Державна фінансова підтримка розвитку інноваційної діяльності в Україні
State Financial Support for the Development of Innovation Activities in Ukraine

Summary/Abstract: The purpose of this study is to assess the state of the state financial support for the development of innovation activities in Ukraine and to identify, on this basis, the priority directions of transformation of financial instruments aimed at activating innovation activity.It is determined that the state financial support for the development of innovation activities is carried out through the use of direct financial support instruments and indirect financial support instruments. Direct financial support instruments are: budget financing, financing of state-owned scientific institutions, financing of state-owned innovative financial and credit institutions, grants, government contracts, state guarantees,preferential loans. Indirect financial support tools include: tax breaks, customs incentives, business incubators,science parks, intellectual property and copyright protection, and the development of innovative infrastructure.The study of the current state of state financial support for the development of innovation activity in Ukraine suggests the passive participation of the state in the financing of innovation activities. As sources of direct state financial support for innovation activity are the funds of state and local budgets, their deficit results in low efficiency of using direct financial support instruments. Given the limited budgetary resources available,the government's focus should be on the implementation of progressive instruments of indirect state financial support that have proven effective in leading economically developed countries. It is established that tax incentives are the most widespread instruments of indirect state financial support and stimulation of innovation activity in world practice.Granting of tax privileges should be aimed at: expansion and (or) development of innovation activity of business entities, carrying out of scientific research and scientific and technical works, use and commercialization of their results; introduction of innovations; modernization of production; encouragement of long-term capital investment in innovative projects, programs, technologies, both domestic and foreign investors,including institutions of the banking sector through the provision of preferential loans to actors of innovation.The priority directions of reforming tax legislation in Ukraine, aimed at ensuring the development and activation of innovation activities, can be: providing a tax credit for research and development; introduction of special depreciation regimes; tax holidays; establishment of a system of tax rebates.

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