DEPÓSITO LEGAL ZU2020000153  
ISSN 0041-8811  
E-ISSN 2665-0428  
Revista  
de la  
Universidad  
del Zulia  
Fundada en 1947  
por el Dr. Jesús Enrique Lossada  
Ciencias del  
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Ingeniería  
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Año 14 N° 39  
Enero - Abril 2023  
Tercera Época  
Maracaibo-Venezuela  
REVISTA DE LA UNIVERSIDAD DEL ZULIA. 3ª época. Año 14, N° 39, 2023  
Olexander Svitlychnyy et al/// State Policy for the Development of Innovative Entrepreneurship  278-294  
DOI: http://dx.doi.org/10.46925//rdluz.39.15  
State Policy for the Development of Innovative Entrepreneurship:  
Experience of Ukraine  
Olexander Svitlychnyy *  
Vladyslav Teremetskyi **  
Paul Herasymiuk ***  
Petro Kravchuk ****  
Serhii Knysh *****  
ABSTRACT  
The article’s purpose is to analyze prospects for innovative development of entrepreneurship and generalize  
main directions of Ukraine’s state innovation policy. Research methods are: monographic analysis, system  
analysis, comparative legal analysis, generalization, forecasting, etc. We substantiated the necessity for  
elaborating and implementing effective measures aimed at developing innovative entrepreneurship and  
increasing country’s innovative potential due to the improvement of legal tools of the state policy for  
developing innovative entrepreneurship. We emphasized that there is possibility to develop Ukraine’s  
potential of innovative entrepreneurship and strengthen commercialization of innovations due to the current  
legislation’s improvement, particularly through implementing European law norms into the national legal  
system. It is proven that the effective implementation of scientific technical progress achievements can occur  
only under condition of establishing cooperation between scientific and educational institutions and  
enterprises; due to well-chosen financial, organizational and regulatory measures to support innovations’  
development and commercialization. It is concluded that formation of Ukraine’s modern innovation policy  
should be based on the modernization of enterprises, active attraction of investments through participation  
in national and international projects, integration of information technologies into the production sphere  
and effective management solutions aimed at our state’s participation in global innovation processes.  
KEYWORDS: state innovation policy, innovations, scientific and technological progress, innovative  
entrepreneurship, innovation support programs.  
*
Professor of the Department of Civil and Commercial Law National University of Life and Environmental Sciences of  
Ukraine, Kyiv, Ukraine. ORCID: https://orcid.org/0000-0003-0485-3804. E-mail: a.svetlichnyj@ukr.net  
*
* Professor, leading research scientist of the Department of International Private and Comparative Law, Academician F.H.  
Burchak Scientific Research Institute of Private Law and Entrepreneurship, National Academy of Legal Sciences of Ukraine,  
Kyiv, Ukraine. ORCID: https://orcid.org/0000-0002-2667-5167. E-mail: vladvokat333@ukr.net  
*
** Doctoral student of the S. I. Yuriy Department of Finance, West Ukrainian National University Ternopil, Ukraine.  
*
*** Associate Professor, Dean of the Law Faculty of the Private higher educational institution “European University”, Kyiv,  
Ukraine. ORCID: http://orcid.org/0000-0003-4246-974X. E-mail: p.kr@ukr.net  
*
**** Associate Professor, Head of the Department of Constitutional, Administrative and International Law, Lesya Ukrainka Volyn  
National University, Lesya Ukrainka Volyn National University, Lutsk, Ukraine. ORCID: https://orcid.org/0000-0002-0717-1430.  
Recibido: 22/09/2022  
Aceptado: 15/11/2022  
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Olexander Svitlychnyy et al/// State Policy for the Development of Innovative Entrepreneurship  278-294  
DOI: http://dx.doi.org/10.46925//rdluz.39.15  
Política estatal para el desarrollo del espíritu empresarial innovador:  
experiencia de Ucrania  
RESUMEN  
El propósito del artículo es analizar las perspectivas para el desarrollo innovador del espíritu  
empresarial y generalizar las direcciones principales de la política estatal de innovación de  
Ucrania. Los métodos de investigación son: análisis monográfico, análisis de sistema, análisis  
jurídico comparado, generalización, previsión, etc. Se fundamenta la necesidad de desarrollar e  
implementar medidas efectivas dirigidas al desarrollo del emprendimiento innovador y  
aumentar el potencial innovador del país debido a la mejora de los instrumentos legales de la  
política estatal con respecto al desarrollo del emprendimiento innovador. Se enfatizó que,  
gracias a la mejora de la legislación actual, en particular mediante la implementación de las  
normas de la ley europea en el sistema legal nacional, existe la posibilidad de desarrollar el  
potencial del espíritu empresarial innovador en Ucrania y fortalecer la comercialización de las  
innovaciones. Se ha demostrado que la implementación efectiva de los logros del progreso  
científico y tecnológico solo es posible bajo la condición de establecer una cooperación entre  
instituciones y empresas científicas y educativas; gracias a medidas financieras, organizativas y  
regulatorias bien elegidas para apoyar el desarrollo y la comercialización de innovaciones. Se  
concluyó que la formación de la política de innovación moderna de Ucrania debe basarse en la  
modernización de las empresas, la atracción activa de inversiones a través de la participación en  
proyectos nacionales e internacionales, la integración de las tecnologías de la información en la  
esfera de producción y soluciones de gestión eficaces dirigidas a la participación de nuestro  
estado en los procesos globales de innovación.  
PALABRAS CLAVE: política estatal de innovación, innovaciones, progreso científico y  
tecnológico, emprendimiento innovador, programas de apoyo a la innovación.  
Introduction  
Considering the active European integration processes that are taking place in Ukraine  
despite the war, the innovative development model of our country is attracting more and more  
attention of scientists, politicians and entrepreneurs. Innovative processes play an extremely  
important role in the modern economy. Therefore, defining and taking into account their  
features is an indispensable condition for ensuring the effectiveness of the state's economic  
strategy and the development of the country’s economic potential in general. Creation of  
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Olexander Svitlychnyy et al/// State Policy for the Development of Innovative Entrepreneurship  278-294  
DOI: http://dx.doi.org/10.46925//rdluz.39.15  
appropriate incentives for the spread and improvement of the innovative model of economic  
activity of domestic enterprises becomes one of the major tasks of the innovative and economic  
policy of the state.  
Those changes that are taking place in economic and social development of the country  
have led to a new model of economic development, which is characterized by fundamentally  
new features and priorities. Industries based on high technologies, as well as industries and  
specific enterprises which are able to adapt quickly to the requirements of the external  
environment, play a particularly important role in the society these days. Due to the rapid pace  
of changes in the modernization of our live, the requirements for the quality of goods, services,  
and their wide range are growing proportionally. The state and the society become more open  
to innovations as a means of achieving economic development of the country and regions, as well  
as the decent living standards.  
Implementation of innovations can raise the economy to a new level and contribute to  
the rapid development of industrial production, as evidenced by the positive experience of  
innovations incorporation into business in developed countries. Moreover, the achievements of  
economic development by means of commercialization of such products of intellectual work as  
technologies, scientific and technical developments and knowledge are currently recognized as  
a model of innovative development of the economy of the European Union. European integration  
processes encourage Ukraine to converge the national economies with economic systems of the  
EU countries and introduce the European model of innovative development. Therefore, the  
study of features of the EU innovation policy, as well as participation in projects aimed at  
stimulating innovations, are extremely important for our country. The outlined questions will  
become especially relevant in the reconstruction period of the post-war economy and  
modernization of all spheres of life of society and the state.  
However, today the technological structure of industry in Ukraine does not fully meet  
the demands of the time, which weakens the competitiveness of national producers. For this  
reason, it is extremely important to maximize the effective use of innovative potential of the  
country, internal and external resources and to transfer to an innovative model of the  
development of the national economy as an imperative of the state innovation policy. For this  
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DOI: http://dx.doi.org/10.46925//rdluz.39.15  
purpose, the legal regulation of relations in the field of innovation should be improved, based on  
a stable legislative base for the development of innovative entrepreneurship and overcoming the  
existing gap between science and economic practice.  
1
. Literature review  
It should be noted that there are quite a lot of scientific works devoted to the research of  
state innovation policy and innovative entrepreneurship. But most of them were written before  
strengthening of integration processes between Ukraine and EU and do not fully reflect the  
main directions of harmonization of our national legislation in the sphere of innovations with  
the norms of EU law. In addition, they concern mainly a separate branch of the economy and do  
not consider from a holistic prospective the possibilities of introducing innovations to various  
spheres of activities in all regions of the country with regard to the peculiarities and state of  
economic development of this or that region. Therefore, the legal toolkit of the state innovation  
policy is improved not only due to the development of economic processes and transformations  
in the economy in general, but also due to the active integration of our country into the European  
community. This state of affairs indicates the urgency and necessity of conducting research on  
the chosen issue.  
A general overview of the theoretical foundations of state innovation policy is provided  
in the scientific article by Svyatohor (2016). The study of state policy instruments for the  
development of the high-tech entrepreneurship sector was carried out in the scientific work of  
Lyholat et al. (2019). The analysis of foreign experience in ensuring innovative development of  
the economy is carried out in the scientific article of Hotra (2015). The development of  
innovative entrepreneurship in Ukraine and its impact on positions in the global economy are  
studied in the article by Kryvovyazyuk (2021). Directions for increasing the effectiveness of state  
policy in the sprere of innovative development of entrepreneurship in Ukraine were investigated  
in the scientific work of Hotra and Varshava (2018).  
Taking into account the results of research conducted by the above mentioned and other  
scientists, we consider it expedient to direct our scientific research to clarifying the essence of  
the concept of "innovative entrepreneurship" and the influence of legal means of the state's  
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DOI: http://dx.doi.org/10.46925//rdluz.39.15  
innovation policy on stimulating its development. Therefore, the purpose of the article is to  
analyze perspectives for the innovative development of entrepreneurship and to generalize the  
main directions of the state innovation policy of Ukraine based on the optimal use of the  
potential of the country, region and an enterprise, as well as to study effective measures of the  
state innovation policy in the context of implementing the achievements of scientific and  
technological progress.  
2
. Methods  
Dialectical and special scientific methods of scientific research have been used in the  
article. Thus, the method of monographic analysis helped clarify a range of problematic issues  
related to the improvement of the state innovation policy, which were researched and published  
by scientists in scientific publications. The method of analysis and synthesis made it possible to  
summarize information concerning understanding of the concept of "innovative  
entrepreneurship" and to form the author's vision of its essence, at the same time researching  
those legal instruments of innovation policy that are able to promote innovation. Thanks to the  
method of theoretical generalization, the elements of the state innovation policy mechanism,  
which are actively used to increase the innovation potential of enterprises and the country as a  
whole, were critically examined. The comparative-legal method allowed to carry out a  
comparative-legal analysis of innovation policy tools, practically used in countries with the most  
successful economies to stimulate innovative activity in the country and its regions. The system  
method made it possible to conduct a study of the state innovation policy as a dynamic system  
consisting of separate subsystems and elements. The forecasting method made it possible to  
investigate trends in the development of innovation potential with the aim to increase the level  
of involvement of innovations in entrepreneurship and improve the economic indicators of the  
country. The method of generalization made it possible to make conclusions based on the  
conducted research.  
3. Results and Discussion  
3.1. Innovation policy of the state as a tool for introducing achievements of  
scientific and technical progress into entrepreneurship  
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DOI: http://dx.doi.org/10.46925//rdluz.39.15  
The idea that innovation plays an extremely important role in economic efficiency and in  
solving emerging challenges (such as the challenge of climate change) has gained a lot of traction  
in recent years. As a result, the idea that politics can play a role in supporting innovation was  
formed, which in turn contributed to the spread of the term innovation policy as a common term  
(
Edler & Fagerberg, 2017).  
Today the innovation policy of the state is implemented in complex and dynamic  
environment, including such areas as science, education and innovation, the clear coordination  
of which contributes to economic growth. It is the transformation of new ideas and knowledge  
into an object of economic relations that helps the embodiment of innovative developments and  
their practical implementation in production processes. Such complex economic processes  
require not only significant economic costs, but also appropriate political and legal support from  
the state. Thus the formation of demand for innovations and the creation of favorable conditions  
for the implementation of innovative activities is almost the most important task of the  
innovation policy of any country (Bazhal, 2016).  
In addition, the market economy assumes that enterprises play a key role in establishing  
stable production of goods and services needed by the society. Therefore, an important task of  
the state is to ensure the most effective functioning of the national innovation system at all levels  
of production and in various spheres of entrepreneurship. That is why the state helps to create  
favorable conditions for innovation by responsible management of the economy, effective  
regulatory policy and promotion of the free move of investments, people and ideas within the  
country, regions and enterprises.  
Most scientists lean towards understanding state innovation policy as a set of  
interconnected and mutually conditioned forms, mechanisms, tools, and technologies of the  
state's influence on the processes of formation, development, and implementation of the  
country's scientific, technological and innovative potential, based on prospective world trends  
in scientific and technological development (Svyatohor, 2016). In fact, the state innovation  
policy is a legal means aimed at the development and stimulation of innovative activity, that is  
the creation of new or improved products or technological processes that are implemented in  
the economic turnover using scientific research and development.  
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DOI: http://dx.doi.org/10.46925//rdluz.39.15  
The choice and formation of instruments of state policy for ensuring the innovative  
development of the business sector depends on the stage of economic development of the  
country and provides the use of additional approaches to multidimensional aspects of innovative  
and technological activities to solve specific problems.  
In general, the instruments of state innovation development policy include: regulatory  
tools (domestic and international law on intellectual property, economic competition, labor,  
etc.), financial and economic tools (cash transfers, subsidies, loans, credits, state contracts,  
taxes, customs duties, etc.) and so-called "soft tools" (market conditions, national and  
international technical standards, cooperation agreements, means of communication with the  
public, etc.) (Lyholat et al., 2019). It is important to note that the necessary volume and choice  
of methods of formation of state policy instruments should be related to specific types of  
innovative activity and be adapted to domestic conditions of use and, if necessary, be adjusted  
according to changes in the global or national environment.  
The innovative type of development, which achievement involves the implementation of  
the state innovation policy, is characterized by shifting the emphasis to use of fundamentally  
new progressive technologies, the transition to the production of high-tech products and  
progressive organizational and management solutions in entrepreneurial activities (Fagerberg,  
2016). Therefore, innovative activity involves first of all the creation and implementation of  
innovations, conducting scientific research, creating and improving technological processes  
used in the company's activities. Innovative activity is also characterized by new solutions in  
the field of production organization and the social sphere as well as the search for sources of  
financing the innovation process.  
Active use of both effective mechanisms of financial support and constant improvement  
of the regulatory sphere of these legal relations are important for the introduction of innovations  
in the activities of enterprises. Thus, financial support mechanisms such as direct funding, tax  
incentives, subsidies and loans are the main tools used to stimulate industrial research and  
development. In addition, along with the mechanism of financial support, the quality of the  
legislation regulating the development of innovations and their introduction into the production  
process have great importance.  
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DOI: http://dx.doi.org/10.46925//rdluz.39.15  
The modern regulatory and legal framework regarding innovative activity includes the  
norms of the Constitution of Ukraine, the Economic Code of Ukraine, the Law of Ukraine "On  
Innovative Activity", the Law of Ukraine "On Priority Areas of Development of Innovative  
Activities in Ukraine", the Law of Ukraine "On Investment Activity", the Law of Ukraine "On  
scientific and technological activities", the Law of Ukraine "On the special regime of innovative  
activity of technological parks" and other normative legal acts, which determine the legal,  
economic and organizational principles of state regulation of innovative activity in Ukraine,  
establish forms of state stimulation of innovative processes and are aimed at supporting the  
development of Ukraine's economy in an innovative way.  
In general, the legal framework acts as a regulatory instrument of the state policy of  
innovation development, which provides for the use legal means to regulate social and market  
interactions between subjects of economic activity in the innovation-technological process  
(
Lyholat et al., 2019).  
The Law of Ukraine "On Innovative Activity" defines innovations as "newly created  
applied) and (or) improved competitive technologies, products or services, as well as  
(
organizational and technical solutions of a production, administrative, commercial or other  
nature that significantly improve the structure and quality of production and (or) social sphere"  
(
On innovative activity: Law of Ukraine, 2002).  
Innovative activity is conceived in the norms of the law as a process aimed at  
implementing the results of completed scientific research and development or other scientific  
and technical achievements into a new or improved product sold on the market, into a new or  
improved technological process used in practical activities, as well as into related additional  
scientific research and development. Thus, a product that is the implementation of an  
intellectual property object for which the manufacturer has state protection documents  
(
patents, certificates) or licenses obtained from the owners of the intellectual property objects,  
or the introduction (implementation) of discoveries, will be recognized as innovative. It  
increases the domestic scientific, technical and technological level, it is produced in Ukraine for  
the first time or, if not for the first time, it is compared to another similar product presented on  
the market as competitive and has significantly higher technical and economic indicators.  
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Innovations allow enterprises to reach a completely new level of production and  
contribute to obtaining benefits expressed in the form of tangible or intangible assets. Therefore,  
the innovative development of the enterprise should be understood as a process of structural  
improvement of production and other processes of business activity due to the practical use of  
new knowledge in order to increase production volumes, improve product quality, and  
strengthen competitiveness.  
3.2. General characteristics of national and European innovation support  
programs in Ukraine  
Given that innovations help optimize industrial production on a global scale and create  
conditions for economic growth, they are increasingly becoming an important topic in  
international relations (Leijten, 2019). Effective state economic policy should promote the  
development of innovations and improve the conditions for globalization processes by  
concluding bilateral and multilateral agreements, as well as by means of a high-quality national  
strategy for the development of innovations with the aim of introducing them into production  
and management processes.  
In adopted in July 2019 Strategy for the development of the sphere of innovative activity  
for the period until 2030 states, that "The current state of innovative activity is a consequence of  
the lack of a strategic vision and consistent state policy regarding the transfer of Ukraine to an  
innovative path of development, the formation of a national innovation ecosystem (sets of  
institutions, relations, as well as various types of resources involved in the process of creating  
and applying scientific knowledge and technologies that ensure the development of innovative  
activity), which would ensure its implementation and increase the development of innovative  
culture in the state, using not only financial, but also other mechanisms for the development of  
innovative activity. Despite the presence of individual elements, there is no complete national  
innovation system, the purpose of which is to create innovative products (processes) and their  
quick introduction to the market (implementation). The existing structural elements of the  
national innovation ecosystem in Ukraine and the legal framework of their operation are not  
built into a single structure, therefore the results of the activities of these elements are isolated  
and do not have a synergistic effect, which should mean increasing of the efficiency of national  
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DOI: http://dx.doi.org/10.46925//rdluz.39.15  
production of goods (services) and strengthening of their competitiveness achieved through the  
large-scale implementation of the results of scientific research and scientific-technical  
(
experimental) developments" (Strategy for the development of innovative activity field for the  
period until 2030, 2019).  
The purpose of this Strategy is primarily to build a national innovation ecosystem to  
ensure the rapid and high-quality transformation of creative ideas into innovative products and  
services, to increase the level of innovativeness of the national economy, which involves the  
creation of favorable conditions for the development of the innovative sphere, increased number  
of implemented layouts, increased economic benefits from them, investments attracting into  
innovative activities.  
Science policy, along with technology and innovation policy should focus on creating  
connections, clusters and networks, as well as stimulating learning between system elements  
and promoting entrepreneurship (Schot & Steinmueller, 2018). Emphasis on the  
commercialization of scientific developments is seen in the activities of the Ministry of  
Education and Culture of Ukraine, in the activities of the National Academy of Sciences of  
Ukraine and specialized academies that have state support. In addition to financing scientific  
research, these structures aimed at the development of innovative activities, conduct joint  
activities with sector ministries, state authorities at the regional level and with local self-  
government bodies, as well as with various business structures.  
An important direction in the development of innovative activities of universities and  
scientific institutions is the development of their innovative infrastructure in the form of  
departments of intellectual property and technology transfer. But the activities of such  
departments are usually reduced to the preparation of catalogs of developments, presentation of  
materials at exhibitions and posting of information on the Internet.  
The activity of universities has been intensified in the last 2 or 3 years regarding the  
development of innovative activities of students through participation in startup competitions  
and the launch of entrepreneurship courses. An example is the pilot project "Entrepreneurial  
University" launched at the initiative of the start-up incubator YEP and the support of the  
Ministry of Education and Science of Ukraine, by which the course "Innovative  
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DOI: http://dx.doi.org/10.46925//rdluz.39.15  
entrepreneurship and management of startup projects" has been studied in higher educational  
institutions (A course on innovative entrepreneurship will appear in universities, 2021).  
The Ministry of Digital Transformation plays a special role in the field of formation and  
implementation of state policy regarding digitalization and innovative development. The  
expansion of the dialogue between Ukraine and the EU in the field of digital technologies and  
the preparation of the Roadmap for integration into the EU's Single Digital Market contributed  
to the growing attention of the Ministry to innovative activities. The Ministry takes an active  
part in the activities of the Ukrainian startup fund and initiated the creation of Action-Business  
centers (hubs) in universities, where students can undergo training, acquire entrepreneurial  
skills and abilities, and test their innovative solutions.  
In addition, the Ministry of Digital Transformation formed an expert committee on the  
development of the field of artificial intelligence (AI) in Ukraine. The committee included  
representatives of business, science and education, Ukrainian and foreign IT companies, as well  
as individual sectors with potential use of AI. An important result of the work of the expert  
committee was the preparation of the concept of the development of artificial intelligence in  
Ukraine by 2030. In view of this Concept, AI holds a special place in the system of legal  
regulation, since the capabilities of AI can positively affect a number of spheres of life of the state  
and society (Martsenko, 2021).  
Equally important are the tasks in the field of innovation, which are entrusted to the  
Ministry of Development of Communities and Territories of Ukraine in order to increase the  
competitiveness of the regions. The State strategy of regional development for 2021-2027 aims  
to stimulate economic development of regions through investments in regional development  
projects aimed at the development of regions, creating conditions for attracting investments and  
additional jobs (State strategy of regional development for 2021-2027).  
We should note that in EU countries it is customary to distinguish three main types of  
state programs for innovative development (state programs, technological or scientific research  
programs; programs aimed at commercialization of results; national cluster programs), which  
contribute to the commercialization of the results of innovative activities and are aimed at  
supporting the creation of new small innovative enterprises at research institutions, as well as  
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DOI: http://dx.doi.org/10.46925//rdluz.39.15  
the creation of new businesses or other means for commercial application of the results of  
scientific research activities (Hotra, 2015). In addition, there are EU Framework Programs  
supporting scientific research and innovation. These programs were launched in 1984 and today  
there are nine of them (The Ninth Framework Program (2021-2027) "Horizon Europe" -  92  
billion).  
Among the tools, supporting innovation, the provisions of the "Innovative Europe" line of  
the Horizon Europe program are important; within its framework the expansion of support for  
competitions and tools of the European Innovation Council, the development of the European  
innovation ecosystem and ensuring the activities of the European Institute of Innovation and  
Technology (EIT) are envisaged. It is important that the EU tries to provide financial and  
management resources for all stages of the innovation chain, from the idea to the market, using  
so-called “technology readiness levels” to identify each stage.  
Overall, the question that developed and developing countries are trying to answer is how  
to promote innovation in the best way to improve competitiveness, productivity, employment,  
growth and sustainable development. This question is complex and ambiguous. It is obvious  
that the state should concentrate funds to invest in knowledge generation and ensure free and  
competitive market conditions, which in turn will result in a more innovative economy (Karlson  
et al., 2020). It turns out that Ukraine has all the prerequisites for close cooperation between  
associations of scientists and entrepreneurs, which will make it possible to bring innovation  
policy to a new institutional level as part of the national policy of economic and social  
development and to promote the development of entrepreneurship in particular.  
3.3. Increasing the effectiveness of state policy in the field of innovation in  
Ukraine  
Sustainable prospects for economic development and growth become possible in the case  
of effective economic and innovation policy of the state with a mandatory provision of expenses  
for financing innovations (Ðuriˇcin et al., 2020). The consensus that the innovation process is  
closely related to science, technology and public policy on the development of innovations (and  
the financing of innovations) is progress. It is obvious that public institutions are of great  
importance in innovation processes, so it is important that all levels of public administration  
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have a clear idea of the opportunities and needs for effective innovation management. The  
effectiveness of innovative activities will directly depend on the effective interaction between  
state institutions and the entrepreneurship sphere.  
We believe that special attention should be paid to the needs of society to develop and  
implement innovative solutions in infrastructure, education and regional activities. The joint  
efforts of the society should be united for the comprehensive implementation of innovations,  
scientific and technical research. Therefore, it is important to outline the priority directions of  
innovative development in the field of dynamic innovative innovations, including: digital  
economy and society, energy, innovative workplace, healthy lifestyle, intellectual mobility,  
improvement of communication opportunities at the regional, national and international levels  
between science and industry, increasing the pace of innovation in industry, supporting small  
and medium-sized businesses, supporting startups, etc.  
The innovation-oriented economy is a new type of economic system that involves the  
development and implementation of a more flexible management style and the definition of a  
new role for the state in view of the high capital investments required to introduce innovations  
into the enterprise's activities, the long period between the development of a new technology  
and its commercial result on market and significant risk. In addition, it is necessary to pay  
special attention to the regional level of decision-making, since at this level the interaction  
between administrative structures of power, private business and scientists is formed, which is  
fundamental for the effectiveness of innovative activities. Special attention should be paid to  
small enterprises, which are considered to be potentially more innovative and competitive due  
to the absence of bureaucracy.  
Regional innovation support mechanisms should become an integral part of the state's  
innovation policy. Providing innovation support to innovators should be an important  
component of innovation policy that seeks to meet the needs of firms at different levels of the  
innovation process. Such innovative support should come from the local government, which is  
more aware of the potential of local enterprises and can better assess the risks associated with  
local and regional innovations.  
In view of the positive experience of foreign countries, the innovation process should be  
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stimulated with the help of the so-called cluster policy: a kind of union of universities and  
enterprises (Shapira & Youtie, 2010). The creation of joint research complexes is an important  
technology transfer tool, involving research institutes, companies and government agencies. One  
of the approaches to creation of joint research complexes is the high concentration of talents  
from the fields of science and commerce close to each other. Therefore, it is obvious that there is  
an urgent need in transformation of Ukrainian institutions of higher education for introduction  
of an innovative model of private-public partnership, as it is educational institutions that  
embody the first stage of the innovation cycle.  
The innovative policy of the state should have definite strategy and be inextricably linked  
with the market situation, based on a systematic and purposeful approach to its formation  
(
Kryvovyazyuk, 2021). The state must ensure the inseparability of innovation policy and modern  
achievements of scientific and technical progress, stimulate more priority areas of scientific  
research, provide the creation of new technical systems and technologies.  
Nowadays there are problems in Ukraine that hold back the development of innovative  
activity of domestic enterprises. We are talking about the lack of systematic work performed by  
the state while realizing the innovative potential of the national economy; lack of a consistent  
and balanced external and internal economic policy in the implementation of state management  
of innovative activities; lack of a system of priorities for the development of scientific and  
technological sphere; insufficient financial resources to provide scientific research and the  
implementation of innovative developments, etc. (Hotra