FOREIGN EXPERIENCE OF FORMATION OF INCENTIVE SYSTEM FOR INNOVATIVE ACTIVITY OF BUSINESS ENTITIES

Authors

  • T. V. Kuznietsova National University of Water and Environmental Engineering
  • О. I. Levun National University of Water and Environmental Engineering

DOI:

https://doi.org/10.31713/ve4202012

Keywords:

innovative development, business entities, foreign experience, incentive system, incentive forms, incentive methods, incentive mechanism.

Abstract

In the article the foreign experience of formation of incentive system for innovative activity and possibilities of its application in Ukraine are considered. The various methods and tools for stimulation and maintenance of innovative activity, which are successfully used in foreign countries, are covered. State stimulation mechanisms of innovative activity in the developed world countries are researched. The main reasons of low innovative activity of business entities in Ukraine are identified. Support system of innovative entrepreneurship development in economically developed world countries, which includes: improving collaboration between the government and the society, creating conditions, which will promote development of science and education, comprehensive support of scientific developments and investigations, formation of effective incentive system for innovative activity of private sector, involvement in realization of innovative projects, financial support of innovative venture capital funds by the State, is considered. Based on the generalization of foreign experience of formation of incentive system for innovative activity, the main directions toward improving State support of business entities innovative development in Ukraine are formulated. The expediency of creation of various innovative entrepreneurship structures, in particular, innovation centers, technology transfer centers, technology parks, technopolises, venture capital funds, is considered. Innovation policy instruments concerning attracting of investment for innovative activity financing are examined. Above all, among these are direct government funding, receiving of grants, credits, subsidies, ensuring state guaranties, fiscal and tax incentives etc. The main directions of stimulation, development and implementation of innovative business ideas are described.

Author Biographies

T. V. Kuznietsova, National University of Water and Environmental Engineering

Candidate of Economics (Ph.D.), Professor

О. I. Levun, National University of Water and Environmental Engineering

Assistant

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