FINANCIAL FACTORS IN FORMING THE INNOVATIVE FOUNDATION OF THE POST-WAR ECONOMIC REVIVAL
Authors:   Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Ukraine, Lunina Inna , Bilousova Olena ,   Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Ukraine
Published: December 2023

Ensuring an effective post-war revival of the Ukrainian economy should be based on the activation of new factors of economic development that accelerate innovative structural changes and productivity growth of the national economy. Successful adaptation to new conditions and priorities requires government measures to support innovative economic development. The limited fiscal space in crisis and post-crisis periods gives rise to discussions on the use of counter-cyclical or pro-cyclical fiscal policy, the choice of approaches to providing government support for research and development and innovations. The purpose of the work is to study the financial factors in the formation of the innovative foundation of the post-war revival of the Ukrainian economy and to develop recommendations for state support of research and development and innovations of business entities. Methods of systemic and historical-logical analysis, structural-functional analysis and statistical comparisons were used.Implementation of the required tasks provides for the generalization of theoretical arguments and the results of empirical studies to identify the relationships between innovation and economic growth, the role of public capital in productivity growth and the drivers of entrepreneurial innovation. The subjects of the study were the types and tools of budgetary and tax support for the innovative development of national economies, trends in fiscal support for research and development and entrepreneurial innovation, international experience of government stimulation of innovative activities of enterprises in crisis periods and post-crisis conditions.In the result of the study, prerequisites for increasing efficiency and effectiveness of the implementation of innovation policy in crisis and post-crisis conditions were identified, including strengthening the targeting of instruments and measures of state support for research and development, increasing attention to supporting entrepreneurial innovations of small and medium-sized enterprises; increasing government support for high-priority research and development expenditures and activities that are advisable to maintain in the long term; expanding measures to commercialize the results of scientific research and development; strengthening links between public and private developments; promoting cooperation in complementary areas of economic activity; funding research and development aimed at reducing systemic risks and increasing the security of various spheres of life (food security, energy security, health care security and cyber security). The results of the study, which have practical significance, include proposals to enhance the role of the government in innovation policy by increasing budgetary investments in material and institutional infrastructure, which creates the necessary conditions for successful innovation; defining clear goals for specific government support measures and ensuring a balance of support instruments (tax incentives for research and development, direct budget support for private sector research and development, other budget expenditures for research and development); improving the information basis for making fiscal decisions; providing budgetary support for high-risk, long-term research to create public goods or knowledge with high dissemination potential; expansion of public procurement of innovative goods and services; ensuring coordination of innovative transformations.