Financing of innovative development: realities and prospects

The aim of the article. The purpose of the article is to analyze the theoretical and practical basis for financing national economy innovative development, and ways of financing innovation with international experience.The results of the analysis. It should be noted that Ukraine's transition to an innovative model of national economy development is the only way to improve the quality of economic growth. Some aspects of innovative development are shown in several regulatory documents. However, at 01.01.12 only 16,2% of innovative enterprises are active, and the proportion of innovative products in the total volume of industrial production is 3,8%. It should be noted that in the EU countries these indicators are at 40-60%. Ukrainian model of innovation financing involves the following sources: own (depreciation, mobilization of domestic assets, proceeds from the sale of certain types of assets, retained earnings, etc.), borrowings (long-term loans of financial institutions, leasing, forfeiting, franchising) and involved (budget state and local levels, domestic and foreign investment: grants, international programs, mutual contributions of foreign investors, funds of foreign research funds, emission of shares). In the process of financial flows and their structure forming should be considered the following approaches: aggressive (maximum satisfaction operational needs in all types of assets with minimum insurance stocks and financial reserves), conservative (full coverage or current operational needs in all types of assets in the presence of sufficient levels of insurance stocks and financial reserves), moderate (full coverage of current needs in all types of assets in the presence of medium or normal in insurance stocks and financial reserves). Also, special attention should be paid to factors that affect the magnitude, intensity, time of formation and direction of the cash flows. According to the principles of financial management we decided to divide them into two groups: external and internal. The experience of developed countries shows the existence of a lot of effective forms of innovation sphere support: state guarantees of loans, preferential loans for innovative entrepreneurship, tax incentives to encourage scientific research and development work, the tax write-off (reduction of taxable income), tax credits (reduce the amount of tax liability), bank lending, investing funds in the innovation infrastructure development, increased use of program-target method in budget allocation, reverse and irreversible financing of small innovative firms on a co