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Current Trends in Financing Innovative Development of Industrial Enterprises in Ukraine

Author

Listed:
  • Nataliia Spasiv

    (West Ukrainian National University, Ternopil, Ukraine)

  • Olga Kneysler

    (West Ukrainian National University, Ternopil, Ukraine)

  • Iryna Hyzela

    (West Ukrainian National University, Ternopil, Ukraine)

Abstract

Nowadays, the role and importance of scientific developments in financing the innovative development of enterprises in Ukraine is growing more than ever because innovations are becoming the driver of all transformations. Despite the significant scientific output of Ukrainian researchers, the dominant problem that must be solved immediately is the search for effective sources of financial resources to ensure the development of innovative activities of industrial enterprises since they form the lion's share of the real GDP of the state. The article aims to assess current trends in financing innovative activities of industrial enterprises to substantiate how to ensure their innovative development in preserving competitive advantages on the market. The results of this study were obtained by analyzing and summarizing the conclusions made by Ukrainian scientists in previous studies and are the basis for substantiating the financing mechanism for the innovative development of industrial enterprises. In particular, it was established that the level of innovative development of enterprises in the real sector of the economy is influenced by general economic indicators, such as the level of innovative activity and the innovative capacity of the state. Ukraine's position in international rankings based on indices of innovation capacity was evaluated. The peculiarities of forming financial resources to ensure innovative development at the macro level were revealed. The results of the analytical assessment of the sources of financing of innovative activities of industrial enterprises show that the state's share in the financing of innovations is insignificant. Instead, the vast majority of innovations are financed by the funds of industrial enterprises, which is a negative trend in wartime. Several measures were proposed that will help increase the level of innovative activity of industrial enterprises by optimizing the funding sources for the innovation implementation process. The implementation of the measures listed in the article will be a catalyst for the innovative development of industrial enterprises. It will create a stable platform for financing innovations in Ukraine.

Suggested Citation

  • Nataliia Spasiv & Olga Kneysler & Iryna Hyzela, 2023. "Current Trends in Financing Innovative Development of Industrial Enterprises in Ukraine," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 126-137, September.
    • Handle: RePEc:iaf:journl:y:2023:i:3:p:126-137
    DOI: 10.33146/2307-9878-2023-3(101)-126-137
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    References listed on IDEAS

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    1. Viktoriia Makarovych, 2023. "The Constitutional Role of Accounting in Ensuring the Implementation of Innovative Activities of the Enterprise," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 29-37, June.
    2. Guariglia, Alessandra & Liu, Pei, 2014. "To what extent do financing constraints affect Chinese firms' innovation activities?," International Review of Financial Analysis, Elsevier, vol. 36(C), pages 223-240.
    3. Kim, Seokchin & Lee, Hyunchul & Kim, Joongi, 2016. "Divergent effects of external financing on technology innovation activity: Korean evidence," Technological Forecasting and Social Change, Elsevier, vol. 106(C), pages 22-30.
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    Keywords

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    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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