CONCEPTUAL FOUNDATIONS OF FINANCIAL SUPPORT FOR INCREASING THE INNOVATIVE COMPONENT OF UKRAINE’S INTERNATIONAL COMPETITIVENESS

341 ISSN 2306-4994 (print); ISSN 2310-8770 (online) UDC 336.02:330.341.1:339.9(477) Bogatyrov O. Ph. D. in Economics, Kyiv National Economic University Named after V. Hetman, Ukraine; e-mail: bogatyrev_77@ukr.net; ORCID ID: 0000-0002-1411-6798 Baula . Ph. D. in Economics, Associate Professor of the Department of International Economic Relations, Lutsk National Technical University, Ukraine; e-mail: o.baula@lntu.edu.ua; ORCID ID: 0000-0003-2609-0211 Liutak . Doctor of Economics, Professor, Professor of the Department of International Economic Relations; Lutsk National Technical University, Ukraine; e-mail: olenalutak@gmail.com; ORCID ID: 0000-0002-4293-0586 Galaziuk N. Ph. D. in Economics, Associate Professor of the Department of International Economic Relations, Lutsk National Technical University, Ukraine; e-mail: o.baula@lntu.edu.ua; ORCID ID: 0000-0001-7918-4268

, .: 2; .: 2; .: 16. the direction of its improvement in the context of modern requirements, in particular, ensuring the country's economic security through increasing international competitiveness. The purpose of this article is substantiation of the conceptual foundations of financial support for increasing the innovative component of Ukraine's international competitiveness.
Research results. The current stage of development of World Economic processes develops under the influence of constantly transforming processes of globalization and internationalization, and the main sign of the level of economic development and competitiveness are, nevertheless, indicators of innovation -continuity of development, the level of development of innovations, the tendency to update, the level of scientific development, the ability to form and use effective information and intellectual potential, improving indicators of well-being and quality of life, etc.
The report of the National Academy of Sciences of Ukraine «Innovative Ukraine 2020» states that «the lack in Ukraine of interest in innovative development at the political level, the inhibition of support for innovation activities, and even direct opposition to it by the main ministries in conditions when the environment of Ukraine intensively develops the scientific and technical sphere (primarily EU member states), requires an analysis of the social and economic reasons for this situation. The main reason for non-compliance with legislation in the field of Science and innovation in Ukraine, the difficulties of its development and adoption are related to the fact that regulatory legal acts are adopted in the absence of an innovative directed economic strategy of Ukraine» [1, p. 239].
The main indicator of international comparison of the level of innovation in the national economy is the Global Innovation Index (GII). In Table 1 and Fig. 1 [2][3][4][5].
Data from Table 1 and Despite the presence of Ukraine's bottlenecks in the GII, the innovation efficiency coefficient showed quite good dynamics in 2018: in 2018, Ukraine was on the 5th place, which is 6 positions higher than in 2017, which was evidence of an increase in the efficiency of innovation activities in the country. However, in 2019, the situation worsened: Ukraine lost 5 positions relative to 2018 and is on the 10th place [2; 4; 6; 7].
Based on the results of GII 2019, we will highlight the strengths and weaknesses of Ukraine in the innovation sphere ( Table 2). Thus, Ukraine has a high educational and scientific potential, is able to produce various innovations in the form of ideas, scientific developments, patents, but the mechanism for implementing them in the sphere of economic activity is weak. In this regard, first, it is necessary to develop an effective mechanism for implementing the results of innovation activities and create an effective institutional environment that will ensure the development of talents and increase the level of human development. All this should ensure a further increase in the standard of living of the population [8].
The conducted research proves that the problem of improving the financial mechanism for ensuring innovation processes in the economic system of Ukraine requires a priority solution. Developments on increasing the innovative component of increasing Ukraine's international competitiveness are impossible without adequate financial support.
World experience shows that in developed countries -the world's leading innovation leaders, public policy provides for direct funding for scientific research and through tax measures encourages private sector R&D spending. In the developed countries of the OECD, the ratio of public and private sector expenditures on R&D is 1:3 and 1:4 [9, p. 45-46].
Improving financial mechanisms for ensuring innovation activities should begin with the creation by the state of a favourable climate for the implementation of innovation processes [10, p. 30]. The EU countries are characterized by a constant increase in investment in innovation processes using special software tools and an innovative localization system. Thus, the European Framework program Horizon 2020, launched in 2014, is aimed at expanding scientific research and activating innovation activities in the EU.
The budget of the Horizon 2020 program shows that about 38% of the total amount of funding is allocated for social projects, and the average annual amount of capital investment in innovative processes of regional investment funds is quite significant (11.2 billion euro), grant competitions are available to both specialized research teams, small research teams, and individual specialists [11, p. 18].
Foreign experience of state support for innovation shows that the preferential loan regime is available mainly to small and medium-sized technology companies; the terms of granting loans are characterized by an individual approach; different countries are characterized by different interest rates on soft loans: from 0% in Germany to 4.5% in Brazil; as a rule, there are special agencies or banks to service state programs to support innovation [11, p. 18-24]; the system of fiscal incentives is used at certain phases of the economic process (budget transfers or tax credit for commercialization of R&D results, exemption from income taxes, tax credit [12, p. 150]; improving the financial support of innovation processes cannot be achieved by using subsidies, and state support should be aimed at the development of the enterprise itself, which, having increased the efficiency of its activities, will independently ensure attracting investment to finance innovation activities; the development of innovation infrastructure should be among the strategic priorities of the innovation policy of highly developed states [13]; using the potential of cluster structures as an effective method of ensuring an appropriate level of financial support for innovation activities [14, p. 381].
In Fig. 2 a conceptual approach to improving the financial support of the innovative component of increasing the international competitiveness of the domestic economy is proposed [15, p. 81; 16, p. 162-163].

Fig. 2. Concept of financial support for increasing the innovative component of Ukraine's international competitiveness
The implementation of the proposed concept of financial support for increasing the innovative component of Ukraine's international competitiveness should take place at strategic (elimination of contradictions or their localization or weakening), tactical (elimination of threats themselves or prevention of their impact) and operational (elimination of the consequences of threats) levels. To ensure a sustainable level of international competitiveness of the country through increasing the innovation component, it is important to implement a system of measures to monitor threats even at the stage of their origin and prevent the spread of their negative impact. Therefore, the methods and tools of implementing the concept of financial support for increasing the innovation component of Ukraine's international competitiveness should have components of threat prevention and should The purpose of the concept is to realize the innovative potential of the country and ensure its economic security in the context of globalization and internationalization of social production Subjects: -national, regional and local authorities; -business entities; -institutions of higher education, scientific institutions, innovative institutions; -the public; -interested non-residents. Objects: 1. Economic potential 2. Environmental potential 3. Socio-demographic potential 4. Infrastructure potential 5. Tourism potential 6. Intellectual property objects 7. Natural Environment, Culture 8. Science and education, etc.
-Tasks of implementing the concept: -monitoring the state of innovation potential and financial support for its implementation (SWOT-analysis of innovation potential through the prism of the country/region's financial security strategy and ensuring an appropriate level of international competitiveness of the country); -monitoring and analysis of factors of innovative cooperation of the country's regions; -formation of an innovation management strategy taking into account the need to increase the level of international competitiveness of the country.

Components of the concept of financial support for increasing the innovative component of Ukraine's international competitiveness Principles :
Timeliness Maintaining an optimal level of use of innovation potential and economic security Development of an action plan for changes and improvement of the mechanism for using innovative potential and ensuring economic security include economic levers (tax incentives; transfers; direct budget investment; grants; concessional lending; cooperation with foreign institutions for financial support of innovation activities; increasing the share of GDP aimed at financing innovation processes; attracting household funds, international grants as investments for the implementation of the concept of innovative development of the country's economy, etc.), as well as organizational (development of innovative infrastructure; consulting assistance; personnel support; creation of clusters using the potential of education, business, government, public; creation of regional clusters with innovative and industry production; increasing the role of non-state institutions in ensuring financial support for innovation activities, etc.), institutional (techno parks, business incubators, analytical centres, etc.), regulatory (strategies, concepts, plans, programs) and social (conducting business trainings, implementing joint social projects, etc.).

Conclusions.
Increasing the innovation of the country's economy in the modern globalizing conditions of world economy development is of exceptional importance, because countries with a low level of investment in innovation have a relatively low level of economic development and, in fact, belong to the third world countries.
Thus, innovation activity helps the country to level out the negative aspects associated with the cyclical nature of economic development in the context of modern global transformations at any stage of development. Compared to national economies that do not pay attention to the development of innovations, innovatively developed countries show higher rates of economic growth in the longterm trend. This is especially clear in those countries that build their own national innovation system based on a combination of stimulating State Innovation Policy, science, education, business community and the country's participation in international innovation clusters in order to create and implement innovations as a priority of economic development. Of all these determinants, joint innovations are not only a tool for the country's economic growth through increased labour productivity, but also create opportunities for innovative novelty in the global aspect. Joint innovations make it possible to create a completely new product, the promotion of which in the global innovation market ensures the growth of competitiveness of the national economy on a global scale.