ORGANIZATIONAL AND FINANCIAL DETERMINANTS OF THE INNOVATIVE COMPONENT OF THE COUNTRY’S COMPETITIVENESS

Abstract

Abstract. The article identifies the impact of sources of funding for innovation in the country on economic growth through economic and mathematical modeling and construction of regression equations between GDP and funding for innovation and research costs with the construction of a multifactor regression equation. As a result of regression analysis, it was found that the most significant impact on the resulting indicator have such variables as capital investment from state and local budgets and research and development costs. Using the method of extrapolation, GDP growth was forecast for 4 years, and it was found that capital investment from own funds of enterprises and organizations will grow by 24,08%, capital investment from state and local budgets by 28,42%, research costs and development by 22,76% for the analyzed period.Subject to compliance with the projected values of the financial determinants of the innovative component of increasing the country’s competitiveness, the volume of estimated GDP in actual prices for the forecast period will increase by 936039,011 million UAH or 23,26%. The reasons for the low level of the state of the innovation sphere in the domestic economy are outlined: underdevelopment of the market of innovative products due to low indicators of development of integration processes in it; weakness of relations that determine the innovative nature of economic development; low motivation of the industrial sector in innovative development; the supply of technological innovations created by national industrial companies and research institutions in the domestic market is limited; high cost of development and implementation, high interest rates on the investment portfolio, a long payback period, the focus of financial institutions on the issuance of «short loans», usually consumer loans for technological renewal of industrial sectors. To resolve such contradictions, the system-forming factors of a set of measures to intensify integration processes in the innovation sphere of Ukraine were proposed. Systematized foreign experience in scientific, technical and innovation policy, as well as commercialization of innovations, taking into account which proposed conceptual guidelines for organizational and financial support of the effectiveness of the innovative component of competitiveness: economic mechanisms (direct budget investments; preferential lending; integration with foreign institutions; financial activities; increase the share of GDP aimed at financing innovation processes, development of an effective set of measures to attract international grants and household savings as investments to implement the concept of innovative development of the country’s economy, etc.); organizational mechanisms (formation of integration clusters using the potential of education, business, government, public; state assistance in the development of innovation infrastructure, etc.). Keywords:innovations, financial support of innovative development, country competitiveness, innovation system, cluster, regression, correlation, integration processes. JEL Classification O11, O19, O16, O33, E62, F20 Formulas: 1; fig.: 5; tabl.: 3; bibl.: 12.