FINANCING OF INNOVATIVE ACTIVITIES OF INDUSTRIAL ENTERPRISES AS THE BASIS OF THEIR COMPETITIVENESS

Abstract

Innovation is a key factor in ensuring long-term competitiveness, economic sustainability and modernization of the industrial sector. In today's conditions of high dynamics of global scientific and technological progress, innovation activity is becoming a key tool for increasing the efficiency and competitiveness of industrial enterprises. Successful implementation of innovations allows not only to promptly respond to changes in the market situation, but also to form long-term competitive advantages. For Ukraine, which is at the stage of economic transformation and rebuilding industrial potential in the face of internal and external challenges, the activation of innovative activities of industrial enterprises is critically important. However, in practice, the innovative activity of industrial enterprises remains at an insufficient level due to a lack of investment, the inconsistency of the legislative and regulatory framework with modern challenges, a shortage of highly qualified personnel, as well as weak integration of science and production. In the context of globalization, technological progress and increasing requirements for production efficiency, Ukrainian enterprises are forced to look for new sources of development, in particular through the implementation of innovative solutions. However, the financial component remains one of the main barriers on this path. This problem becomes especially important in conditions of martial law, economic destabilization, and disruption of international supply chains. The limited own funds of enterprises, the low level of attracting foreign investment, as well as the instability of state support significantly complicate the implementation of innovative projects. At the same time, the formation of an effective innovation financing system can activate modernization processes, strengthen integration into global markets, promote the restoration of industrial potential and the transition to a knowledge economy. Research into financing innovative activities of industrial enterprises is extremely relevant for both the scientific community and practitioners, as it allows identifying problems, assessing the effectiveness of existing mechanisms, and suggesting ways to improve them, taking into account modern challenges.