The role of medical and educational services in innovation development of economy

Abstract

This publication examines the underestimated role of medical and educational services as crucial drivers of the innovative development of a post-industrial economy, particularly in Ukraine. Unlike traditional views that sideline these sectors, the study argues that health and education function as both ultimate goods (ensuring human well-being and security) and intermediate investment goods (creating intellectual capital for economic self-realization). The analysis highlights the unique economic relations in these sectors, marked by high social justice requirements, information asymmetry, and long-term investment decisions. Key strategies proposed to enhance their impact on national innovative development include decentralization, public-private partnerships, the development of E-health systems, and improved non-profit sector support.