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State investment and innovation policy for the stimulation of business facilities in the market economy

The successful implementation of the modernization of the Ukrainian economy requires the implementation of a consistent systemic state policy aimed at a radical increase in the volume of investments and its direction, first of all, to the technological renewal of existing production capacities and the creation of new innovative industries. In the conditions of a shortage of investment resources in the real sector of the national economy, limited opportunities for state investment and the presence of some risks, to continue the upward trends of investment activity, the state needs to use a vast arsenal of mechanisms and tools aimed at stimulating the investment activity of the corporate sector of the economy, attracting internal and external investment resources and creation of an effective investment process management system.

The economic basis of the scientific, technical and innovation policy is the attitude of the state to the scientific, technical and innovative spheres of the national economy, to associations of people engaged in scientific, technical and innovation activities, as well as to the results of scientific, technical and innovation work. This attitude of the state is reflected in the knowledge and understanding by the state apparatus of the role and importance of science, the products of scientific and technical activities in the state economic system, as well as in the ability to most effectively direct all existing and potential opportunities in the scientific, technical and innovation spheres to achieve tactical and strategic goals of the social and economic policy of the state.

Within the framework of a single holistic economic growth policy, the state investment and innovation policies are linked and interact with other socio-economic policies (industrial, structural, financial, etc.). Investment and innovation policies are the basis for other policies in the current environment, as the results of investment and innovation activities are the driving force in all sectors and industries of the economy. In other words, innovation policy shapes the development vector of the entire economy and its subsystems, while investment policy ensures the achievement of goals within the established development vector.

State innovation and investment policy expresses the political and economic orientation of innovation and investment activities and is implemented through a system of measures that form state innovation and investment regulation.

Innovation receptivity is an integral part of innovation potential, which reflects an enterprise’s ability to implement and apply innovations.

An enterprise’s scientific potential is also an integral part of its innovation potential, reflecting its ability to generate and develop innovations for its own needs.

Today in Ukraine, the following levels of relations in the fields of science, technology, and IT can be distinguished:

  • macroeconomic (state) level;
  • mesoeconomic (state) level;
  • microeconomic (enterprises (organisations)) level.

At the macroeconomic (state) level, the goal, objectives, principles, socio-economic policy, priorities of the country’s development as a whole, and directions of innovation and investment development are determined, state programmes and projects are prepared and implemented, and state support is provided for projects of national importance and aimed at solving constitutional problems.

At the mesoeconomic level, the innovation and investment system should ensure a balanced implementation of state policy in the region and the region’s own policy and ensure interregional innovation and investment cooperation.

At the microeconomic level, innovative products are developed and produced, and services are provided to support innovation and investment policy, the interests of interacting industrial enterprises are coordinated with the help of the relevant structures (professional self-regulatory organisations of entrepreneurs, etc.), and innovation and investment projects are created and implemented.

The state’s activities in science, technology, innovation, and investment, driven by its interests and capabilities, can solve only a part of the problems associated with using and developing the region’s scientific, technical, and IT potential. The regions themselves bear no less responsibility for solving these problems.

An essential feature of innovations is their market demand. Therefore, innovations must not only be new to society and to a particular organisation but also meet market demand, i.e., have market potential, as an indicator of an enterprise’s efficiency and the realisation of its innovation potential.

Unfortunately, the state currently has limited opportunities to provide financial support for the innovation activities of enterprises, but even indirect measures to stimulate the introduction of innovations are not sufficiently used in Ukraine.

Today, the main task for Ukraine is to create conditions for ensuring competitiveness, which at the current stage of society’s development is determined by the level of educational qualifications of the population, the state of fundamental research, the structure of R&D and the extent to which innovations are introduced into production. This applies to choosing an innovation strategy, setting priorities, and creating a legal framework.

The success of this area depends on the consistency and radicality of economic transformations. All decisions on contracting should be made by business entities independent of the state, entrepreneurs who manage their own or borrowed resources and are responsible for the consequences of their decisions with their property. The state should play the role of regulator of tax, customs and, indirectly, credit policy.

Moving towards technological transformation is impossible without the creation of appropriate organizational institutions that facilitate the commercialisation of innovations and stimulate competition between enterprises. These institutions, together with the development of innovation, allow us to draw a conclusion about the degree of the state’s technical and economic development.


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