INNOVATIVE DEVELOPMENT OF INDUSTRIAL ENTERPRISES IN THE REQIONS: PROBLEMS AND PROSPECTS

Abstract

Factor analysis of indicators of innovative development of industrial enterprises at the regional level was performed. To study the innovative activity of industrial enterprises in Ukraine, 10 regions with the number of such enterprises exceeding 50 were considered. Statistical data analysis showed a dependence of increase in scale of industrial production on innovative development. In the regions with lower share of innovative enterprises, on the contrary, industry complexes develop at slower rate. A direct relationship between the level of diversification of sources of financing the innovation R&D and innovative development was identified. Thus, the maximum level of innovation is achieved by using all possible means of financing, and the minimum one takes place through the use of the state and local budgets only. Similarly, the activity of the industrial enterprises in the regions is affected by allocation of funds for R&D. However, in the real world such a relationship is less close so far due to small number of enterprises investing in R&D. Furthermore, this direction of the innovation policy implementation is not typical for enterprises which are active in terms of innovations. Hence, to improve the efficiency of industrial development there is a need to: (i) further intensify innovations by increasing the funding of scientific activities in the interests of enterprises, (ii) pay more attention to broadening the sources of ensuring the innovation R&D and innovation implementation, (iii) create a favorable investment environment, (iv) strengthen the innovative component of regional industrial policy.