Innovative Model for the Development of the Territorial Economic System

In today's economic conditions, in particular transformational changes in the economic system of the country and its regions, the formation of effective approaches to providing innovative development takes place. The purpose of the article is to study the peculiarities of the innovation development of the country's economy and to form an innovative model of economic growth both at the national and regional levels. Priority factors that outline investment activity are effective monetary policy, well-capitalized banking system, rational cash flow management in the interests of development of national production, and legislative and legal regulation of problem issues concerning the protection of foreign investors. The main factors that have a negative impact on innovation and investment activity in the country have been identified, among them the instability of the legislation, the number of agreements necessary for lending and pledging from the State Property Fund of Ukraine, tax authorities, and the absence of incentives by the state of financial and credit institutions to intensify investment lending. The result is an outline of the recommendations on necessity, when forming a new innovation model, taking into account the existing potential and unused resources of territorial development, as well as activating the functioning of the national markets of innovation activity, which in the future will ensure the balanced development of the economic territorial system on an innovative basis, will give an impetus to the formation of a productive innovative environment with an appropriate innovation infrastructure, will promote innovation in business with further growth and quality of life and welfare of the country and its regions. It has been emphasized that in order to increase the investment income in the innovative sphere, first of all, in order to form an innovative model of development, it is necessary to form effective legislative provision, to involve scientific, first of all national potential, with the obligatory emphasis on the state support of the innovative process of growth of the economic system and state guarantees for commercial banks , which will finance lending of country-priority innovation projects and programs. Prospects for further research will address the identification of problematic issues regarding the formation of an innovative environment within the territorial economic system.