Financial Policy of Innovation Development Providing: The Impact Formalization

Authors: Anastasiia Samoilikova, ORCID: https://orcid.org/0000-0001-8639-5282 Assistant, Junior Researcher, Department of Finance and Entrepreneurship, Sumy State University, Sumy, Ukraine Pages: 5-15 DOI: https://doi.org/10.21272/fmir.4(2).5-15.2020 Download: Views: Downloads: 10 2 Abstract This paper deals with the study of world and European rankings for innovative development. It is emphasized that Ukraine ranks quite low compared to other countries and even its own last year's results. The dynamics of Ukraine's position in the Global Innovation Index, is presented for the period from 2009 to 2019. The paper focuses on the tendency that innovation activity and the high level of its financial support are concentrated mainly in individual countries and regions. In this regard, the relevance of the determining factors / indicators of the greatest influence and the reasons for the unsatisfactory state of innovation development in Ukraine is substantiated. The purpose of the study is to substantiate and formalize the impact of financial policy indicators to ensure innovative development on the overall level of innovative development. In addition, attention is paid to the functional relationship between the level of competitiveness and innovation capacity, a significant positive relationship between the indicators of the country's innovation capacity and the dynamism of business and financial system, and so on. Methodical tools are methods of correlation and regression analysis. As a result, some hypotheses have been confirmed, not confirmed or partially confirmed. The study empirically confirms and theoretically proves that the percentage of Gross Domestic Expenditure on Research and Development (GERD) in GDP, the share of Gross Domestic Expenditure on Research and Development (GERD) represented by the business sector and the share of Gross Domestic Expenditure on Research and Development (GERD) financed by business, the volume of domestic credit to the private sector and ease of regulation / resolution of insolvency – these indicators have a direct (positive), strong dependence and significance of correlation with the general level of innovative development. Keywords: methods of correlation and regression analysis, financial policy, financial support, financial support, functional dependence, innovative development, innovation index, level of innovation, innovation rating. JEL Classification: G18, G32, H50, O31, O32.