Tools of Ensuring Transformational Changes in Economic Activity of Industrial Enterprises

• Main Author: Plakhotnik Olena
• Format: Article
• Language: English
• Published: Mykolayiv National Agrarian University 2019-05-01
• Series: Modern Economics
• Online Access: https://modecon.mnau.edu.ua/en/tools-of-ensuring-transformational-changes/

Introduction. The current state of the economy requires the transformation of the principles of forming a system of the state’s economic development, the restructuring of the system of institutions and establishments, in accordance with the new economic conditions. The functioning of current institutions and establishments is a major factor in the low competitiveness of industrial enterprises and Ukraine as a whole. The basic principle of forming a system of economic development of the state is to ensure transformational changes in the economic sphere of industrial enterprises based on imperative state participation in the innovation activities of business entities. Purpose. The aim of the article is to develop a theoretical and methodological substantiation of imperative state participation in the innovation activities of business entities as the main tool for ensuring transformational changes in the economic sphere of industrial enterprises. Results. It is proved that government regulation and support of innovation processes are the leading factors in the development of innovations. Government intervention is caused by the fact that the creation and development of innovative production is a more complex process, capital-intensive and labor-intensive, requiring constant growth, enrichment of knowledge, a high level of education and skills of workers compared to traditional production. Therefore, a stimulating, supporting, regulating, coordinating and sometimes directing principle is required, which the state acts as. Based on the study of the experience of the European Union, the role of the state in the successful development of the innovation sphere is substantiated, which promotes closer cooperation between educational institutions, public and private research organizations, and enterprises; increases the level of innovation in production; increases the cost of research and development work. For state support programs for innovative projects of industrial enterprises, the application of the “cost-results” direction analysis method has been developed, which allowed making decisions on innovative projects of industrial enterprises, making the right choice between different uses of resources by identifying and assessing costs and benefits in such a way that allowed to evaluate their consequences in terms of the implementation of the goals and objectives of the industrial and socio-economic development of the territory. The economic-mathematical model of the variable distribution of limited amounts of state funds among industrial enterprises has been improved, which can be actively used in the practice of financial planning of ministries and departments. Conclusions. Thus, the economic development of industrial enterprises on an innovative basis requires significant amounts of financial resources and attracting as an investor to the state through the use of targeted integrated programs. The application of the considered approaches to the management of the process of distribution of financial resources between industrial enterprises will make it possible to carry out transformational transformations in the economic sphere of their activity by activating the innovation component.