The impact of financial policy upon innovation activity in the Republic of Belarus

Abstract

The object of this research is the financial policy and indicators that characterize it. Financial policy certainly has a significant impact upon the actions of innovation actors along with other important factors: access to scientific and technological information, availability of highly skilled personnel, level of innovation infrastructure, status of development of domestic and foreign target markets, availability of domestic market for foreign investment, protection of the rights of investors, trusts of the manufacturers in national currency, absence of obstacles to starting a business, consumer preferences, etc. Using the method of graphical analysis, the author illustrates the dynamics of innovation behavior of the Belarusian companies in the context of changing the key financial indicators. The management of available resources in the company – accrual, savings, or investment into innovation development – would depend on the economic conditions established in the country. The conducted analysis allows concluding on interdependence between the financial results of the companies and their innovation activity, the amount of borrowings and innovation costs, as well as currency rates on the investment in innovation.