State of investment provision of innovative activities of economic entities in Ukraine

Abstract

The purpose of the research was to investigate the state of investment support for the innovative activities of Ukrainian business entities. Methods. The methodological basis of the study was the works of domestic scientists, official statistical information, devoted to the issues of investment support for innovative activity. In developing and solving the tasks, a complex of general scientific and special methods was used: comparative and economic and statistical methods – to assess the costs of innovation of industrial enterprises by sources of financing; expert assessment and generalization – to form proposals. The results. The share of research and development expenditures in GDP in Ukraine remains extremely low, ranging from 0.32 % in 2023 to 0.38 % in 2021. The share of research and development expenditures from the state budget in GDP ranges from 0.12 % in 2023 to 0.21 % in 2022. According to operational data and estimates, the volume of products (goods, services) sold by enterprises (innovatively active and non-innovative) in 2024 amounted to 9.4 trillion UAH. At the same time, the volume of innovative products (goods, services) sold by enterprises amounted to 191.7 billion UAH in 2024, the share of innovative products in Ukraine amounted to about 2.1 % of the total volume of sales (21.9 % to the total volume of products (goods, services) sold by innovatively active enterprises). Analysis of financing of innovation activities of Ukrainian enterprises shows that the main source is the companies’ own funds (71.8 %). This indicates the insufficient development of other financing mechanisms, such as state support, venture capital and foreign investments. Compared to 2022, innovation spending in 2024 increased by more than 2 times and amounted to 15.1 billion UAH. In general, the investment climate in Ukraine is unfavorable for investors, which is largely due to military operations. The main challenges and problems of investment support for innovation activities include the lack of internal resources, external factors (the war significantly affects the investment attractiveness and security of investments, although there is interest in restoration), inflation risks and limited access to loans complicate the financing of long-term innovation projects and insufficient coordination of actions between the state, science and business. Conclusions. The state of investment support for innovation activity in Ukraine is complex, characterized by insufficient funding, dependence on external factors and war, but there is potential for development due to state support, international programs and small business activity, which requires a comprehensive approach, improving the investment climate and stimulating innovation through various sources, noting the growth of interest in innovation despite the challenges. Innovations not secured by investment are only a scientific construct. It is worth noting that among investment-secured innovations, innovations secured by investment in financial capital and innovations secured by investment in intellectual capital can be distinguished. In general, research and development is a key factor that provides companies with a competitive advantage in the market, promotes technological progress and economic growth, creating new jobs and increasing productivity.