FACTORS OF STATE REGULATION OF THE INNOVATIONS MARKET

Abstract

Although government regulation is designed to enhance positive regulatory influence on innovation, it can have both positive and negative effects. State reforms should be carried out in such a way that regulatory acts in all spheres of activity are able to respond appropriately to changes in existing economic, social and technical conditions. It was determined that since the regulatory process is interconnected: regulation directly affects the innovation process, and innovations as well as certain technical changes significantly affect the rationale and design of regulation, then to ensure the success of reforms, the connections between regulation and innovation should be taken into account. It is justified that the drivers of innovation can be: consumer demand, human desire to communicate, competition, cultural factors, skilled workforce, education, infrastructure, access to financing, business environment, regulation, technologi-cal achievements, new application of technologies, etc. It has been proven that in order for Ukraine to benefit the most from cutting-edge research conducted in its territory, it is necessary to focus on the formation of the right thinking, principles and approach to the development and implementation of solutions in all aspects of regulation. Failure to do so greatly increases the risk that the most valuable ideas will be commercialized elsewhere in the world where regula-tory approaches are more favorable. It is substantiated that the process of regulation from the point of view of impact on innovation is formed on three basic types: economic regulation, social regulation, administrative regulation. It was determined that the binary influence of regulation on innovation and the search for the optimal ratio between its posi-tive and negative effects deserve special attention. In the economic sphere, regulation can provide the necessary condi-tions for research and innovation by maintaining a certain level of openness or competition in product markets. In the social sphere, regulations may impose technical requirements on industries, which will focus research efforts on the creation of new technologies and products in accordance with the basic principles of environmental protection indus-try. Regulation in the administrative sphere creates a favorable economic environment with the same fair conditions for all participants of the innovation process. Reasonable criteria for improving regulatory influence on innovation are substsntiated.