INSTITUTIONAL EFFICIENCY AS AN IMPERATIVE OF THE POST-WAR INNOVATIVE DEVELOPMENT OF TERRITORIAL AND ECONOMIC SYSTEMS IN UKRAINE

Abstract

Topicality. Despite numerous measures to stimulate scientific, technical and innovative development, declared by programs, legislative and departmental normative documents of Ukraine, the actual effectiveness of their implementation remains low, and priority focus on the innovative path of development did not become an integral part of it. Formal institutions should provide better legal, economic, and political institutional conditions, such as establishing strict and fair laws to protect stakeholders, reducing investment restrictions and increasing freedom for business, finance, and capital controls, as well as addressing corruption, bureaucracy, and autocracy. Such a policy is a prerequisite for creating a better investment environment and increasing the efficiency of resource allocation for the innovative development of territorial and economic systems in the context of post-war recovery of Ukraine.Aim and tasks. The aim of the article is to examine the theoretical-methodological and legal basis of the entrepreneurial environment in the aspect of institutional support for the development of innovative activity within territorial&economic systems. The tusk of the study is to propose measures for its improvement in the post-war period in order to recover the Ukraine’s economy on innovative bases.Materials and Methods. The research is based on results of comparative, semantic analysis and theoretical generalization of the previous studies, contemporary scientific views and empirical observations regarding the impact of institutional efficiency on investment, economic growth rates and total factor productivity (TFP) from a macroeconomic perspective. The contextual analysis results were applied to was applied to identify contradictions in the existing organizational and legal basis of the existing institutional framework for the development of territorial communities and business entities in the aspect of their innovative activity of territorial&economic systems and the overall economy of Ukraine in the post-war recovery context.Research results. The conducted research have led to a set of results, including: (1) improvement of categorical apparatus of the theory of regional management by defining the category of the "territorial&economic system", (2) determination of the main formal institutions and institutions that regulate the development of innovative activities in an entrepreneurial sector of the country and the development of territorial communities, (3) the contextual analysis of the existing institutional support conducted within the study allows for drawing conclusions that , overall, the country has developed a complex institutional environment, which is shaped by the existence of various institutions and regulations governing innovative activities.Conclusion. The Institutional support for innovative development in Ukraine has significant deficiencies, manifested in contradictions, insufficient identification of subjects and objects of the innovation process, and inadequate resource allocation. The problem significantly inhibits the innovative development of territorial economic systems, and at some point makes it impossible. Strategies and management of the national innovation system remain fragmented, relatively ineffective and insufficiently coordinated. There is no clear division of roles and responsibilities, including financial ones, among different government bodies. More than half of the adopted innovative programs did not receive funding due to the lack of corresponding allocations in the state budget. Priority is given to the Annual Budget Law compared to the previous financial commitments defined in program documents.