Incentives for the Transformation of Innovative Development in Conditions of Limited Activity

Abstract

The search for incentives for the transformation of innovative development in conditions of limited activity is an urgent issue in the conditions of martial law and post-war recovery. Through state support, grants, tax incentives, and the formation of innovation funds, the state actively participates in the process of economic transformation. Innovations are considered as a direct indicator of the impact on the company's profitability. Foreign sales markets remain a priority in export-import activities, especially in conditions of its limitations. Achieving profitability and competitiveness indicators affects the state of export-import activity. The purpose of the article is to outline the theoretical foundations and provide practical recommendations for finding incentives for the transformation of innovative development in conditions of limited activity - taking into account the experience of the EU, research by scientists, legislative norms in the field of economics; substantiating the expediency of their implementation during martial law and in post-war conditions under limited activity. During the analysis, systematization, and generalization of the scientific works of domestic and foreign scientists, the relevance of views on innovative processes, their significance in the development of the state's economy during the period of martial law, and the prospects for development in the postwar period were considered. Views on "tax incentives of the investment and innovation process" are systematized, which are constantly being improved in accordance with the requirements of the times. It was determined that in Ukraine, compared to the EU countries, the state is not an active participant in the innovation and investment process, the indicators of its participation in the costs of innovation and state investment in relation to GDP are significantly lower than in the EU. The current approaches of the EU to the funding of innovation costs, the development of various platforms, and the search for mechanisms for the activation of innovative activities, in particular through startups, are considered. Google's evaluation of the level of interest in startups showed that the English-speaking audience searches for this topic most often in the world. As for Ukrainian-speaking users, the search trends for startups and innovations coincide. The prospects for the further transformation of innovation and investment development are the introduction of mechanisms and forms of the digital economy.