INNOVATION FINANCING MECHANISM: THE DANISH EXPERIENCE

Abstract

This study focuses on the innovation financing mechanism in the Kingdom of Denmark and the prospects for their application in Ukraine. The article is devoted to defining the mechanism of financing innovative activities, ensuring economic development of territories in the Kingdom of Denmark. The mechanism of allocation of funds for enterprises engaged in innovative activities is analyzed and defined. The sources of formation of funds in the stock and state support of innovation are investigated. The main forms of state support for innovation activities were analysed: funds, grants, research structures and support for cluster initiatives. Cluster interaction, which takes place at 3 levels: state, regional and municipal, helps to develop each region evenly; and promotes enhanced economic integration. The main sectors of the Danish economy, which are the most innovative and receive priority in financing, are given, and the prospects for the development of these sectors are outlined. The prospects for introducing innovation support policies in Denmark's new cluster policy are identified and the formation of 14 new cluster zones is shown. It is proved that a targeted legislative and administrative policy has allowed Denmark to become one of the most innovative states in the world. The article shows that public financial support for innovation at 40% is one of the keys to Denmark's success as an innovative country. It has been shown that the signing of the Horizon Europe programme between Ukraine and the EU will allow Ukrainian scientists to participate in grants aimed at supporting innovation activities, and will serve as a factor in the gradual development of innovation capacity. A replication of Denmark's innovation success in Ukraine is only possible with the creation of regional innovation development networks, and active government involvement in their development and coordination. The article shows that allocation of budget funds for the development of technology centres, as well as covering some costs will help improve the investment climate and attract investors. The practical relevance of the article is expressed through the possibility of application for the development of Ukraine's innovation potential and the promotion of regional development.