FINANCIAL AND ECONOMIC REGULATIONS FOR INNOVATIVE DEVELOPMENT OF ENTERPRISE CLUSTERS IN UKRAINE

Abstract

The paper presents the results of a comparative study on current financing practices for innovative activity which demonstrates that the European Union has access to a wide range of sources of finance for research and innovations. In contrast to European practice, the regulation framework in Ukraine in fact relates to budget funds allocation, only, which is sufficient for mere base funding. It is argued that in modern realia, a necessary step forward should be the development of a relevant toolkit to ensure government support for boosting innovations in small and medium-sized businesses, in particular, the creation of a separate institution to support innovative development of enterprise clusters. In order to address the most pressing socioeconomic issues, such as challenges for the quality of economic growth through the development of innovative high-tech clusters, enhancing the economy competitiveness or integration into the international research and technology initiatives, programs and alliances to help domestic companies gain their competitive edge, there is a critical need to improve the government support policies and guidelines for further entrepreneurship development. Reasons have been provided that the most effective ways to attract foreign investments refer to expanding the forms of their attraction, establishing the national government regulations for signing production sharing agreements while using different funding sources to differentiate the terms of investment agreements between domestic and foreign businesses, along with building a number of strategies towards Ukrainian stock market stabilization, etc.