The Essence and Components of the Mechanism for Investment Provision of the Innovative Development of the Industrial Sector of the State

• Main Authors: Vasyltsiv Taras G., Kyrychenko Oksana S., Zajchenko Volodymyr V.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2019-06-01
• Series: Bìznes Inform
• Subjects: industry; the industrial sector of the state; the mechanism of investment support; the components of the mechanism; innovative development
• Online Access: http://www.business-inform.net/export_pdf/business-inform-2019-6_0-pages-140_145.pdf

The article is aimed at researching the essence and components of the mechanism for investment provision of innovation development, the implementation of which would ensure a long-term dynamic growth of both the industrial sector and the economy of the country as a whole. The essence and components of the mechanism for investment provision of innovative development of the country’s industrial sector are analyzed. The need to introduce an investment mechanism for the innovative provision of the development of industry is defined, including: objects, entities, purpose, principles, functions, legal and regulatory issues, institutional, informational, infrastructure provision of its functioning. It is defined that the mechanism for investment provision of the innovation activity in industry is implemented both through market mechanisms for investment provision, and through the internal corporate mechanisms of individual enterprises, but the State has a dominant role in creating economic, legal mechanisms to attract and stimulate investment directed towards an innovative development. Thus, the State creates a legal field, forms relevant institutions, provides economic incentives and mechanisms and also activates, stimulates and regulates the processes of investment provision of the innovative industrial development. The authors propose formation and comprehensive functioning of the mechanism along with an instrumentarium for the State regulation of investment and innovation provision of industrial development, in order to ensure both coordination and action of the State regulation, as well as the formation and activation of both the market and the internal corporate mechanisms for the investment provision of the industrial development.