Abstract
Strengths and weaknesses of the innovative development of Ukraine are identified. Possible sources of Ukrainian enterprises innovative development funding were analyzed and factors influencing the financing of the business entities’ innovative development were identified. The advantages and disadvantages of financing sources of innovative development are determined. The analysis of statistical data showed that the main source of financing innovations in the industry in Ukraine is the company's own funds. Mechanisms and tools for mobilizing financial resources for financing the innovative development of economic entities have been systematized. The results of modeling the impact of sources of financing on GDP and the volume of products sold by enterprises demonstrated the greater importance of financing enterprises at the expense of state budget funds for increasing the effectiveness of innovative activities.
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