BIO-ORIENTED AGRARIAN ECONOMY INVESTMENT PROGNOSIS IN THE EU COUNTRIES

Abstract

The purpose of the investigation is making a prognosis of bio-oriented agrarian economy investment in the EU countries and preparing a set of steps how to attract investment in the bio-oriented agrarian economy sectors. Nowadays investment is one of the critical factors of bio-oriented agrarian economy development. It was set as one of the priories in the European Strategy 2020, where they defined the bio-oriented economy as the main engine for smart and innovation growth in Europe. Methodology. To make a prognosis, it was used BP Stat program, namely Brown’s, Holt’s, Box–Jenkins, and Olympus’ methods. Results. In the third millennium, the global community faced many objective problems, which need cooperation and relations between nations to solve them. There were defined such challenges: climate changes, the growth of the global population, exhaustion of limited resources and others. To meet these challenges, the European Commission proposed the bio-oriented agrarian economy concept, which is an interdisciplinary phenomenon and combines elements of several fields of science: economy, management, chemistry, biology, pharmacy, physics, and mathematics. In accordance with the EC classification, there are such bio-oriented economy sectors: food, agriculture, paper/pulp, forestry/wood industry, fisheries and aquaculture, bio-chemicals. The main aim of the bio-oriented agrarian economy is a smart use of biological resources to produce healthy food and feed and minimizing the use of limited resources. During the investigation, there were given arguments and explained the necessity of bio-oriented agrarian economy development both on the EU and national levels. It was proved that without investment, it is impossible to develop such a concept. Practical implementations. Obtained prognosis allows to predict the dynamic of bio-oriented agrarian economy investment in Europe and develop a set of steps how to attract investment in this sphere, namely to invest in research and innovation sectors; support commercialization of knowledge and innovation; promote entrepreneurship in the sectors of bio-oriented agrarian economy; develop an innovation-friendly regulatory framework and support creating new jobs in the bio-oriented agrarian economy sectors. Value/originality. Results of the investigation help to improve the theoretical base of bio-oriented agrarian economy concept development and show the importance of investment of bio-economy sectors as on the national levels and on the European one.