Innovation Support Policy and Its Role in Regional Economic Development

Abstract

Aim. By examining theoretical foundations and evolution of the policy of supporting the innovation activity of economic entities, this study aims to develop proposals that would create conditions for the transition towards economic development based on innovative incentives within the framework of this policy.Tasks. The authors determine the essence and content of innovative development policy and the periodization of its implementation stages; analyze and compare leading approaches to the interpretation of the concept of innovative development policy; identify factors that determine the choice of policy and its specific aspects. Methods. This study is based on conceptual ideas about a policy stimulating economic development and uses the systems approach, comparative analysis, historical method, as well as groupings, generalizations, and analytical tools that are adequate for the purpose of the study.Results. In view of the need to create conditions for the intensification of innovative development and the transition towards innovation-driven economic development, the essence and content of a policy in the field of innovative development are presented, prioritizing incentives in the activities of economic entities. A periodization of policy stages is provided, covering the period from the 1950s to the present day. Leading approaches to understanding the essence of the policy of supporting innovative development are analyzed and compared, allowing the authors to define them as a theoretical and methodological basis for the formation of an appropriate national policy in the field of economic development. Conditions that determine the choice of policy and its specific aspects are determined, reflecting continuous changes in the external and internal innovation environment.Conclusions. The effectiveness of the national policy of stimulating innovation activity for the purposes of dynamic economic development depends on its objectives, the state of the innovation environment, and the ratio between general and targeted support measures for innovative industries and companies. This is tied to the conditions for the transition to economic development based on innovative incentives within the framework of the implemented policy.