Abstract

The aim of the article. The purpose of the article is to suggest the mechanism which will define the priorities in financing the innovative activity and distributing the assets attracted by the regional authorities among submitted projects.  The results of the analysis. The results of the research show that the main factors which hinder the innovative activity of businesses in Ukraine are limitation in financial resources, defects of lawmaking, the necessity of strict expenditure optimization and economic factors such as risks and a long payback period.  The main task of the innovative management on a regional level is to choose and apply the most optimal management mechanisms of innovative processes for certain economic conditions and to further ensure the rational use of the resources available in the region. To focus the means of encouragement for the businesses in the region to improve their innovative activity, the authors suggest the financing mechanism of the innovative activity of the regional businesses which consists in attracting public / utility company «Agency of the regional council development» (created in 2014) and conferring such additional powers: to ensure complete and timely asset incoming in compliance with the determined priority of innovative activity trends; to carry out credit operations, the right to be a guarantor and to allocate assets on deposits in bank institutions. The scheme of financing mechanism of the innovative activity by the Agency of the regional development was worked out. The algorithm of the choice of innovative projects for civil financing at the expense of the accumulated assets which determines the indicator of priority financing according to a parameter that identifies the hierarchy of scientific-technological priorities was grounded; the latter will be used on  a branch and regional level and real branch potential of the economic activity is taken into account; the algorithm is adjusted to the degree of the project innovation and its significance for  a certain region. The suggested mechanism will allow to avoid non-effective and non-purpose use of deficit assets and to prevent the situation when socially necessary and strategically important projects for the region are not implemented because of the lack of interest from the investors. Thus, the application of this model for the management of financing the innovative regional development gives hope for the enhancement of the innovative activity of the region. Conclusions and directions of further researches. In further research, it is expedient to pay attention to studying new, more efficient mechanisms of the enhancement of the innovative activity of both producers and investors and self-governing authorities on a regional level.  

Keywords: innovative activity, financing of innovation activity, government regulation in the region, degree of project innovation, mechanism of innovative projects selecting

JEL Classification: O38, O33, R38.

Cite as: Zhavoronkova, H., Gomeniuk M. & Zhmudenko, V. (2016). Enhacement of the role of public regulation in financing of innovative activity of the region. Marketing and Management of Innovations, 3, 130-144. https://doi.org/10.21272/mmi.2016.3-10

This work is licensed under a Creative Commons Attribution 4.0 International License

References

1. Lebedyeva, L.V. (2014). Suchasna innovatsiina polityka derzhavy v Ukraini: problemy ta perspektyvy reformuvannia [The modern innovation policy in Ukraine : problems and prospects of reform]. Efektyvna ekonomika – Effective economy, 1. Retrieved from http://www.economy.nayka.com.ua/?op=1&z=2664 [in Ukrainian].
2. Androshhuk G.O., Davymuka S.A., & Fedulova L.I. (2015). Natsionalni innovatsiini systemy: evoliutsiia determinanty rezultatyvnosti [National innovation systems: evolution determinants of effectiveness]. K. Parlam. vydavnytstvo [in Ukrainian].
3. Kozoriz M.A., Smovzhenko T.S., & Kuznyeczova A.Ya. (2006). Upravlinnya innovatsiinymy protsesamy v rehionakh [Management of innovation processes in the regions]. Lviv LBI NBU [in Ukrainian].
4. Chyzhova, V.I. (2006). Efektyvnist rehionalnoi innovatsiino-investytsiinoi polityky [The efficiency of regional innovation and investment policy]. Zbirnyk materialiv Vseukrayinskoyi naukovo-praktychnoi konferentsii «Investytsii ta innovatsiini protsesy v promyslovosti» – All-Ukrainian scientific conference «Investment and innovation processes in the industry». Dnipropetrovsk [in Ukrainian].
5. Papp, V. (2007). Priorytetni napriamky formuvannia rehionalnoi innovatsiino – investytsiinoi polityky [Priority directions of formation of regional innovative – investment policy]. Economist – The Economist, 9, 40-42 [in Ukrainian].
6. Fedulova, L.S. (Eds). (2013). Rehionalni innovatsiini systemy Ukrainy: stan formuvannia ta rozvytku v umovakh intehratsiinykh proysesiv [Regional innovation system of Ukraine : state formation and development in the integration process]. NAN Ukrainy, DU «In-t econ. ta prognozuv. NAN Ukrainy».  Kyiv [in Ukrainian].
7. Ofitsiinyi sait Holovnoho upravlinnia statystyky u Cherkaskii oblasti [Official website of the Main Statistical Office in Cherkasy region]. ck.ukrstat.gov.ua Retrieved from http://www.ck.ukrstat.gov.ua/source/arch/2016/djerelafinans_15.pdf [in Ukrainian].
8. Ofitsiinyi sait Holovnoho upravlinnia statystyky u Cherkaskii oblasti [Official website of the Main Statistical Office in Cherkasy region]. ck.ukrstat.gov.ua Retrieved from http://www.ck.ukrstat.gov.ua/source/arch/2016/vrp_14_1.pdf [in Ukrainian].
9. Ofitsiinyi sait Holovnoho upravlinnia statystyky u Cherkaskii oblasti [Official website of the Main Statistical Office in Cherkasy region]. ck.ukrstat.gov.ua Retrieved from http://www.ck.ukrstat.gov.ua/source/arch/2016/innov_dinam_15.pdf [in Ukrainian].
10. Fedulova, L.S. (2012). Kontseptualna model innovatsiinoi stratehiii Ukrainy. [Conceptual model of innovation strategy of Ukraine]. Ekonomika i prohnozuvannia – Economics and Forecasting, 1, 87-100 [in Ukrainian].
11. Lytvyn, M.H. (Eds). (2015). Naukova ta innovatsiina diialnist v Cherkaskii oblasti [Research and Innovation in the Cherkassy region].Cherkasy [in Ukrainian].
12. Biudzhetnyi kodeks Ukrainy: osnovni zminy ta mexanizmy yikh realizatsii v chastyni detsentralizatsii finansiv, zmitsnennia materialnoi ta finansovoi osnovy mistsevoho samovriaduvannia [Budget Code of Ukraine : key changes and the mechanisms of their implementation of the decentralization of finance , strengthening the material and financial basis of local government]. Retrieved from http://rayrada.gov.ua/wp-content/uploads/2015/01/Sladi-na-naradu-v-KMU-05.08.14.pdf [in Ukrainian]. 
13. Ramskyi, A.Yu. (2014). Investytsiinyi potentsial domohospodarstv [Investment potential of households]. Kyiv: KNUDT [in Ukrainian].
14. Proekt Zakonu pro vnesenna zmin do Konstytutsii Ukrainy (shchodo detsentralizatsii vlady) [Draft Law on Amendments to the Constitution of Ukraine (concerning the decentralization of power)]. w1.c1.rada.gov.ua. Retrieved from http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=55812 [in Ukrainian].
15. The Bloomberg innovation index (2015). The Results. Retrieved from http://www.bloomberg.com/graphics/2015-innovative-countries/ [in English].
16. Global innovation index 2015 report (2015). www.globalinnovationindex.org. Retrieved from https://www.globalinnovationindex.org/content/page/gii-full-report-2015/ [in English].
17. The world fact book (2015). www.cia.gov. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/rankorder/2004rank.html [in English].