Problems of institutional-organizational maintenance of investment-innovative development in a region

Abstract

The paper dwells on the issues of institutional assistance to investment-innovative development in Ukraine. The paper emphasizes that low level of investment-innovative activity in Ukrainian regions is the major obstacle to economic development. It is caused, on one hand, by the low efficiency of separately functioning innovation sphere, innovative infrastructure and innovative entrepreneurship, and on the other hand – insufficient and inefficient institutional maintenance of innovative activity. The paper aims to research the features and problems of institutional maintenance of investment-innovative development in a region and to find the ways of its improvement. The authors mention that institutional maintenance of investment and innovative activity is the set of state and non-governmental institutions, which provide the availability of legal, organizational and economic conditions necessary to conduct and develop investment and innovative activity. The major tasks of institutional maintenance of innovative development in Ukraine are analyzed, including the creation of favourable entrepreneurship climate in the regions to absorb innovations and form consumers’ demand for innovative products, conditions of development of knowledge production basis, efficient system of financial provision of innovative process and efficient innovative capacity, etc. Main legal and regulative acts that provide the foundations of economic development in Ukraine are analyzed. The paper emphasizes that despite many legal and regulative acts directed at support of innovative development, the forming of legal basis of innovative activity in Ukraine is not complete. It is fragmentary, controversial and not fully corresponding to the foundations of innovative and smart economy. Therefore, it requires the review in terms of its improvement. European experience of approaches, principles, forms and methods applied in institutional system is examined. EU innovative strategies provide for efficient functioning of innovative economy model, granting tax and credit preferences, target funding of certain innovations, public procurement, restructuring and modernization of public enterprises, use of venture capital, creation and development of new innovative structures.