Analysis of state instruments for stimulating innovative technologies in the context of global digitalization

Abstract

The use of innovative technologies implies, on the part of an enterprise, the development of scientific and design strategies for updating manufacturing processes of products, and, on the part of the state, effective tools to stimulate the innovative activity of business entities. Tax incentives lead to a shortfall in public revenues or resources that could be used in other forms of government support. To assess the effectiveness of their use, an analysis of the amount of expenses for their provision and incomes that are received from their use was carried out. For this, the place of innovations in enterprises’ economic activities and their impact on the economy in the context of global digitalization is considered. Directions of innovations’ implementation and their significance in the real sector of the economy are defined. In many countries of the world strategic programs for the development of enterprises’ innovative activities are being developed and improved. Their analysis has shown the relevance of the latter in the context of the implementation of the up-to-date digital technologies. Problems, faced by countries with lower than middle gross income (Ukraine are among them), are outlined. On the basis of peculiarities of state instruments, directed on stimulation of the enterprises’ innovative activity, the expediency of using various types of support for the development of innovative technologies is substantiated – not only from the state, but also from research institutions and enterprises themselves. This can be facilitated by the state through the utilization of appropriate regulatory instruments (budgetary, fiscal, etc.). The analysis of tax incentives effectiveness for innovative activity in advanced countries is carried out. Considered are modern analytical tools for assessing tax incentives for enterprises. The efficiency of tax incentives for their innovative activity in the context of global digitalization has been defined. Possible directions of using state instruments to stimulate innovative technologies in Ukraine have been substantiated. The main requirement for tax incentives for national innovations should be the pursuit by a business entity of activities, aimed at achieving scientific and technological progress in conditions of scientific or technological uncertainty. Tax incentives should be available to innovative enterprises, regardless of their geographic location and size within the state. They should allow the deduction of a part of qualified expenses from the amount of corporate income tax of innovative enterprises. They must be provided on a non-refundable basis within a statutory period of time. They should be designed to minimize the potential for corruption in the provision of incentives and abuse by taxpayers in their use. The government's assessment of expected costs and benefits from fiscal stimulation of innovative activities of Ukrainian enterprises should be similar to the assessment of other types of tax expenses, taking into account the institutional features of the national economic development.