DIRECTIONS OF MODERNIZATION OF ECONOMIC FUNCTIONS OF THE STATE IN THE CONTEXT OF INVESTMENT AND INNOVATION DEVELOPMENT

Abstract

The article examines the directions of modernization of the economic functions of the state in the context of investment and innovation development. The economic functions of the state are defined. The instruments and key measures of institutional regulation are highlighted. It is substantiated that the state investment and innovation policy visualizes the vector and strategy of actions aimed at the efficiency and effectiveness of the investment and innovation market in order to create an innovative product and meet the needs of stakeholders. A general paradigm of an effective strategy for the investment and innovation policy of the state is proposed. The main vectors of creating an effective strategy for investment and innovation policy in the national macroeconomic environment are determined. The organizational structure of institutional regulation in the context of investment and innovation development is developed. The principles of the process of modernization of economic functions of the state in the context of investment and innovation development are proposed. The directions for assessing the investment and innovation potential of the national economy are determined. It is proved that the functions of the state in the era of Industry 4.0 are becoming much more complex, the scale of problematic issues requiring regulatory impact is increasing, and there is a need to find new sources of investment and development of national human capital. The results of the study confirm that in order to ensure the functioning and post-war recovery of the national economy, it is necessary to move to an adaptive investment and innovation model of Ukraine's development, which will also ensure appropriate economic growth rates in the future. As the functions of the state in the era of Industry 4.0 become much more complex, the scope of issues requiring regulatory action increases, and there is a need to find new sources of investment and develop national human capital. This problem is further complicated by changes in uncontrollable factors associated with such phenomena as external military aggression. The state investment and innovation policy should become a determining factor in the recovery of the national economy and economic growth in the postwar period.