The article dwells upon the coverage of the issues of the influence of government policy of protectionism on the economic development and public socialization of the Ukrainian lands in end of 19th and the beginning of 20th century. Some long-term effects of the state paternalism for the domestic large-scale industry, small-scale manufacturing, agricultural production, domestic and foreign trade, etc. are revealed. The main reasons of ineffectiveness of the domestic capitalist economy, generated by the active implementation of protection policy, are substantiated.
Nowadays, the process of making effective economic decisions requires reference to the history of Ukrainian economic thought. The study of intellectual heritage and innovative ideas of prominent Ukrainian economists, among whom Ivan Vernadsky occupies an important place, will enrich the understanding of the mechanisms and ways of modern economic transformation. The purpose of the article is to analyze and generalize Ivan Vernadsky's conceptual views on the role of foreign trade policy in economic development. The theoretical basis of this study is conceptual approaches to understanding the nature of foreign trade policy, in particular, protectionism and free trade. Systematic, comparative-historical, institutional-evolutionary, and historical-genetic analyses were used as the research methodology. The author considers Ivan Vernadsky's conceptual approach to foreign trade as a basis for providing the country's economic leadership in the international area. The economist's ideas on the advantages of liberal foreign trade policy, free trade, and its mutual benefits for countries are revealed. Ivan Vernadsky was a staunch opponent of restrictive foreign trade policy, which creates obstacles to the country's competitive advantages and economic progress. Attention was paid to Ivan Vernadsky's criticism of customs protectionism. According to the scientist's point of view, protectionism leads to monopolization, price rises, technical and technological backwardness of production, destabilization of foreign trade relations, etc. At the same time, one of the scientist's merits is the formation of an innovative approach to the interpretation of protectionism as a general economic doctrine and a realistic economic policy. Ivan Vernadsky's vision of the basics of efficient management is generalized. He creates an original theory of economic development, which can be used for selection of effective mechanisms of modern economic policy.
The Russian-Ukrainian war causes the loss of a significant part of Ukraine's production and raw and food export potential, which creates the risk of economic insecurity in the long run. At the same time, the new challenges create favourable conditions and opportunities for restructuring the national economy in the direction of developing high-tech areas and increasing the science-intensiveness of traditional industries. Today, the question is to choose the most effective institutional and economic mechanism for such a transformation, as exemplified by the State of Israel. The article is devoted to the research of the Israeli practice of transition to high-tech production and the formation of an innovative export-oriented economy. The author aims to clarify the conditions, factors, mechanisms, and tools for the successful economic transformation of Israel in terms of the possibility of implementing the acquired historical experience in Ukrainian realities. The methodology is based on a systematic approach, which considers the economic transformation of Israel as a set of processes and systems of closely interrelated elements (historical conditions, institutional factors, public policy, available resources, economic potential, etc.). It is necessary to apply the historical-evolutionary approach to identify the features and trends of the country's transition from traditional spheres of production and export to high-tech. In this context, comparative-historical analyse is used. The precondition for the transition of the State of Israel to high-tech production and exports was the development of powerful science-intensive complexes of its own agricultural and defence production through targeted public and private investment, subsidies and loans to producers, stimulating education and research, a unique system of public-private partnership (so-called "gold triangle"). It is determined that the use of defence technologies in production of the double-purpose products (in space, aviation, cybersecurity spheres), the flow of intellectual capital, and the formed research base became the basis for the development of pharmaceuticals, electronics, microelectronics, computer hardware, and software, etc. The key role in the Israeli transition to high-tech production and exports was played by state support policy implemented by grant funding instruments for education and R&D, venture capital incentive programs, tax and credit benefits for small and medium businesses, an extensive system of institutional assistance, and effective legal regulation of the business environment for the protection of intellectual property rights, granting special privileges, simplifying the procedure of repatriation of profits, ensuring high-quality products, etc. The policy of "arms diplomacy", trade liberalization, tax, credit, and institutional support of exporters, the conclusion of a system of agreements on international trade, and economic and scientific-technical cooperation contributed to the formation of the competitive advantages of Israel in the markets of high-tech products.
