PROSPECTS OF IMPLEMENTATION OF THE MECHANISM OF FUNDING OF INNOVATION ACTIVITY AND INNOVATION AND INVESTMENT PROJECTS

Abstract

The article investigates the prospects of implementation of the mechanism of venture financing of innovation activity and innovation and investment projects. The theoretical foundations and the essence of forming the mechanism of venture financing in investment providing innovation activity is generalized.  It is revealed that the introduction in Ukraine of venture financing of innovation activity and innovative investment ensuring of industry modernization requires the formation and implementation of the mechanism of such financing, as this mechanism is an important economic tool and is effectively applied by Western countries for innovation and implementation of effective changes. The essence of this mechanism is to collect financial resources, selection of innovative projects for further financing, direction of the venture investment placement and control over the timeliness of the full return of invested investments. It is determined that the main focus of venture capital is to finance enterprises that carry out risky innovations as venture capital is a highly risky capital invested in young enterprises with high potential of rapid growth, developing or implementing innovations. It was investigated that the main goal of venture financing is getting high profit rate, and first of all it concerns high-tech companies with new products and active introduction of innovative processes. It was investigated that integral elements of the venture financing mechanism are the formation and use of levers for stimulating and regulating venture activities. It is reasonable that the implementation of the mechanism of venture financing in the country to modernize the industry and to finance innovative activities of innovative development of enterprises requires the establishment of a complex of instruments of state regulation of venture investment. It is determined that the indisputable advantages of venture financing will also be the possibility of attracting and accumulating financial funds of individual investors of individuals and legal entities, which is able to become the basis of innovative activity and at the same time activates these innovative processes by making population and enterprises of the country immediate participants of the innovation process interested in its positive results, which can result in the socio-economic growth of the country's economy and its economic technological innovation potential.