Anzhela Merzlyak

The effective implementation of innovations is broadly determined by the ways of their financing, among which project funding is particularly important today. This paper examines the impact of project funding on the innovative growth of the state in the EU countries and Ukraine in the context of sustainable development. Using theoretical and empirical methods, this study identifies and systematizes traditional and innovative forms of sustainable innovation project funding, which are practically used by the EU member states and Ukraine. Based on statistical methods, data analysis for the period from 2014 to 2020 and indicators characterizing the participation of countries in the largest European project funding program Horizon 2020 and other similar programs, the study revealed a close relationship between the conditions created by the state for participation in project funding programs and indicators of innovation activity and the climate of the state. The study allowed determining that funding from international sources, including funds from leading European institutions, which support the dissemination of sustainable innovations, can be a good alternative for innovation project funding under limited domestic resources. The study concluded that diversification of sources and forms of project funding, use and support from the state influences and accelerates the development of innovation infrastructure in a country (clusters, business incubators etc.), as well as the interaction between various participants in a sustainable innovation process (state, regions, large enterprises, small and medium-sized businesses, communities).