Consideration of the peculiarities of the mechanism of stimulating innovative activity

2022 and 2023 are considered the most conflictual years of the Cold War. The confrontation between Israel and Hamas, the escalation of tensions between Serbia and Kosovo, Sudan, Yemen, Karabagh are some of the hot spots that threaten the stability of peace and the world-class economy. 183 armed conflicts were counted for 2023, which is the highest figure for 30 years, and military aggression on the territory of Ukraine has reached the most destructive scale. Research work is an attempt to create a multipolar world, thanks to scientific activity due to the consequences of armed conflicts on the territory of Ukraine.The most important condition for economic growth on the platform of quality renewal of production is the reduction of costs, the production of a quality product, service, and the introduction of innovation.Thus, the object of the study is the dependence of targeted financing of innovations as a direction that will contribute to increasing the level of innovative development of enterprises. It also considers the dependence of targeted financing of innovations as a way to increase the level of innovative development of enterprises under the known impact of military operations on the territory of Ukraine. The problem of the research is the state of innovative development of Ukraine, the factors that caused it, the tools of influence and stimulation from the state, such as tax incentives, attracting investors for the development of small and medium-sized businesses through the creation of favorable economic conditions, using the example of the Diia City tax regime.It also the dependence of targeted financing of innovations, as a direction to increase the level of innovative development of enterprises under the known effects of military actions on the territory of Ukraine. The obtained results are due to such factors as the impact of military aggression on the territory of Ukraine, the pandemic and post-pandemic period, which had negative consequences such as a decrease in the planned volume of production due to the downtime of enterprises, a decrease in labor productivity, changes in the established raw material supply system. The study of the special regime of «Diia City» indicates a positive growing level of interest of investors, in particular foreign ones, in attracting funds for the development of various sectors of the economy, most of all in the field of information services, which contributes to the processes of digitization and integration of Industry 4.0. The results can be used for the strategic planning of economic entities during the war period and the post-war recovery of the economy of Ukraine, where the attraction of innovations is one of the key elements of economic prosperity, and tax incentives are a tool of the state regulatory apparatus.