Ivanova V. Organizational and Economic Support for the Functioning of the National Innovation System

Innovation plays a central role in the economic development of the state and serves as a key determinant of national competitiveness. State influence and the direct involvement of public authorities in shaping innovation policy ensure high rates of economic growth. For the effective functioning of the innovation sphere, particular importance is attached to its organizational and economic support, which encompasses both the subjects vested with organizational and economic powers and the instruments of state regulation. An analysis of academic literature and the current regulatory framework of Ukraine reveals the fragmented and inconsistent nature of the regulation governing public authorities exercising organizational and economic powers. This inconsistency manifests itself in the parallel exercise of competences by central executive authorities in the innovation sphere without proper coordination, resulting in the duplication of functions. As a consequence, the distribution of competences becomes excessive and unfocused, which prevents the effective implementation of state innovation policy measures. Although competences are formally allocated according to a sectoral principle, this occurs in the absence of effective interagency coordination and clearly defined mechanisms for delineating responsibility.