FINANCIAL AND ECONOMIC INSTRUMENTS FOR STIMULATING INNOVATION ACTIVITY: A COMPARATIVE ANALYSIS

Abstract

The development of Ukraine's innovation economy largely depends on the effectiveness of financial and economic mechanisms supporting innovation activities, which have undergone significant transformations in recent years in the context of European integration and wartime challenges. The purpose of the study is a comprehensive analysis of financial instruments for stimulating innovation in Ukraine, an assessment of their actual effectiveness through specific economic indicators, and a comparison with Polish practices to identify opportunities for improving the domestic system of innovation development support. The paper systematizes the main financial and economic mechanisms used in Ukraine to support innovation activities, including state grant programs through the National Research Foundation of Ukraine, tax preferences for innovative enterprises, and venture financing mechanisms with state participation. The conducted analysis demonstrated that the volume of state financing for innovation in Ukraine remains insufficient compared to European standards, amounting to less than one percent of GDP, while in Poland this indicator exceeds one and a half percent. It was revealed that despite the presence of legislatively established tax benefits for innovative enterprises, the mechanisms of their practical application require simplification and increased transparency of administration. The comparative analysis with Polish experience allowed identification of promising directions for improving the Ukrainian system, particularly the introduction of automated mechanisms for providing tax credits for research and development, expansion of co-financing programs for innovative projects, and creation of specialized funds to support technology startups. The research results can be used by state authorities in forming innovation development policy and improving existing financial mechanisms for stimulating innovation activities in the context of post-war reconstruction and Ukraine's European integration.