№ 3/2017

Fìnansi Ukr. 2017 (3): 111–121

FINANCES OF THE INSTITUTIONAL SECTORS

ZYMOVETS Vladyslav , KERIMOV Pavlo ¹

¹SI “Institute for Economics and Forecasting Ukrainian National Academy of Science”
OrcID ID : https://orcid.org/0000-0002-7793-7788

Financial mechanism of engineering development in Ukraine

Engineering firms in Ukraine need to be modernized in order to restore their competitiveness in both internal and external markets. To do this they need to obtain certain amount of financing either from market or budget via various state aid programs. Overall weakness of Ukrainian financial sector and market mechanisms, together with poor investment attractiveness and low creditworthiness, results in inability of most Ukrainian engineering firms to raise funds in the market. This makes state aid essential to ensure survival of a certain percent of engineering firms in Ukraine. The previous experience of state aid gives reason to doubt advisability of continuing such practice in the future. It is time to amend the foundation of state aid practices by: implementing restructuring state aid for Ukrainian firms; shifting from vertical towards horizontal state aid, namely R&D and employment funding programs, and ensuring equal access to such programs for all firms that meet qualifying criteria.

Keywords:economic development, corporate finance, investments, modernization of the economy, self-financing, bank loan.

JEL: G31, G38.

ZYMOVETS V. . Financial mechanism of engineering development in Ukraine / V. . ZYMOVETS, P. . KERIMOV // Фінанси України. - 2017. - № 3. - C. 111-121.

Article original in Ukrainian (pp. 111 - 121)

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