IMPLEMENTATION OF THE MODEL OF INNOVATIVE DEVELOPMENT AND ENCOURAGEMENT OF IMPORT SUBSTITUTION – IMPERATIVES OF ECONOMIC SECURITY OF UKRAINE

Abstract

Enhancement of theoretical aspects and elaboration of practical recommendations for innovation development and encouragement of import substitution in Ukraine. Focusing on innovative and technological development of the XXI century civilization as well as considering the reorientation of scientific and technological progress on the creation of Nano-, bio-, information and cognitive technologies. The key positions of the implementation of the innovation development model in Ukraine are outlined: investment climate improvement and creating favorable conditions for so-called «long money» in the economy by investments of citizens’ pension savings, creation of the efficient banking services system for the investment process; ensuring the stability of the financial system by optimizing the state budget expenditures and implementing pension reform without increasing the tax burden; establishment and development of a new format of public-private partnership ensuring transparency of cooperation between state structures, business, trade unions and civil society; crea-tion of scientifically-saturated free economic zones with a high level of material and infrastructural provision of research activities with obligatory social protection of scientific employees, etc. Problematic aspects and prospective trends of import substi-tution in food, textile, chemical industries, metallurgy and machinery are systematized. It is noted that the state policy on encouragement of import substitution should be systematically structured, and the forms of state support should be: direct subsidizing from the budget, reduction of tax rates for enterprises that perform import substitution, the application of differentiated customs rates depending on the degree of readiness of the product, in particular lower rates should be introduced for the import of raw materials, higher – for the import of finished goods. It is substantiated that introduction of innovative mechanisms of development of the national economy and encouragement of import substitution are imperatives of economic security of Ukraine.