Main factors stimulating innovative development of Ukraine

Abstract

Problem setting. The introduction of the model of innovative development of the national economy requires the improvement of the system of state regulation of investment and innovation processes. It is the transformational trends in the national innovation system that necessitates a comprehensive analysis of the main factors that contribute to innovative development. At the same time, the stimulation of innovation orientation of any country’s development should be considered as part of the model of investment development of its economy, provided that this model has priority in innovative development.

Target of research is to study the main factors promoting innovation. To achieve this goal, structural, comparative and statistical research methods were used.

Analysis of resent researches and publications. Problems of development of the national innovation system and innovation infrastructure, ensuring the development of innovation processes have received considerable coverage in the works of scientists: S. V. Hlibko, O. V. Rozghon, A. M. Liubchych, A. V. Strizhkova and others.

Article’s main body. One way to conceptually organize all the factors that determine innovation in a country is to think about the triangle of innovation success: the factors of the business environment along one side of the triangle; trade, tax and regulatory environment – the other party; and the innovation policy environment – along the third party. An effective business environment includes the institutions, activities and opportunities of the country’s business community, as well as broader societal attitudes and practices that promote innovation. An effective trade, tax, and regulatory environment has a competitive and open trade regime that includes strong government efforts to protect its businesses from foreign mercantilist practices; supporting competitive markets so that new entrants, including those implementing new business models, can thrive; processes that make it easy to open a new business and bring innovation to market; transparency and the rule of law; a reasonable tax burden on business, especially for innovation-based firms and commercial companies. The final stage of the innovation triangle is a complex and powerful system of innovation policy. Although markets and business are key to innovation, without an effective innovation policy, markets will be inefficient.

Conclusions and prospects for the development. Effective innovative development of the country is possible only if there is a developed business, trade, tax, regulatory environment and an environment of innovation policy that can guarantee proper support for public investment in innovation infrastructure. At the same time, for Ukraine to be attractive to foreign investors, legislation on attracting investment must be clear, democratic and stable.