Financial Instruments of Stimulating Innovative Activities of Enterprises and Their Improvements

Abstract

The article analyzes the importance of innovations as one of the main factors influencing the competitiveness of enterprises and economies of the world. The study is based on the author’s empirical research, grounded on the methodology of analysis of empirical data. The survey was carried out among legal entities and separate departments which operate regardless of its type. The study aimed to determine the importance of financial factors in limiting innovation activity and its potential in stimulating the innovation activity of enterprises. A survey was carried out among the enterprises on the factors that significantly influenced their decision to develop innovative projects or constrained implementation of innovation activities. The key challenges of innovation activity of enterprises were analyzed (law barriers, supply-side barriers, demand-side barriers, barrier on the demand and supply interface, lack of identified priorities, challenges of commercialization of the results of scientific and technical work, as well as weak development of infrastructure, labour problems). The research was also carried out by studying features of using financial instruments to stimulate innovation activity of enterprises, analysis of economic indicators characterizing the innovative activity of enterprises, analysis of strengths and weaknesses of innovation projects, as well as improvement of financial instruments for stimulating the implementation of innovations at enterprises. Based on the conducted research, long‑, medium- and short-term directions of financial support of innovative activity were determined. Financial instruments of stimulation innovation activity of enterprises are improved based on the analysis, taking into account socio-economic, political and other particular features of country’s development where such projects are implemented; studying the experience of implementing real innovative projects, analyzing strengths and weaknesses of these projects, feasibility of implementing similar projects under such conditions. Keywords: innovation, innovation ecosystem, innovative activities, investment, simulation of innovative processes, financial instruments.