Financial instruments and innovations in business environment: European countries and Ukraine


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One of the most crucial tasks for the national economies development both in European countries and Ukraine is stimulating and ensuring sustainable economic growth. For this purpose, all states develop an innovative sphere and use financial different instruments. The aim of the article is determining the impact of financial instruments and innovations on business environment development of the national economy of Ukraine in comparison with European countries in order to create successful and effective business environment in Ukraine for foreign investments. The paper examines the impact of foreign direct investments and domestic loans on the Global Innovation Index 2018 using two-factor analysis of variance. The null hypothesis of an interaction effect (factor A (foreign direct investments, net inflows) and factor B (domestic loans of financial sector) doesn`t exert an interaction effect on result Y (Global Innovation Index)) was rejected. Also the combination of foreign indicators, direct investments and domestic loans has a significant impact on the Global Innovation Index. Practical recommendations should provide a comprehensive approach to assessing the use of financial instruments in order to encourage the investments. Thus, overcoming the uneven distribution of innovations and investments should provide using the global financial resources.

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    • Figure 1. Dynamics of the Global Innovation Index and place of Ukraine in the world rating for 2013–2018 period
    • Figure 2. “Innovation capability” element estimation of Global Competitiveness Index of Ukraine in 2018
    • Figure 3. “Innovation capability” element estimation of Global Competitiveness Index of Ukraine in 2018, rank/140
    • Figure 4. Foreign direct investment, net inflows, % of GDP
    • Figure 5. Government expenditure on education, total (% of GDP)
    • Figure 6. Government expenditure on education (total), % of government expenditure
    • Table 1. Comparison of Global Innovation Index 2018 and financial instruments indicators in European countries
    • Table 2. General indicators of business environment of the national economies of the studied countries on average for 2014–2018
    • Table 3. Indicators of financial instruments usage effectiveness in the innovative business environment, on average in 2001–2018