FINANCIAL POLICY OF STIMULATING INNOVATIVE DEVELOPMENT OF THE AGRICULTURAL SECTOR AND MECHANISM OF ITS IMPLEMENTATION: FOREIGN EXPERIENCE

Authors

  • T. Sus V. Stefanyk Precarpathian National University
  • О. Yemets V. Stefanyk Precarpathian National University
  • O. Tsiupa V. Stefanyk Precarpathian National University

DOI:

https://doi.org/10.18371/fcaptp.v4i35.222151

Keywords:

agrarian sector, innovations, financial mechanism, innovation development, financial security

Abstract

Financial policy of foreign countries in the agrarian sector and its influence on stimulating innovation activity has been reviewed in this article. Direct and indirect methods of stimulating innovational development in agrarian sphere have been described. Current trends in the financial support of the agrarian sector meet with some changes; indirect support, ensuring of the guaranteed minimum farm incomes, financing of technology transfer and ecologization of agricultural production is emphasized now. Indirect methods do not require budget expenditures and create preconditions for selecting the directions of implementation the strategic goals of the state in the agrarian sector, provide with favorable environment for the development of entrepreneurship in the innovation field. The most widespread tax levers of stimulation of innovative development of agrarian sphere have been systematized. Financial policy of EU which implements the strategy of innovative development of the agrarian sphere by creating demand for research and innovation and modeling of competitive environment where tax benefits are granted not to scientific organizations, but to companies and investors have been reviewed in the article. The features of the framework programs, which consist of a number of targeted programs and aimed at stimulating innovation activity through financing from the EU budget, have been considered. It has been noted that for the implementation of innovations, enterprises and farms can use financial support using national or European Union innovation support programs. First of all, financial instruments are aimed at providing innovative development of the agrarian sector and increasing its competitiveness, economic efficiency in giving priority to ecological production and development of rural areas. The EU’s current fiscal policy in the field of innovative agricultural sector development aims to stimulate investment in the form of borrowings, guarantees, venture capital and other risk management mechanisms in combination with technical support, reimbursement of a portion of the interest rate on loans and an insurance premium in the insurance of risks of introducing innovations. The peculiarity of the modern approach to the use of innovative financial instruments for the innovative development of the agricultural sector is that they are an alternative to financing in the form of grants and allow not only to attract more financial resources, but also to use these resources on a rotating basis, which allows to provide further stimulation of innovations development.

 Features of modern approach to application of innovative financial tools for development of agrarian sphere have been considered. The modern models of support and financing of innovative development of agrarian sphere in developed countries have been described. The approaches to financing innovative development of agrarian sector have been systematized and the sources of financing of innovation development in Ukraine have been proposed.

Author Biographies

T. Sus, V. Stefanyk Precarpathian National University

Ph. D. in Economics, Associate Professor of Department of Finance

О. Yemets, V. Stefanyk Precarpathian National University

Ph. D. in Economics, Associate Professor of Department of Theoretical and Applied Economics

O. Tsiupa, V. Stefanyk Precarpathian National University

Ph. D. in Economics, Associate Professor of Department of Finance

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Published

2020-12-24

Issue

Section

Economic-theoretical aspect of Financial Credit System's development