INNOVATION AND INVESTMENT PROCESSES IN UKRAINE: CURRENT REALITIES AND FUTURE PROSPECTS

The article analyses the processes of investment support for innovation in Ukraine during the fullscale invasion. The main tasks of Ukraine, together with international partners, are to improve the regulatory framework to promote entrepreneurship; financial support in the form of grants, subsidies, venture capital investments; non-financial assistance in providing access to international markets, mentoring, training programmes; and accumulation of capital from Western donors to support domestic innovation projects. The author systematises the main problems and challenges that affect the attraction of foreign investors, namely: war-related risks; corruption risks; economic instability; currency fluctuations; inflation; imperfect judicial system; complex and expensive logistics; specifics of the domestic market that distinguish it from European approaches; insufficient experience of Ukrainian start-ups in expanding foreign markets; lack of compliance of attractive defence startups with international standards and criteria. By studying the legal regime and instruments of influence on the intensification of investment in the development of innovation, the author analyses the government’s actions to reduce the negative factors affecting innovation development, namely: insurance of investment risks through the Export Credit Agency of Ukraine and cooperation with international institutions in this area; provision of loans, tax benefits and incentives to attract investment in priority sectors. The author outlines important areas of activity and tasks of the state to eliminate administrative barriers to starting a company; expanding various programmes, grants and tax benefits for entrepreneurs engaged in innovative developments; creating a special tax and economic space to attract investment in the technology industry; creating the most attractive conditions for foreign business; and improving the level of education in the fields of technology, engineering and mathematics, which can become the foundation for the development of innovations. The author emphasises the importance of formulating a state strategy aimed at rapid changes and effective reforms that would ensure innovative economic development.