and was investigated using the abstract logical method. The article describes scientists’ definitions of the “bioeconomy”. There are other existing definitions, but all of them are based on the use of renewable resources and the production of new bioproducts based on the application of biotechnology. The actual definition of the essence of the concept of the “Bioeconomy” is proposed as “An economic strategy aimed at the production and processing of biological raw (biomass) a new (biofuel, food products), based on the application of biotechnology, while simultaneously minimizing the negative impact on the environment” [2]. Conclusions and recommendations were made regarding the effective implementation of a marketing mechanism for managing the DBE processes.

The conducted analysis of the essence of the various definitions of the concepts of “marketing management” and “marketing management mechanism” gives rise to a significant number of debatable issues. Therefore, in each individual case, all available points of view were analyzed, and it was found that all definitions focus on marketing and management tools and their interaction. In this study, the author offers his own understanding of the “marketing mechanism for managing the development of the bioeconomy”, which is based on innovations, technologies, and environmental protection, the implementation of which is ensured by a system of management tools. The conceptual definition of essence is described.

Using the modeling method, based on the conducted research of bioeconomic processes in the economy of Ukraine, a “Conceptual Model for the Formation of a State Strategy for Bioeconomic Development on the Principles of Smart Specialization” was developed, which is aimed at creating a more innovative, resource-efficient, and competitive economy. The methodological components of the development of the “Smart Specialization Strategy” are presented.

The task of MM is the timely identification of market needs based on the mobilization of the actual and potential capabilities of the enterprise and their satisfaction. The tasks of MM are achieved by implementing certain procedures of the MM process. Considering the structure of the MM mechanism process, marketing MM is proposed, which reflects and characterizes the constituent elements of its implementation.

Using the method of analysis and synthesis and materials from statistical surveys of the International Federation of Organic Agriculture, a study was conducted on the development of the organic sector, which is particularly important and promising for domestic farmers, consumers, and the state as a whole, especially in the context of ensuring food security, healthy nutrition, and environmental preservation, which is a positive factor and contributes to the development of bioeconomic processes in Ukraine. An analysis of this shows that in recent years there has been a decrease in agricultural land on which certified organic production is carried out, the number of organic market operators, and manufacturers. The official materials of statistical reviews of the International Federation of Organic Agriculture Movements (IFOAM) confirms that in 2018, 510 organic operators were registered in Ukraine, and in 2022 there were 462 of them, and the total area of agricultural land on which organic production is carried out decreased from 429,100 hectares in 2018 to 263,619 hectares in 2022. Also, in 2022, sales of OPs decreased both in foreign and domestic markets. The large-scale war in Ukraine has had a great influence on this significant decrease [13,14,15].

The production and use of RES is an important component of the bioeconomic direction. In current conditions, the use of renewable energy significantly increases the security of Ukraine’s energy supply, improving the social and economic situation [4]. An analysis conducted based on materials from the Ukrainian Wind Energy Association and the National Energy and Utilities Regulatory Commission of Ukraine showed that in 2022, the cumulative capacity of renewable energy increased by 106.6 MW, excluding home solar power plants, of which new wind power capacity was 81.6 MW, new biopower plants were 8.8 MW, new solar power plants were 15 MW, and new hydropower plants were 2 MW. According to the Ministry of Energy, the installed capacity of solar power plants in private households in Ukraine at the end of the third quarter of 2022 was 1385 MW. According to the review, by the end of 2022, the total installed capacity of renewable energy in Ukraine reached 9.94 GW [16].

According to the Ministry of Energy of Ukraine, despite the overall stagnation in the development of industrial renewable energy, small-scale distributed generation continues to develop, although, naturally, not at the same pace as before the start of the active phase of hostilities. In the first three quarters of this year, 6.5 thousand new installations with a total capacity of approximately 180 MW were built. According to the Ministry of Energy, at the end of 2021, there were 44,888 solar installations in private households in Ukraine operating under the “green” tariff model. In September 2022, their number was 51,414 units [17].

By implementing the resolution of the Cabinet of Ministers of Ukraine, dated 23 December 2021, No. 1460 “On the implementation of energy management systems”, Ukraine embodies a modern European tool for the implementation of energy efficiency policy. The year 2022 was when authorities and subordinate enterprises began the work of implementing energy management [18].

Implementation provided by Regional Development defines countries in general. Here, not only is financial support important, but so is technical regulation, the creation of incentives for the formation of bioeconomy industries, the construction of the necessary technological infrastructure, and the creation of demand for products [19].

3. Results

The issue of the DBE is one of the most relevant scientific studies of socio-economic policy. The development of the bio-oriented economy across the national economies of EU countries and other countries of the world is of particular importance in the modern context of the development of the agricultural sector [20].

The priority directions of the bioeconomy are the creation of prerequisites for the economical use of natural resources, the minimization of environmental risks, the spread of biological agriculture, and the use of energy-saving technologies. The DBE supports this.

For Ukraine, the problem of implementing bioeconomic measures is quite urgent, as it will allow the creation of savings. This reorientation of the spread of biological agriculture and its use simultaneously affects the life of the population. The strategy taken as a basis, with the help of modern technologies, will allow the economy to balance out in the long term.

The bioeconomy includes all economic activities related to the use of biomass and the optimization of the bioeconomy. However, it should be noted that the literature on bioeconomy typologies is still in its infancy [12].

The bioeconomy is a new emerging paradigm in which the creation, development, and activation of economic systems based on the sustainable use of renewable biological resources in a balanced way is rapidly spreading throughout the world. The bioeconomy builds bridges between biotechnology and the economy, as well as between science, industry, and society [21].

The bioeconomy is based on biomass and biotechnologies. The EU Directive defines biomass as the biodegradable fraction of products, waste, or residues of biological origin from agriculture, including plant and animal matter, forestry, and related industries, including fisheries and aquaculture, as well as industrial and municipal waste of biological origin [22]. It should be noted that the agro-industrial resource is becoming a leading strategic bioresource, as biomass from products produced in the agricultural sector can provide Ukraine with new opportunities to ensure sustainable development based on the production of cheap, environmentally safe bioenergy products, due to the effective use of agrobiomass [23].

The bioeconomy, as a new concept, is connected to the use of modern knowledge and technologies in human economic activity to restore the environment. The development of a bio-oriented economy is of particular importance for the development of the agricultural sector. The term “bioeconomy” is relatively new, and its meaning is subject to debate. There are several existing definitions, but all of them are based on the use of renewable resources and the production of new bioproducts based on the application of biotechnology (

Table 1. Scientists’ definitions of the “bioeconomy” (summarized by the authors).

Author	Definition
Gawel E., Pannicke N., Hagemann N. (2019), FRG [24]	The bioeconomy is a new resource base for production and consumption, based on new bio-raw materials and the production of new bio-products with the help of innovative engineering.
Hausknost D., Schriefl E., Lauk C., Kalt G. (2017), Austria [25]	The bioeconomy is an economy based mainly on biogenic, instead of fossil, resources and is associated with a vision of “green growth” and the advancement of biotechnology, which forms a new industrial perspective.
Vogelpohl T., Töller A. (2021), FRG [26]	The bioeconomy is a set of activities that create, produce, develop, maintain and use biological products and processes.
Tkalenko, S. [27]	The bioeconomy is the basis of the sustainable production and transformation of biomass into a range of food, health, fiber, and industrial goods and energy.
Sheppard, A, (2011), [28]	The bioeconomy includes all economic activities relating to the invention, development, and production of particularly non-food products and processes based on biological resources.
Perišić, M. (2021) [29]	The bioeconomy aims to decrease reliance on fossil fuels, preventing or reducing climate change and eliminating insecurity and efficiently using resources; however, fierce controversy exists over conceivable pathways to accomplish these objectives.
Wohlgemuth, R.; Twardowski, T; Aguilar, A, (2021) [30]	The bioeconomy, bringing together bioresources, biotechnology, ecosystems, and the economy, has emerged as an attractive top-level political concept for creating, developing, and revitalizing economic systems worldwide by making use of renewable biological resources in a sustainable way.
Kucher O.V., 2021 [2]	The bioeconomy is an economic strategy aimed at the production and processing of biological raw materials (biomass) for the production of a new product (biofuel, food products), based on the application of biotechnology, while simultaneously minimizing the negative impact on the environment.

Source: own elaboration.

).

To form a strategy for the development of Ukraine’s bioeconomy, it is necessary to determine its priorities, innovations, and RES. The bioeconomy is based on the development of organic production and renewable energy, which are its important components [31].

Organic production plays a significant role in the development of the bioeconomy. Organic production is a certified activity related to the cultivation of agricultural products and animals in compliance with strict legislative, marketing, and labeling requirements. Ukraine holds significant potential for development in this area due to its fertile soil, favorable climate, large areas of agricultural land, and ancient agricultural traditions [32].

According to the definition of the International Federation of Organic Agriculture Movements (IFOAM), “Organic agriculture is a production system that supports the health of soils, ecosystems and people. It depends on ecological processes, biological diversity, and natural cycles specific to local conditions, while prohibiting the use of harmful resources that cause adverse consequences. Organic agriculture combines tradition, innovation, and science to improve the state of the environment and promote the development of fair relationships and an adequate standard of living” [33].

Organic production and organic products are part of a holistic agricultural management system that takes into account and optimizes all aspects of growing plants and animals in order to obtain stable yields with minimal negative impact on the environment. It is based on the following basic principles:

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Avoidance of the use of synthetic fertilizers and plant protection products. Instead, compost, green manure, manure, and biological methods of pest and disease control are used.

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Minimal soil cultivation, the use of crop rotation to preserve natural fertility and prevent erosion. Mulching, green manure, and mechanical weeding methods are actively used.

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Organic production in livestock farming is not just about providing proper conditions for maintenance, but as close to natural ones as possible, feeding with full-fledged organic feed, and focusing on disease prevention instead of antibiotic treatment.

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Clear separation of time and space in the processes of production and storage of different types of products in order to avoid mixing and contamination.

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Categorical prohibition of the use of GMOs and their derivatives.

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Support for biodiversity, planting of forest protection strips, and the preservation of natural ecosystems on the territory of the farm.

In addition, organic products are the result of crop production, animal husbandry, and the food industry, which have received the appropriate certificate. According to Ukrainian legislation, at least 95% of the ingredients must be of agricultural origin obtained through certified production. At the same time, they should not contain synthetic flavors, dyes, or preservatives. The main advantages of organic products are their environmental safety and higher quality and taste properties compared to those of traditional agriculture. Such vegetables and fruits contain more vitamins, minerals, and antioxidants, meat and milk contain complete protein, and cereals and legumes retain their natural taste and aroma [32].

The organic movement in Ukraine originated in the late 1990s, when the first enthusiasts began to implement ecological management methods and look for sales markets. However, for a long time, this sector developed spontaneously, without an appropriate legislative framework and state regulation.

An important milestone was the adoption in 2013 of the Law of Ukraine “On the Production and Circulation of Organic Agricultural Products and Raw Materials”, which laid the legal foundations for the functioning of this market. However, this law turned out to be imperfect and insufficiently harmonized with European standards.

The necessary changes took place in 2018, when the new Law of Ukraine No. 2496-VIII “On the Basic Principles and Requirements for Organic Production, Circulation, and Labeling of Organic Products” was adopted. This document establishes clear and understandable rules of the game in this market, adapted to EU standards.

In particular, the law defines the following:

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Basic terms and concepts in this field;

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Requirements for growing plants and animals and manufacturing food products and feed;

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Labeling rules, including the introduction of a single national logo;

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Certification, inspection, and supervision procedures for operators;

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Measures of state support and stimulation of the sector;

-

To implement the provisions of the law, the government has approved a number of bylaws, including the following:

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Detailed rules for organic production and circulation of organic products (CMU Resolution No. 970 of 23 October 2019);

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The procedure for certification of organic production (CMU Resolution No. 1032 of 21 October 2020);

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The procedure for maintaining the register of operators, certification bodies, and organic planting material (CMU Resolution No. 87 of 12 February 2020);

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The requirements for substances that are allowed to be used in the organic production process (Order of the Ministry of Economy No. 1073 of 09 June 2020).

The adoption of special organic legislation has created the necessary regulatory framework for the sustainable development of this sector and the formation of a civilized market in Ukraine. This industry has become more attractive and understandable for investors, farmers, and consumers. The state, recognizing the value of organic agriculture for environmental protection, national health, and rural development, is implementing measures to support certified producers. In particular, compensation of up to 30% of the cost of obtaining the necessary documents, purchasing permitted plant protection products, fertilizers, seeds, and feed is provided. Organic farming is included in the priority areas that have access to budget subsidies and preferential lending [32].

The following crops are grown organically in Ukraine:

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cereals (wheat, barley, corn, millet);

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legumes (peas, soybeans, chickpeas, lentils);

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oilseeds (sunflower, rapeseed, flax, pumpkin);

-

berries (strawberries, raspberries, blueberries, blackberries);

-

fruits (apples, pears, plums);

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vegetables (tomatoes, peppers, cucumbers, carrots, cabbage);

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nuts (walnuts, hazelnuts);

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grapes;

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medicinal plants.

They also produce dairy and meat products, eggs, and honey. However, the range of organic products in Ukraine is not yet wide enough. The bulk of the products produced are exported. The transition to organic production in Ukraine requires an integrated approach, but it opens new prospects and opportunities for development. Certified products are of interest to domestic and international markets, which allows for increased profits and greater competitiveness. The transition from traditional agriculture is a serious step that requires appropriate knowledge, resources, and perseverance. But in the long term, such efforts pay off in the form of better soil fertility, product quality, human health, and the environmental benefits. Organic production is positioned as more sustainable and efficient in terms of rational use of natural resources [33].

The main principles and requirements for organic production, circulation, and labeling of organic products; the principles of legal regulation of organic production, circulation and functioning of the organic product market; the legal basis for the activities of central executive bodies; organic product market entities; and directions of state policy in these areas are determined by the adopted Law of Ukraine [34].

To determine what organic products are, since 2019, a single state logo has been introduced in Ukraine for labeling organic products. This is a combination of the inscription “ORGANIC PRODUCT” and a graphic image of two intersecting circles forming a letter. The use of the logo is mandatory for certified products and guarantees their compliance with the requirements of the legislation [32].

Globally, organic production, as a separate type of business, began with a small number of farmers who produced pure natural products for a certain circle of their traditional consumers. Over the past 80 years, it has turned into a powerful international process that includes not only the production of agricultural products, but also a strictly controlled method of preservation, processing, transportation, and sale. The experience of countries with developed economies shows that the sphere of organic agro-industrial production is attractive for investment, since there is always a stable demand for such products, which does not tend to decrease, and organic products themselves never become “technically and technologically obsolete”, which is confirmed by the evolutionary process of economic development [35].

World trends show that, from year to year, the volume of consumption of organic products is increasing. This indicates significant popularization of this group of goods around the world, which is caused not only by concern for consumers’ own health, but also by concern for the environment. When characterizing the production of safe food products, it should be noted that in Ukraine, producers began to consciously engage in organic production in the late 1990s. The organic market in Ukraine is constantly developing. Due to the size of the country, the availability of agricultural land with a large amount of fertile soil, geographical location, and proximity to potential international buyers, Ukraine has favorable conditions for organic agriculture. Actively developing the domestic market, the country is increasingly asserting itself in the international market of organic products, increasing the range of products offered and the geography of supplies [36].

According to research by the Federation of the Organic Movement of Ukraine, since the beginning of the 2000s, there has been a stable annual growth of the domestic consumer market for organic products. Most Ukrainian organic farms are located in the Kyiv, Odessa, Kherson, Poltava, Vinnytsia, Zakarpattia, Lviv, and Zhytomyr regions. Their specialization is focused on growing legumes, fruits, vegetables, and berries.

Official IFOAM statistical surveys confirm that, while in 2018, there were 510 organic operators registered in Ukraine, in 2022, there were 462 of them left, and the total area of agricultural land on which organic production is conducted decreased from 429,100 hectares in 2018 to 263,619 hectares in 2022. Also, in 2022, sales of organic products decreased both in foreign and domestic markets.

The decline in organic production indicators has been significantly influenced by the large-scale military invasion of Ukraine in February 2022 [13,14,15,37].

According to the operational monitoring data of the Ministry of Agrarian Policy and Food of Ukraine, collected from foreign certification bodies that certified organic production and the circulation of organic products in Ukraine, as of the end of December 2023, the total area of land certified according to a standard equivalent to the EU organic legislation and the US National Organic Program (NOP) amounted to 471,176 hectares, and the number of operators reached 481 (in particular, 383 agricultural producers). The area of agricultural land allocated for organic production in 2023 increased to 1.44% of the total area of agricultural land in Ukraine.

In 2023, the domestic market for organic products in Ukraine began to stabilize after a significant decline in 2022, and sales volumes increased by 15.6% compared to 2022. During that year, a total of 7257 tons of organic products of domestic production were sold for UAH 982 million (

Table 2. Dynamics of organic production development in Ukraine [13,14,15,37].

Years	Total Area of Organic Agricultural Land, ha	Number of Organic Operators, Units	Organic Product Sales
			Foreign Market		Domestic Market
			Tons	Million USD	Tons	Million USD
2018	429,100	510	390,000	157	6700	21
2019	467,980	617	469,000	189	7350	24
2020	462,225	549	332,000	204	8778	26
2021	422,299	528	261,000	222	9780	33
2022	263,619	462	245,600	219	6280	17
2023	471,176	481	189,000	129	7257	27

). Ukrainian suppliers of the local market have demonstrated the potential for recovery and growth, especially in 2023, when demand was observed to revive. The main channels for the sale of organic products in Ukraine remain supermarket chains and online stores [37].

According to the results of a study on the organic market of Ukraine, conducted by the certification body “Organic Standard” in partnership with Organicinfo.ua with the support of Switzerland, in 2023 there was a decrease in the export of organic products. The total export volume amounted to 189 thousand tons for USD 139 million (Table 2). During 2023, Ukraine exported organic products to 29 countries around the world, with the Netherlands, Austria, and Germany among the leaders. Corn, soybeans, and wheat were the most exported products among the 59 organic goods. A total of 99% of these products went to European countries, with 92% going to EU countries in particular.

Ukraine is expected to increase its export volumes thanks to the active participation of Ukrainian exporters of organic products in international food industry trade fairs, such as BIOFACH (Nuremberg, Germany), SIAL (Paris, France), ANUGA (Cologne, Germany), and the Middle East Organic and Natural Products Expo (Dubai, UAE). There are already initial successes; in particular, as a result of participation in BIOFACH 2023, Ukrainian companies signed contracts worth a total of EUR 3.5 million, and at ANUGA 2023, agreements worth EUR 2.8 million were reached. Some companies have established supply chains to China, Japan, and the United States. Such achievements indicate that international exhibitions are an effective tool for promoting exports, creating the image of Ukraine as a producer of quality organic products, and establishing business contacts for Ukrainian exporters [37].

Financial support for organic producers during the war is critical to maintaining production, implementing environmentally sustainable practices, rebuilding damaged infrastructure, and ensuring food security in times of economic instability. Shortly after the start of the full-scale Russian invasion of Ukraine, the Emergency Assistance for Organic Agriculture in Ukraine program was launched, initiated by the German Future Fund for Agriculture and the German–Ukrainian Cooperation in Organic Agriculture (COA) project. The financial assistance received made it possible to support Ukrainian organic farms in 2022 and 2023. New contributions in 2024 were additionally directed to help about 130 small and medium-sized organic farms. Support, as before, was provided within the framework of a joint initiative of the German “Fund for the Future of Agriculture”, the project “German-Ukrainian Cooperation in Organic Agriculture”, financed by the German Ministry of Agriculture, and the Federation of the Organic Movement of Ukraine, which became a partner and a conduit for this assistance directly to Ukrainian organic farms during these years. As part of the support, 55 organic farms received funding to cover the costs of obtaining an organic certificate, which is issued by an accredited certification body, in accordance with EU and Ukrainian standards [38]. In December 2024, during the second round of support, financial assistance was provided to another 75 organic farms. These funds were used to repair war-damaged buildings, compensate for lost income, support refugees and purchase important equipment for organic food processing. Financial assistance of about EUR 265,000 was distributed to support 130 small and medium-sized organic farms. In total, since 2022, about EUR 950,000 has been raised through the “Emergency Assistance to Organic Agriculture in Ukraine” program, which has helped 235 Ukrainian organic farms over the past three years.

Financial support helped organic producers not only cover the costs of certification and restoration of war-damaged buildings and equipment, but also to retain jobs, compensate for losses, purchase necessary equipment for agricultural production and ensure the continuation of the production process in conditions of war and economic instability, which, in turn, contributed to the preservation of organic agriculture in Ukraine. Each contribution in the form of financial assistance is not only material, but also moral support. This indicates that the international community and society support Ukrainian producers, which is an incentive for them to continue working during the war [38].

Characterizing the marketing mechanism for managing the development of the bioeconomy within the framework of the GRAINS Project—Greening Agrifood in Social Economy “New opportunities for green transformation for agricultural producers”, attention is paid to the use of marketing technologies to popularize organic production. It is noted that marketing technologies play a key role for any business, and especially in forming demand for certain products, creating trust in them and changing consumer habits. It is marketing technologies that help explain the value of organic products through the correct positioning (“health is an investment”), advantageous offers (promotions, discounts, loyalty programs), and incentives for trial use (tastings, free samples). Domestic producers, their representatives, and associations should more actively use various marketing elements to popularize organic production and organic products. In particular, the following positions are proposed:

• Digital marketing and targeted advertising:

  -

  Social networks (Facebook, Instagram, TikTok, YouTube)—creating visual content, video reviews, success stories of farmers.

  -

  Contextual advertising (Google Ads, Meta Ads)—attracting potential buyers through search queries “buy organic products”.

  -

  Influence marketing—cooperation with bloggers who promote a healthy lifestyle.

2.

Content marketing and educational campaigns:

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Maintaining blogs, articles, and videos on the topics: “Why organic?”, “How to distinguish real organic?”

-

Creating podcasts or webinars with experts in organic farming.

3.

Branding and positioning:

-

Using certification according to organic standards and appropriate labeling (for example, “Organic”, “Organic product”) to increase trust.

-

Packaging that tells the story of the brand and its environmental mission.

4.

Gamification and loyalty programs:

-

Applications or sites with rewards for purchasing organic products.

-

Challenges on social networks on the theme of “week without chemicals in food”.

5.

Artificial intelligence technologies and personalization:

-

Analysis of consumer behavior and product recommendations based on their preferences.

-

Chatbots and virtual consultants for selecting organic products.

6.

E-commerce and mobile applications:

-

Online stores with organic products, subscription to farmer’s baskets.

-

Applications for tracking the origin of products (scanning a QR code with company information).

Using these technologies and other well-known marketing tools, it is possible to significantly increase consumer awareness and stimulate demand for organic products.

It is important to remember that marketing is not just advertising, but a strategic tool that shapes the market for organic products. It helps people realize their value, encourages them to buy, and creates trust in brands that care about consumer health and the environment [39].

To support the development of organic production in Ukraine, the Organic Sector Grants Program has been launched, funded by Switzerland and implemented within the framework of the Women’s Entrepreneurship in the Organic Sector (WEOS) project. It is implemented by the Green Dossier Information Center in partnership with the Organic Initiative NGO and the Swiss–Ukrainian Program Value-Added Trade in the Organic and Dairy Sectors of Ukraine (QFTP). The grant program is implemented by the Research Institute for Organic Agriculture (FiBL, Switzerland) in partnership with SAFOSO AG (Switzerland). The goal of the program is to support Ukrainian organic producers and promote the further development of the organic market, increasing trade in Ukrainian organic products with higher added value on the domestic market. The grant program will support about 30 applications for a total of 150,000 Swiss francs and companies will be able to implement the planned projects starting from January 2025 [37].

Interest in safe food products in Ukraine is constantly growing. Organic producers are increasingly interested in the domestic market, investing in processing, packaging, branding of products, and developing new sales channels. A culture of responsible consumption is gradually forming, especially among the younger generation and people with high incomes.

-

However, factors that hinder organic production in Ukraine remain, outlined here:

-

Low purchasing power of the population and willingness to pay more for organic products;

-

Insufficient awareness of consumers about organics, inability to distinguish from conventional products;

-

High share of imported goods, especially processed ones;

-

Limited range of domestic offers and their irregular availability on sale;

-

Weak development of infrastructure and logistics, which leads to higher prices [32].

Assessing the prospects for the development of organic production in Ukraine, it should be noted that organic agriculture is a priority area for Ukraine. The demand for such products on the world market is constantly growing. Currently, Ukraine mainly exports raw materials, but processing is actively developing, which allows the production of goods with added value. For the further development of the sector, state support, the creation of infrastructure, and consumer information are necessary. There are already programs that provide compensation for the costs of certification and the purchase of permitted protective equipment and fertilizers, and there are also grants. A reliable partner for farmers and suppliers in the field of organic products in Ukraine is WEAGRO, whose online service allows you to quickly and conveniently find the necessary goods and services, ensuring mutually beneficial and effective cooperation [32].

Therefore, it can be argued that the development of the organic sector is particularly important and promising for domestic farmers, consumers, and the state as a whole, especially in the context of ensuring food security, healthy nutrition, and environmental protection, which is a positive factor and contributes to the development of bioeconomic processes in Ukraine. Therefore, the study of the prospects for the development of the bioeconomy requires a more in-depth analysis.

Recently, the production and use of RES have become part of the development direction. The main reasons are the expected depletion of organic fuel reserves, a sharp increase in energy prices, uncertainty in the stability and reliability of their supply, and a harmful impact on the environment, the consequences of which are increasingly worrying society. Alternative energy sources use energy that arises from natural processes, in particular sunlight, wind, water movement, and geothermal phenomena. In the current conditions, the use of renewable energy significantly increases the security of energy supply, improving the social and economic situation [4].

Ukraine is one of the countries that is dependent on energy imports. Therefore, the development of renewable energy is an important factor in increasing its energy security. Reducing the import of expensive energy sources leads to a decrease in Ukraine’s dependence on other countries and a less noticeable impact of the energy crisis. Alternative energy sources, which include natural winds, solar energy, and geothermal energy, are free, safe, and not associated with harmful emissions. In addition, their characteristic advantages are autonomy and the absence of the need to transmit energy over long distances, which is accompanied by large losses and environmental pollution, in particular electromagnetic pollution during the transportation of high-voltage electricity. Given the high energy consumption of industrial enterprises in Ukraine and low natural gas reserves, the introduction of alternative energy sources is particularly relevant.

Currently, countries use various types of RES. The most developed types are wind power, bioenergy, and solar energy. Thanks to the development of new technologies, energy from biowaste has begun to be obtained in large quantities. In addition, special energy crops are grown, such as miscanthus, panicum virgatum, etc. To encourage the generation of electricity from renewable sources, the “green tariff” program has been introduced since 2008. This program provides for the mandatory purchase by the state of electricity from small hydroelectric power plants, wind, and solar power plants, as well as from biomass and biogas power plants. To implement energy efficiency and energy saving projects, Ukraine uses the best international practices. The experience of the Finnish company “NESTE”, which is a producer of liquid biofuels, is promising [40].

Ukraine is following the European path of developing “clean” energy, drawing on the experience and support of the EU. To do this, it is necessary to increase the volume of installed renewable energy capacities in all sectors, in particular, electricity, heat power, and transport. To attract investors, especially foreign ones, to the Ukrainian market, Ukraine is harmonizing its legislation with European legislation, providing guarantees and incentives for business. In addition, considerable attention is being paid to cooperation with local authorities, specialized associations, and international organizations. World experience shows that the attention of state institutions to the problems of developing renewable energy and practical actions in this direction give positive results [41].

In the national renewable energy sector (RES), from 2018 to 2022, installed capacity has grown steadily. The gas crisis of late 2021 and early 2022 confirmed significant prospects for the development of the bioenergy sector in Ukraine (bioES). Against the background of high prices for natural gas, it is bioenergy that can close part of the natural gas deficit in the production of thermal and electrical energy. The geography of the location of RES facilities varies by renewable energy source, which is natural and corresponds to the natural RES potential of a particular region (

Table 3. Installed capacity of the renewable energy sector, MW.

Renewable Energy Facilities	2018	2019	2020	2021	2022
Solar power plants	1388	4836.5	6075.7	6381.1	6396.1
Household solar power plants	157	533	779	1205.1	1385 *
Wind power plants	533	1170	1314.1	1672.9	1754.5
Small hydroelectric power plants	63.4	87	108.7	151.8	153.8
Bioenergy (BioES)	98.4	103.2	106.3	120.9	129.7

* Statistical data for the three quarters of 2022. Source: Public Service “UVEA”, NEURC [16,17,40].

).

According to the Ukrainian Wind Energy Association (UVEA) and the National Commission for Energy and Utilities Regulation (NKREKP), in 2022 the cumulative capacity of RES, excluding household solar power plants, increased by 106.6 MW, of which 81.6 MW were new wind power plants, 8.8 MW were new bioenergy plants, 15 MW were new solar power plants, and 2 MW were new hydropower plants [21]. According to the Ministry of Energy, the installed capacity of solar power plants of private households in Ukraine at the end of the third quarter of 2022 was 1385 MW. According to the review, at the end of 2022, the total installed capacity of renewable energy in Ukraine reached 9.94 GW [16].

Despite the objective stagnation of the development of industrial renewable energy, small-scale, distributed generation continues to develop, although, naturally, not at the same pace as before the start of the active phase of hostilities. Over the three quarters of this year, 6.5 thousand new installations with a total capacity of approximately 180 MW were built. According to the Ministry of Energy, at the end of 2021, there were 44,888 solar installations in private households in Ukraine operating under the “green” tariff model. In September 2022, their number was 51,414 units [17].

In accordance with the Law of Ukraine “On Energy Efficiency”, Ukraine is implementing a modern European tool for implementing energy efficiency policy—the “energy management system”. In accordance with the Resolution of the Cabinet of Ministers of Ukraine dated 23 December 2021 No. 1460 “On the Implementation of Energy Management Systems”, 2022 marked the start of the work of authorities and subordinate enterprises on the issue of implementing energy management. The implementation of an energy management system is the most effective organizational measure in terms of investment and results to increase energy efficiency in both the short and long term. Thanks to this, it is possible to reduce energy consumption by 5–15% without large-scale financial investments.

According to paragraph 1 of Article 12 of the Law, the “energy management system” is implemented with the aim of the following:

-

Analysis of fuel and energy resource consumption;

-

Planning, implementation and monitoring of the results of the implementation of energy efficiency measures;

-

Achieving the goals of the National Plan;

-

Implementation of other measures aimed at increasing the energy efficiency of energy consumers.

Implementing European experience and mechanisms, the State Agency for Energy Efficiency and Energy Saving, within the framework of the German–Ukrainian Energy Partnership, continued close cooperation with partners, including UNDP, GIZ, UNIDO, NEFCO, DENA, and others is required. Among the Agency’s new initiatives is the Erasmus+ KeyAction project—“UKENERGY” on the introduction of new master’s courses in energy efficiency and decarbonization at Ukrainian universities [18].

Ukraine cares about this, as it is a component of the development of the bioeconomy. Among the existing priorities, Ukraine already has the results of using the steadily growing energy potential for renewable energy, and OPs are produced and biomass is partially used for the production of thermal energy, which is positive in terms of the development of the bioeconomy. For the development of the country, not only is financial support important, but also technical regulation, the creation of incentives for the formation of bio-economic industries, and the creation of products [19].

The basis of the new regional policy in Ukraine, which is being implemented from 2021 to 2027, is “a transition from a predominantly territorially neutral to a territorially directed policy of territorial development based on stimulating the use of their own potential, providing support to individual territories characterized by special problems of socio-economic development” [41,42].

In developed countries, the “Smart Specialization” strategy is considered as a fundamental conceptual model for the formation of not only innovation, but also socio-economic policy in general. It involves the identification and development of unique industries or types of economic activity that constitute the specialization of certain regions within the framework of the national economic system. The main goal of implementing smart specialization in strategic planning of regional development is to ensure sustainable development of regions, which involves increasing the efficiency of management of innovation processes in regions, creating a favorable environment for innovative activities and introducing systematic state support for the development of innovations in regions. Smart specialization is based on a partnership between representatives of business, government, scientific and technical institutions, and the public [43,44].

The European Commission has long recognized that research and innovation are key to effective economic transformation. Europe continues to pursue an innovative and smart economic transformation. Smart specialization is considered essential to achieve this goal. Particular attention is, therefore, paid to the governance of regional and national S3s, ensuring that strategies do not remain abstract documents and that mechanisms and instruments are put in place to reach and engage the territory [45].

Smart specialization (S3) is a local approach based on the assets and resources available in a given territory. The S3 should identify and concentrate resources on a limited selection of areas, the so-called S3 investment priorities. Research and innovation are key to sustainable and smart economic transformation. They are central to the EU’s main objectives, such as the green and digital transitions. Therefore, in 2010, the European Commission mandated national and regional governments to develop Smart Specialization Strategies (S3) for research and innovation, so that all European regions could unlock their competitive advantages. Thanks to smart specialization, research and innovation are becoming mainstream regional development tools for the first time, and the concept has taken a firm position in EU regional policy. Smart specialization has brought real changes to the way European regions develop innovation strategies, strengthening cooperation at all levels.

In the new programming period 2021–2027, significant attention is paid to governance and a new thematic conditionality “Effective governance of a national or regional smart specialization strategy” is introduced, which consists of seven performance criteria, namely the following:

• Up-to-date analysis of the challenges of innovation diffusion and digitalization.
• The existence of a competent national or regional institution or body responsible for managing the smart specialization strategy.
• Monitoring and evaluation tools to determine the effectiveness of achieving the strategy’s objectives.
• The functioning of stakeholder cooperation (entrepreneurial discovery process).
• Actions needed to improve the national or regional research and innovation system, where applicable.
• Actions to support industrial transition, where appropriate.
• Measures to expand cooperation with partners outside the partner country in the priority sectors supported by the smart specialization strategy.

During the new programming period 2021–2027, smart specialization strategies continue to play a central role in strengthening regional innovation ecosystems so that they are better equipped to stimulate and support economic growth. They provide the basis for the European Regional Development Fund (ERDF) support for research and innovation worth around €56 billion. Thematic platforms and smart specialization partnerships have also become key tools for bringing together innovators with similar or complementary strengths and priorities across member states and regions, including in technology sectors that are key to the twin green and digital transitions. Innovation in territories aims to stimulate economic growth, improve quality of life, and contribute to sustainable development at national, regional, and local levels. Joint Research Center (JRC) research in this area focuses on sustainable territorial development, the development of dynamic business ecosystems, and the implementation of smart specialization strategies [46].

Smart specialization methodology is a tool for identifying and justifying the most competitive, unique sectors in each region or country, the support of which can have a significant positive socio-economic impact. In EU countries, such sectors are mainly those that use the most innovative technologies or those that have the highest innovation and scientific potential. That is why the first main stage of determining smart specialization is the analysis of the regional context and innovation potential. This predictive and analytical study involves conducting large-scale multi-faceted research, which includes determining the economic, scientific, and technological specialization of the region, the in-depth study of clusters, and expert opinion.

In terms of improving the methodology for developing regional strategies, the experience of regions of the EU countries that have joined the smart specialization platform is interesting. Thus, in the innovative development strategies of all regions of the Republic of Poland, as recommended, economic and innovation potential is considered through the prism of the characteristics of regional assets, research infrastructure, clusters, benchmarking, scientific and production profile, specialization indicators, and SWOT analysis.

According to this methodology, the identification of potential niches of smart specialization of the West Pomeranian Voivodeship is carried out using a comprehensive analysis, which includes two stages: (1) calculation of indicators that determine the critical mass of the analyzed types of economic activity (FEA) or the structure of the region’s economy; and (2) calculation of indicators that reflect the main qualitative characteristics of each FEA.

The indicators of the first stage of the analysis determine the economic and innovative specialization of the region in terms of types of economic activity, as well as the level of entrepreneurial activity. The indicators of the second stage of the analysis of smart specialization reflect the level of competitiveness and innovativeness of enterprises, the development of science in favor of the innovative economy, and the structure of human capital in the context of the development of innovations. The task of this stage of the analysis is a more detailed assessment of the key prerequisites for smart specialization of the studied types of economic activity.

Summing up the review of the methodology used to develop the Smart Specialization Strategy for the West Pomeranian Voivodeship, it can be stated that the key emphasis in was placed on the innovativeness and competitiveness of economic activities, their scientific provision, and impact on the socio-economic development of the region.

A similar methodology was used in the development of the Regional Innovation Strategy for the Greater Poland Voivodeship. The potential directions of smart specialization of this region were determined based on indicators of economic and scientific specialization, as well as the innovativeness and competitiveness of business entities. In general, the assessment of the scientific specialization of the Greater Poland Voivodeship is mainly focused on indicators derived from scientific results. For example, the number of publications in the Web of Science database and patent specialization indicators (presented) are only potential competitive advantages of a particular direction, while the actual ones are the level of testing of the results of fundamental and applied research and their implementation in business practice [47].

Investigating the positive changes in the economy of the Lodz Voivodeship based on smart specialization, it is worth noting that their basis was successfully implemented decentralization reform. Given that over the past decade, innovation has been one of the key conditions for the development of the economy of EU countries, the Lodz Voivodeship has developed an innovation strategy (until 2030), which has identified the directions of smart specialization, the implementation of which will allow the region to strengthen its competitive position. Following the generally accepted methodology, as well as because of the analysis and assessment of the existing potential, six areas of smart specialization of the Lodz Voivodeship were selected, namely the following:

-

Textile and fashion industries (including design);

-

Advanced building materials (including design and development);

-

Medicine, pharmacy, and cosmetics (including sanatorium and resort medicine);

-

Energy, including RES;

-

Innovative agriculture and food processing;

-

Information technologies and telecommunications.

The key technological areas of the voivodeship were identified as biotechnology, nanotechnology and functional materials, communication and information technologies, and mechatronics. It is in the context of these areas that the industries with the greatest innovation potential in the region and a chance to develop and support the economic growth of the voivodeship in the future were identified. In the vast majority of regional smart specialization strategies developed in the Republic of Poland, the main focus is on assessing the actual state, development problems, and prospects for increasing the level of innovation and increasing the innovation potential [47].

Another example of the country’s development based on smart specialization is Estonia. The uniqueness of this country lies in the rapid development of the economy, including due to close cooperation between business and government, significant state investments in science and development and a powerful information technology sector. The future vision of the country’s development based on smart specialization is laid down in the approved innovation strategy, “Estonia based on knowledge”, and the Regional Development Strategy. The innovation strategy is based on the results obtained in previous periods and defines strategic directions for sustainable growth, namely, the following:

• Information technologies (including cybersecurity and software development) and technologies and services in the field of healthcare (including biotechnology and e-medicine);
• The efficient use of resources in areas such as materials science, development of a “smart home”, and healthy eating [43].

Regarding the economic development strategy of Ukraine, it should be noted that since 2015, Ukraine has been implementing the European model of regional development management. Therefore, the process of improving strategic planning on the basis of smart specialization is important. Starting from 2019, Ukraine has begun the process of developing regional strategies for the period until 2027, in which the strategic goals of the development of the industry or types of economic activity must be clearly consistent with “smart specialization”. Thus, within the framework of the development strategy of the Lviv region for the period 2021–2027, the strategic goal “Competitive economy on the basis of smart specialization” has been defined. The greatest innovative potential for development is seen in such types of activity defined by the principles of smart specialization, including the following:

-

Processing (mechanical and instrument-making) and textile industry;

-

Bioeconomy (woodworking, furniture production, printing, food industry, bioenergy);

-

Creative industries (IT, activities in the field of creativity and art, production of video products and advertising materials, provision of information services);

-

MORS (medical tourism, pharmacy, biotechnology, healthcare).

It is these types of economic activity that are characterized by sufficient economic and innovative potential.

Another economically developed region of Ukraine, which demonstrates stable rates of development over the recent period, is the Odesa region, which, despite a powerful processing industry, has chosen the production of agricultural products as its smart specialization. It is assumed that this area can serve as a powerful raw material base, and, therefore, as a prerequisite for the development of the food industry, which in the future will contribute to the creation of products with higher added value, the creation of new jobs, the growth of export revenues, and the development of the region.

The regions of Ukraine that have approved Regional Development Strategies until 2027, but in which their smart specialization is not entirely obvious, include Chernivtsi (agriculture, processing industry, tourism) and Vinnytsia (health and medical tourism) [44,45]. For the formation of a more competitive economy, the methodological “smart specialization” strategy presents a framework (Figure 1).

The formation of regional innovation strategies based on smart specialization involves a logical sequence of stages, with a clear definition of tasks, a list of scientific methods, methodological approaches, and principles. Based on the results of the research, the main stages of developing a regional innovation strategy based on smart specialization are presented and their content is characterized.

Stage 1. Analysis of the region’s innovation potential: It involves analyzing and assessing the potential of a region or country and the needs and barriers to innovation activities of small and medium-sized enterprises, as well as assessing the contribution of infrastructure to the implementation of innovations.

Stage 2. Management: This involves stimulating the participation of actors in the innovation process. This includes involvement in the discussion of the future strategy of those responsible for developing the strategy from government agencies, higher education institutions, scientific institutions, industry, investors, representatives of civil society, the business community, domestic and international experts, etc.

Stage 3. Development of a concept for a general vision for the development of the region: At this stage, a common vision of the development of the region’s economy is developed, and a future scenario of changes, realistic goals, and specific methods for achieving them are developed.

Stage 4. Determining priorities: This aims to select a limited number of priorities considering the specifics of the region’s development. The selection process should be based on qualitative and quantitative indicators characterizing the industry.

Stage 5. Defining agreed integration policies, roadmaps and action plans: This is provided by developing a roadmap and an effective action plan for implementing the region’s strategy based on smart specialization.

Stage 6. Monitoring and evaluation: This provides for control over the proper use of financial resources and verification of compliance with the implementation of planned activities [45].

To ensure the development of the bioeconomy in modern conditions, improving enterprise management based on the principles of management and marketing and ensuring a strategic approach to enterprise activities through MM is of particular relevance [8].

MM is an innovative approach to enterprise management, which allows achieving optimal economic performance and positive social effects simultaneously, reconciling the different interests of owners, managers, employees, partners, consumers, and society. The introduction of MM at enterprises using the latest customer-oriented tools allows for the optimal combination of diverse interests of all market participants and obtaining economic and social effects from economic activity simultaneously [47].

MM of an enterprise is an opportunity to organize its activities according to the principles of optimal use of available potential and obtaining the greatest profit, considering the satisfaction of consumer needs. A systematic approach to the organization of MM is necessary for enterprises oriented towards the market and the external environment. Identification and justification of the main factors influencing the directions of enterprise management is the primary task of every enterprise [48].

MM is based on management functions that consider ideas, goods, and services as basic categories. The main task of MM is to achieve a sense of satisfaction for all parties involved in the exchange. The concept of MM is based on the efficient allocation of limited resources in the process of translating marketing information into marketing actions [49].

When characterizing marketing management, it should be noted that this is a process, the main components of which are analysis, planning, implementation of plans, and control over the implementation of measures aimed at establishing, strengthening, and maintaining mutually beneficial exchanges with target markets to achieve the goals of the enterprise (profit, increase sales volumes, increase market share, etc.) [50].

The concept of MM involves an orientation to market needs, a strategic approach, and a focus on long-term commercial success, and is based on management functions, and a targeted, comprehensive, systemic approach to the implementation of all management activities, including ideas, goods, and services as the main categories. In addition, it acts as a system of scientifically based ideas about the regularities of production and sales activities of enterprises, organizations, or individuals in a market economy [9].

A comprehensive enterprise management system based on marketing is a complex system of elements (structural aspect) and actions (functional aspect), through which the balance of the management system and its overall effectiveness are ensured. The implementation of the MM concept in a specific enterprise is possible through the practical implementation and application of a comprehensive MM system. Diagnostics of the enterprise management system should cover the main areas: management organization, marketing, research and development, technology, personnel, organizational culture, and image [7].

The creation of a complex economic concept of “marketing management” has taken place over a significant period with the accumulation of experience and under the influence of many factors. At the beginning of its formation, the concept was in a vague and unformed form. The accumulation of knowledge in MM took place in two planes. Management specialists considered marketing as one of the functions of management, and marketers attributed management to the main tasks of marketing. This duality is traced in many scientific works.

Considering the historical development of marketing management, four conceptual approaches to defining this concept can be distinguished (Figure 2).

(1)

From the perspective of classical management—managing an organization or enterprise on scientific principles.

(2)

From the perspective of classical marketing—promoting goods or services from the producer to the consumer in the most effective way.

(3)

From the perspective of MM—management of marketing services of an organization or enterprise.

(4)

From the perspective of MM—management based on marketing principles [47].

It is becoming necessary for Ukrainian enterprises to adopt new approaches to production management and service provision. In this regard, the improvement of enterprise management based on the use of management and marketing principles, ensuring a strategic approach to the activities of enterprises, which is carried out using MM, becomes particularly relevant. The goal of MM is the marketing orientation of management, which allows countries to more effectively satisfy needs through exchange and obtain the planned result. Such orientation determines the specificity of analysis, planning of organization, motivation, implementation, and control of only the functions of MM, and not management in general. Its main task is to achieve a sense of satisfaction by all parties to the exchange [9].

The choice of the most effective means of MM for an enterprise depends on the ability of managers to timely consider trends that are characteristic of the development of the modern market. The main ones are as follows:

-

Increasing the importance of quality, price, and consumer satisfaction;

-

The need to build sustainable relationships;

-

The ability to think globally;

-

Strengthening the role of high-tech industries in business;

-

Increasing the importance of service marketing, etc. [50].

A number of Ukrainian scientists characterize marketing management

-

as the process of identifying target markets for implementing pricing, promotion, and distribution policies, and implementing an exchange that satisfies supply and demand in the goods market;

-

as the purposeful coordination and formation of all activities of the enterprise that are related to the market activities of the organization at the level of the market and society as a whole and are based on the principles of marketing.

The study of the concept of MM through various criteria generates a significant part of the discussion issues. Thus, the views of scientists are based on such criteria as activity, system, tool, mechanism, and function. Therefore, there is no single opinion on the definition of marketing management. Therefore, in each individual case, it is necessary to analyze all available points of view. Thus, the analysis of the authors’ interpretations of the essence of the concept of “marketing management” makes it possible to determine that the views may be different, but in practice they are all implemented. Individual representatives of the indicated theoretical approaches are presented in

Table 4. Definitions of scientists regarding the disclosure of the essence of “marketing management” (summarized by the author).

Author	Author’s Position
Dian Jia, Honghou Zhang, Xiaoyang Han. [8]	MM is an innovative approach to enterprise management that allows you to achieve optimal economic performance and positive effects at the same time, reconciling the different interests of participants.
Kovshova I.O. [48]	MM is an innovative approach to enterprise management that allows you to achieve optimal economic performance and a positive social effect at the same time, reconciling the different interests of owners, managers, employees, partners, consumers, and society.
Kotler P., Keller K. [50]	MM is the process of planning and implementing concepts for pricing, promoting, and distributing ideas, goods, and services to create exchanges that satisfy individual and organizational goals.
Kutsenko V. M. [51]	MM is a process whose main components are analysis, planning, implementation of plans, and control over the implementation of measures aimed at establishing, strengthening, and maintaining mutually beneficial exchanges with target markets to achieve the goals of the enterprise.
Bilovodska O.A. [9]	MM, as the management of an enterprise’s activities, is a change in the way of thinking; it is the adoption of all management decisions considering market requirement and the constant ability to change market requirements and take into account external conditions.
Kurbatska, L. M. [7]	MM of an enterprise is an opportunity to organize its activities on the principles of optimal use of available potential and obtaining the greatest profit, considering the satisfaction of consumer needs.
Rzaeva T. G., Galachynska T. V. [52]	MM is a management activity related to planning, organization, coordination, control, audit, and stimulation of measures to intensify the process of formation and reproduction of demand for goods and services, increasing profits, etc.

Source: systematized by the authors.

.

Successful implementation of MM by Ukrainian enterprises requires a clear understanding of its essence and mechanism of application. The concept of a “marketing mechanism” is proposed to be understood as a stable managed system of interaction of marketing entities that use appropriate levers and marketing tools in their chain reaction to achieve the target result [7].

MM mechanisms are defined as a system of management levers, specific means, principles, methods, and organizational marketing techniques used by an enterprise in managing its activities. This system determines the process of formation, organization, implementation, and control of marketing activities. Such a mechanism for managing an enterprise is aimed at increasing the effectiveness of its work, its market stability, maximum satisfaction of society’s demands, and ensuring systematicity, coordination, and flexibility of the activities of a particular enterprise. MM mechanisms increase work effectiveness, market stability, maximum satisfaction of society’s demands and ensure systematicity, coordination, and flexibility of the enterprise’s activities for implementing the management process aimed at achieving the target result [51,53,54].

Analysis of scientific sources shows that, among modern specialists in management and marketing, there is no unambiguous position on defining the essence of the MM mechanism. However, all definitions focus on the system of marketing tools and their interaction. In this study, the author offers his own understanding of the “marketing mechanism for managing the development of the bioeconomy”, which is based on innovations, technologies, and environmental protection, the implementation of which is ensured by a system of management tools (

Table 5. Definitions of scientists regarding the disclosure of the concept of “marketing management mechanism” (summarized by the author).

Author	Author’s Position
Kurbatska L.M. [7]	The concept of “marketing mechanism” suggests understanding it as a stable, managed system of interaction between marketing entities that use appropriate levers and marketing tools in their chain reaction to achieve the target result.
Hadrian P., Milichovský F. Mráček P. [53]	The MM mechanism is a system of a holistic set of marketing tools designed to implement a logical management process that is constantly in a state of adaptation to market business conditions dictated by the external environment.
Kovalchuk S., Kovinko O. [55]	The marketing mechanism of enterprise management represents a set of forms, methods, and means by which enterprise managers must regulate its activities. It assumes the presence of certain subsystems that are interconnected and are part of the overall system.
Konovalenko A. [56]	Interprets the concept of “marketing mechanism” as a stable, managed system of interaction between marketing entities that use appropriate levers and marketing tools in their chain reaction to achieve the target result.
Aguilar A., Twardowski T. [1]	The MM mechanism is a complex of laws, patterns, factors, principles, and methods of forming and functioning of a system that is designed to satisfy consumer needs by obtaining economic, social, environmental, marketing, organizational, and managerial effects.
Kucher O. Own definition	The marketing mechanism for managing the development of the bioeconomy is based on innovation, technology, and environmental protection, the implementation of which is ensured by a system of management tools.

Source: systematized by the authors.

).

To understand the meaning of the concept of “marketing mechanism”, it is important to note that a feature of its functioning is the use of specific tools, because marketing, as a science, is designed to optimize processes and phenomena based on the use of special tools. The specificity of the tools is also reflected in the characteristics of the marketing mechanism [47].

MM involves making all management decisions considering market requirements, which determines the orientation of the enterprise not only to internal capabilities, but also to external conditions. The functional direction of MM is associated with close contact within the market between the marketing function and the production, sales, financial, administrative, and other functions of the enterprise, to achieve the desired result in production and sales activities. The process of creating and developing such complex communicative relationships is the mechanism of marketing management. The task of MM is to identify market needs in a timely manner and satisfy them by mobilizing the actual and potential capabilities of the enterprise [9].

It should be noted that even a perfectly designed project is not a guarantee of the future commercial success of the enterprise if there is no clear mechanism for its implementation. Any marketing management task can be implemented by performing certain procedures of the MM mechanism process.

In the proposed model, the marketing mechanism for managing the DBE is reflected in the following elements of its implementation process (Figure 3).

• The analysis of the internal and external environment includes an assessment of the strengths and weaknesses of the enterprise, as well as the market opportunities and threats. This allows for a study of the market requirements for the product, the economic situation, the market structure, forms and methods of market operations, market segments, characteristics of buyers, and their motivations when purchasing, as well as the enterprise’s capabilities under existing conditions. In other words, it involves evaluating every opportunity based on available resources, along with a thorough assessment of current and future demand.
• The formation of a marketing information system involves creating a continuously operating system within the enterprise management structure. This system connects people, equipment, and methodological methods to collect, classify, analyze, evaluate, accumulate, and disseminate relevant, timely, and accurate information. The goal is to use this information to improve the planning, implementation, and control of marketing activities.
• Target segmentation involves focusing marketing efforts on addressing the needs of selected consumer groups that are profitable and convenient to serve. This approach helps avoid expending resources on serving the entire market. To do so, each opportunity must be analyzed in terms of the size and nature of the market. This process consists of four stages: measuring and forecasting demand, market segmentation, selecting target market segments, and positioning the product in the market.
• The marketing mix includes factors such as product, price, distribution methods, and promotional strategies used by businesses to influence the target market and achieve the desired response from a specific group of consumers.
• Organization of a marketing planning system is a phased process aimed at achieving marketing goals. Through this process, the enterprise monitors and controls the factors influencing profit by systematically utilizing marketing resources. The process includes the following stages: Analysis of the internal and external environment; Determination of marketing goals and objectives; Search for alternative solutions and forecasting; Evaluation of alternative solutions; Decision-making; Support and monitoring (controlling) of the plan.
• The optimal operation of the enterprise can be achieved by establishing a dedicated team that focuses on processing modern ideas and proposals for continuous improvement. The organizational structure of marketing within the enterprise should include departments, offices, and services, with established connections that ensure coordination, coherence, and high productivity in joint marketing activities.
• Marketing programs are developed to achieve the most effective goals. They reflect the specifics of the company’s product, pricing, sales, and communication policies, outlining the responsibilities of those involved.
• The marketing control system is designed to continuously monitor the implementation of marketing plans and ensure their goals align with the actual marketing situation [2,9,54].

The MM methodology revolves around the principles of structure, logical organization, methods, and means of activity. Therefore, mastering the marketing methodology is crucial for implementing marketing management, as it enables the formulation of scientifically grounded marketing decisions [57].

Therefore, the process of the MM mechanism is a set of consistent management decisions regarding the organization, planning, and management marketing activities, made of market opportunity risks and the development of a marketing strategy for managing the activities of the enterprise, aimed at realizing internal resource potential to meet consumer needs.

4. Discussion

The issue of the bioeconomic direction of economic development is the subject of scientific research by domestic and foreign scientists, which substantiates the theoretical foundations and methodological approaches to making effective decisions to ensure the development of the bioeconomy. This aspect was studied by Kotler F., Wicki L., Hausknost D., Gołębiewski J., Vogelpohl T., Karpenko V., Łuczka W., Tkalenko S., Bugaychuk V., Grabchuk I., and others.

Research on the problems of the formation and functioning of the marketing mechanism for managing the development of bioeconomic processes in Ukraine is presented in the works of the following scientists: Bilovodska O., Kotler F., Kurbatska L., Galachynska T., Voychak A., Lomovsky L., Konovalenko A., and others. Their works investigate and analyze the development and formation of the bioeconomy in Ukraine, as well as the content of the economic category of marketing management and the formation of a marketing management mechanism at enterprises in the context of forming a system for implementing bioeconomic measures. At the same time, the implementation of a marketing mechanism for managing the development of bioeconomic processes in Ukraine requires further scientific research.

For Ukraine, the problem of implementing bioeconomic measures is quite relevant, as it will allow the creation of a more innovative, resource-efficient, and competitive economy. The priority areas of the bioeconomy are the creation of prerequisites for the economical use of natural resources, minimizing environmental risks, the spread of biological agriculture, and using energy-saving technologies. The development of the bioeconomy is an extremely important area for Ukraine, which has significant corresponding potential and state support for this [58].

The development of the bioeconomy will contribute to ensuring energy security, the development of various sectors of the economy, innovations, and attracting investments in leading sectors of the economy. It is the bioeconomy that ensures the interaction of the three components of sustainable development and combines economic and social elements through the production of products based on biotechnology. A key element in Ukraine’s position regarding the development of the bioeconomy is the amount of agricultural land for the production of biomass and other products based on biotechnology. [59,60,61].

The bioeconomy encompasses those areas of the economy that determine its sustainable development. It is based on the development of organic production and renewable energy, which are its important components. The main tasks facing Ukraine are food security, sustainable agricultural production, the production of safe food products, and the use of renewable resources. Therefore, the bioeconomy is becoming a priority and strategic direction of economic development in Ukraine. As competition in the market increases, enterprises have been forced to focus on external processes, analyze them, and take them into account in business practice. This has led to the emergence of a marketing approach in enterprise management, which contributed to the emergence of a new scientific direction—marketing management—in which the main actor is not the internal environment of the enterprise, that is, the capabilities of the producer, but the consumer [24,25,27,28]. However, scientists note that Ukraine lacks an effective mechanism for collecting official data in this area. All information is fragmentary, and statistical data are only available on organic production, so it is impossible to conduct a comparative analysis and assess the development of the industry. For its part, business is not aware of possible practical bioeconomy projects [26,29,30,52].

Ukraine must create a sustainable, innovative, resource-efficient economy integrated into the global space, with the sustainable use of renewable energy sources and resources for industry. In the post-war period, the bioeconomy should become a priority to support Ukraine’s economic recovery, since a sustainable bioeconomy returns resources to the real sector, creates jobs, contributes to increasing the level of environmental friendliness of production and consumption, and allows for the optimal use of limited resources on a waste-free circular basis [55,56,62,63,64].

The importance of a marketing-oriented approach in enterprise management lies in the formation of a new way of thinking for managers, a new management philosophy, which is based on the desire to maximize the satisfaction of the identified needs of consumers and clients by manufacturing products that are relevant and in demand at this particular time period. The use of marketing when making a management decision allows one to take into account the state, dynamics of demand, and market conditions, creating conditions for adapting production to market requirements and contributing to the formation of a favorable investment climate [65,66].

Marketing management of production and sales activities of enterprises contributes to the process of analysis, development, and implementation of measures aimed at establishing, strengthening, and maintaining mutually beneficial relationships with customers; it provides the opportunity to organize the activities of enterprises based on the principles of optimal use of existing potential and obtaining the greatest profit, taking into account the satisfaction of consumer needs. The main task of the marketing management mechanism is to ensure the most flexible and effective use of all types of resources and opportunities, marketing tools, and the scientific and production potential of the enterprise to achieve strategic goals [67]. The development of a market-oriented economic system and the development of perfect competitive relations between its subjects in Ukraine require the introduction of both a leading and managed marketing management mechanism capable of ensuring stable, highly profitable functioning of enterprises.

The development of the bioeconomy will contribute to the stabilization of the country’s economic system through the production of goods and services, ensuring energy security, the development of various sectors of the economy, innovations, and attracting investment in leading sectors. The bioeconomy has enormous potential for Ukraine, as it contributes to the creation of new economic opportunities, reducing dependence on fossil resources, stimulating the introduction of innovations in agriculture, industry, and medicine, as well as the development of renewable energy sources and the circular use of resources. In the perspective of “green” post-war reconstruction and European integration, bioeconomic transformation becomes a key direction of development for Ukraine, as it will contribute to the creation of new jobs, increasing the efficiency of natural resource use, and attracting investment capital. In addition, the transition to the bioeconomy will contribute to the harmonization of legislation with European standards, which will ensure the further integration of Ukraine into the European space and strengthen its position in the international arena [68]. The introduction of the bioeconomy in Ukraine, according to most experts, is relevant in modern realities. Scientists and the public sector emphasize the importance of the bioeconomy in view of the prospects for European integration and its positive impact on the environment. On the other hand, business considers the introduction of biotechnology as a condition for increasing its own competitiveness in the European market. The feasibility of developing the bioeconomy in the future will only grow. This is an innovative (trendy) European practice that involves reducing carbon emissions, which is part of Ukraine’s climate commitments (European Green Deal).

Among the main recommendations for stakeholders who are interested in the development of the bioeconomy, influence the formation of management decisions, and are able to accumulate resources to finance bioeconomy projects, the following can be noted: It is necessary to expand the offers of sectoral support for bioeconomic entrepreneurship through grant programs that combine educational components and are aimed at attracting vulnerable social groups, such as IDPs, veterans, and women. Scaling up existing bioeconomic projects that have export potential, especially in agriculture and energy, is also crucial. Additionally, expanding sources of information dissemination at the local and state levels regarding existing programs to support bioeconomic entrepreneurship is necessary. Furthermore, forming and developing an expert environment and exchanging experiences with colleagues from the EU is vital.

The popularization of entrepreneurial projects in the bioeconomy can be achieved by using various communication strategies and channels: the creation of educational materials—Webinars, video tutorials, infographics, and other formats will help explain the essence and potential of the bioeconomy to a wide audience; the participation in exhibitions and conferences—presenting entrepreneurial projects at exhibitions, conferences, and fairs dedicated to the bioeconomy; the creation of online platforms—developing websites or social media pages dedicated to entrepreneurial projects in the bioeconomy; and the creation of partnerships—Synergies between public organizations, government institutions, and research centers can facilitate the exchange of resources, data, and expertise, as well as provide broader support for entrepreneurial projects [68].

For the successful innovative development of Ukraine’s bioeconomic potential, it would be advisable to constantly study the global experience of countries that successfully implement innovations and establish cooperation with them. It is also important to stimulate innovative activity in Ukraine (e.g., through tax breaks, etc.), establish cooperation with global think tanks, and create their representative offices in Ukraine.

5. Conclusions

The issue of the bioeconomy development is one of the most relevant topics in scientific research. The priority directions of the bioeconomy include creating prerequisites for the economic use of natural resources, minimizing environmental risks, promoting biological agriculture, and using energy-saving technologies across a wide variety of industries. As a result of the research conducted, it has been established that, under current conditions, the development of bioeconomic processes is crucial for ensuring the sustainable development of the country’s economy.

Summarizing the results of the study, key positions regarding the formation of a marketing mechanism for managing the development of the bioeconomy in Ukraine can be identified. Ukraine is following the European path of developing “clean” energy, drawing on the experience and support of the EU. Based on scientific research and innovation, the transition to a bioeconomy helps develop new types of products and modernize existing ones. The bioeconomy is a multifunctional sector, as it combines various sectors of the economy using biotechnology: agriculture, processing, pharmaceuticals, food, and others. Bioeconomic processes contribute to the transition from natural resources to bioresources, creating the potential for the modernization of traditional sectors of the economy and ensuring new sustainable economic development.

Organic products play a significant role in the development of the bioeconomy. The organic market in Ukraine is constantly growing. Due to the country’s size, the availability of agricultural land with fertile soil, its geographical location, and proximity to potential international buyers, Ukraine has favorable conditions for organic agriculture. According to the Federation of Organic Movement of Ukraine, there has been steady annual growth in the domestic consumer market for organic products since the early 2000s. As the domestic market develops, the country is increasingly establishing its presence in the international organic market, expanding the range of products offered and the geography of exports.

Renewable energy sources are also part of the country’s bioeconomic development direction. Ukraine is one of the countries dependent on energy imports; therefore, the development of renewable energy is an important factor in increasing its energy security. In the current conditions, the use of renewable energy significantly increases the security of energy supply and improves the social and economic situation.

To ensure the development of the bioeconomy in modern conditions, improving enterprise management based on the principles of management and marketing, and ensuring a strategic approach to enterprise activities through MM is of great relevance. The MM mechanism is a set of measures aimed at increasing the efficiency of the enterprise, its market stability, maximum satisfaction of society’s demands, and ensuring the consistency, coordination, and flexibility of the enterprise’s activities for implementing the management process aimed at achieving the target result. Analysis of scientific sources shows that among modern management and marketing specialists, there is no unambiguous position on defining the essence of the MM mechanism. However, in all definitions, the emphasis is on the system of marketing tools and their interaction. Based on the specifics of the research object, the marketing management mechanism is a system of interrelated and subsequent priorities and actions determined by goals, with which the help of an appropriate system of marketing tools is provided. The fundamental basis of the marketing mechanism of enterprise management is the methodology that allows making scientifically based marketing decisions.

In the context of integration into the international economic system and modification of the factors of competitiveness of the national economy, the regions of Ukraine are faced with new opportunities for the application of effective innovation mechanisms and instruments for stimulating regional development. As the proposed model for forming a bioeconomy innovative approach, “smart specialization” enables more competitive development. The model presents the methodological components and main stages of developing a regional innovation strategy based on smart specialization and characterizes their essence. Smart specialization is an innovative EU tool for building regional capacity through two key approaches, in particular, considering local conditions and the knowledge economy. In Ukraine, the bioeconomy development strategy aims to create a more competitive resource base. This strategy will serve as an action plan for the development of bioeconomy (DBE) to ensure stable, sustainable economic development, create new industries and additional jobs, and improve the environment.

The research conducted has allowed us to identify modern and necessary management tools that will contribute to the following:

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Mechanisms for the development and implementation of scientific results of research and development to ensure the scientific basis for the development of the bioeconomy.

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Involvement of the potential of scientific organizations in the creation and production of new biotechnological products.

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Formation of the necessary tools and mechanisms to support public procurement and popularization of biotechnological products.

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Creation of a system for the promotion and sale of bioeconomic products on domestic and foreign markets to ensure an increase in their production volumes.

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Ensuring state support for agricultural producers who use biotechnology and produce biotechnological products.

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Creating organizational and legal foundations and harmonizing the regulatory framework of Ukraine with the framework of the European Union and other countries in the field of regulating the development of the bioeconomy.

For this, not only is financial support is important, but also technical regulation, creating incentives for the formation of bioeconomic industries, building the necessary technological infrastructure, and creating demand for products. The basis of the new regional policy in Ukraine, which has been implemented from 2021 to 2027, is the “transition from a predominantly territorially neutral to a territorially directed policy of development of territories based on stimulating the use of their own potential, providing support to individual territories characterized by special problems of socio-economic development”.

The practical significance of the research is to determine the priorities of bioeconomic development, the relevance of implementing bioeconomic measures, and the proposed process of a marketing mechanism for managing the DBE in Ukraine.