ANALYSIS OF THE DEPENDENCE OF ECONOMIC DEVELOPMENT OF THE STATE ON THE REGULATION OF RESEARCH AND INNOVATION EXPENDITURES

Introduction. The article is devoted to the justification of the dependence of the state's economic development, characterized by the GDP per capita indicator, on the regulation of the share of research and innovation expenditures in the state's GDP and the level of employment of the population in relation to the volume of the working population. Purpose. The purpose of the article is to assess the dependence of the economic development of the countries of the world and Ukraine on the volume and dynamics of research and development expenditures by constructing a modified Cobb-Douglas model. Materials and methods. The theoretical and methodological basis of the research is a comprehensive approach to the application of general scientific and special methods of cognition, namely: induction and deduction, synthesis, analysis, abstraction, methods of economic analysis. When conducting scientific research, scientific research and publications, statistical data, reports of international and state organizations, official resources and legislative acts served as materials. Results. Based on the construction of an economic-mathematical model based on the modified Cobb-Douglas model, the specificity and order of application of which in the work characterize the methodological basis of the study, the hypothesis regarding the presence and severity of this dependence was confirmed for six countries of the world. The results of the practical approbation of this model established that among the countries under consideration (USA, China, Germany, Poland, Ukraine, and the EU), the GDP per capita indicator is the most sensitive to changes in research and development expenditures and the one that has a direct relationship population of the People's Republic of China, Poland and the USA. For these countries, it is advisable to further stimulate the growth of research and innovation spending, which will have a positive impact on their economic development. With regard to Germany and the EU as a whole, the connection is indirect, which indicates a certain exhaustion of the potential for GDP per capita growth due to innovation stimulation, and requires the analysis and search for other reserves and resource bases of economic development, while simultaneously paying attention to the problem of the effectiveness of R&D expenditures (with the aim of orienting them to the need to ensure economic development). In Ukraine, the growth of expenditures on R&D did not contribute to the growth of the GDP level, which actualizes, first of all, the problem of the effectiveness of these expenditures, the value of their implementation in practice through an innovative product, the validity of their structure and size. Discussion. Prospects for further research based on the results presented in the article are to solve the problem of ensuring the effectiveness of public administration and regulation of innovation expenditures as a factor in the development of the national economy. This problem is supposed to be solved by substantiating state investment priorities in innovative development, as well as by substantiating specific tools, forms and methods of state administration the innovation process at the micro-, meso- and macro-level, which would contribute to the development of the state's economy.