State support for innovative development of agriculture in Ukraine: selected legal aspects

Abstract

Problem setting. Ukraine possesses significant potential for the development of an innovative economy, especially in sectors where it has competitive advantages, such as information technology, agriculture, and energy, while ensuring free access to markets, along with other necessary measures, can contribute to the active development of the innovative sector and increase the country’s competitiveness in the global market environment. Thus, provided that effective state support instruments and effective legal mechanisms are introduced to stimulate innovative activity, the agricultural sector can become one of the key catalysts for the development of the national economy and increasing Ukraine’s competitiveness in world markets, taking into account the fulfillment of the state’s international legal obligations regarding European integration. Innovative technologies in agriculture play an important role in its development, as they contribute to saving resources, rationalizing production processes, improving consumables and finished products, and agro-innovations are aimed at improving technologies and goods with a simultaneous sparing attitude to the environment. Therefore, the successful functioning of agricultural enterprises in modern economic conditions should be supported by intensifying their innovative activity through the improvement of state regulation and support for innovation-driven development. It is the state that must establish a progressive and effective mechanism for managing agro-industrial production based on innovations, while financial support should ensure the economic sustainability of agricultural enterprises in order to create conditions for increasing the competitiveness of products and guaranteeing food security in the country. Accordingly, the implementation of state support for the innovative development of agriculture in Ukraine currently requires the improvement of institutional and legal frameworks, as well as comprehensive scientific research aimed at developing effective mechanisms for stimulating innovation in the agricultural sector. Analysis of recent researches and publications. The problems of state support for the development of agriculture are the subject of scientific works by many researchers. Kh. Hryhorieva conducted a comprehensive monographic study of the legislative support of state support for agriculture in wartime and post-war recovery. The scientific work of T. V. Kurman is devoted to the consideration of problematic issues of legal support for agrarian relations in the field of financial support for agribusiness in martial law and the development of proposals for improving the mechanism of legal regulation in this area. In particular, the author notes that regulatory regulation in this area should not remain fragmentary, disjointed and scientifically unfounded, since financial support is one of the most important means of supporting agribusiness entities in martial law and will retain its importance in the post-war period, the specified mechanism should be systemic, built on the principles of a synergistic approach, include an effective system of monitoring violations and abuses in the specified area, and also aimed at solving specific tasks that meet the modern interests and expectations of citizens, territorial communities and the Ukrainian state not only in martial law, but also during the period of post-war reconstruction of Ukraine, and will also contribute to the further improvement of national legislation, European integration processes, the development of science and progress, which is impossible without guaranteeing the food security of the state, ensuring the proper functioning of agribusiness and sustainable development of the agricultural sector. Y. Y. Bakai and Y. A. Honcharenko considered the theoretical and legal principles of state support for agribusiness entities during martial law and concluded that state support for agribusiness entities during martial law is of great importance, since the food security of not only Ukraine but also the world as a whole depends on the activities and productivity of the agro-industrial complex. Such urgently needed measures as reducing the tax burden, preferential lending, increasing the acreage, providing state guarantees, reserving conscripts, permitting the operation of agricultural machinery without registration, etc. are aimed primarily at maintaining the vital activity of the agrarian sector of the economy in these difficult times. The scientific work of O. V. Zakharchuk and Ye.Yu. Ionitsoi, which emphasize that increasing the efficiency of agricultural enterprises is practically impossible without attracting innovations and investments, increasing the equipment of agriculture with basic production means to an economically justified level, improving their species composition and structure will allow updating and modernizing the material and technical base of agricultural enterprises, taking into account the achievements of scientific and technological progress. Given the current issues of innovative development of the agricultural sector and state support for agriculture in modern conditions, there is a need for thorough scientific research and a comprehensive legal analysis of this area. Article’s main body. Innovation is one of the most effective factors in the development of agribusiness as a component of the agricultural sector of the economy of Ukraine, the introduction of innovations in agricultural production and agribusiness management ensures the advancement of the agrarian sector to a qualitatively new level, in addition, the process of globalization and dynamic development of the world economy requires the implementation of effective mechanisms of innovation policy, which is the key to the competitiveness of the country’s agrarian sector. Thus, the innovative activity of agricultural enterprises is critically important for ensuring Ukraine’s competitiveness and food security, it contributes to increasing the added value of products, efficient use of resources and the formation of new market opportunities, however, the actual implementation of relevant program and regulatory documents is limited due to the lack of target programs and weak coordination between government bodies, scientific institutions and enterprises. In this context, it should be noted that prior to the full-scale war, Ukraine’s agricultural sector was characterized by stable positive development dynamics and played a system-forming role in the national economy, the high growth rates of agricultural production were manifested in an increase in gross output, improved labor productivity, the active implementation of modern agricultural technologies, the expansion of export potential and increased investment attractiveness of agricultural enterprises. The Law of Ukraine “On the Principles of State Agrarian Policy and State Policy of Rural Development” defines agricultural support as state aid provided in accordance with the law. Its principles include transparency and openness, predictability and consistency, fairness and efficiency, targeted orientation, verification of eligibility for support and its monitoring, as well as the integrity of recipients. At the same time, it should be emphasized that the specified regulatory legal act, which defines the foundations of state policy on stimulating the production of agricultural products and ensuring food security, needs to be improved due to insufficient regulatory regulation of issues of state support for innovative development of the agricultural sector. Furthermore, it is important to emphasize that the sustainable development of agriculture directly depends on the implementation of coordinated systemic state support, an important condition for which is the creation of a favorable investment climate, the definition of strategic priority areas for innovative development of the agricultural sector, the allocation of resources to the development of production, as well as the improvement of approaches to assessing the effectiveness of budget programs, taking into account leading international experience. Conclusions and prospects for the development. Innovative development of agriculture is a key prerequisite for enhancing the efficiency and competitiveness of Ukraine’s agricultural sector, ensuring food security and creating new economic opportunities. At the same time, the effectiveness of state support for innovation remains limited primarily due to insufficient regulatory frameworks, as well as the insufficiency of relevant target programs. In this regard, the need to improve mechanisms of state support for innovation in the agricultural sector, aimed at stimulating the innovative development of agriculture, is becoming increasingly actualized. Under conditions of martial law, Ukraine’s agricultural sector continues to ensure the country’s food security and contribute to economic stability, despite the challenges posed by the war, which threaten food security and require changes in the vectors of development of the agricultural sector, in particular, this involves supporting all agricultural enterprises on the basis of fair competition in access to financial resources for agro-industrial production, enhancing the efficiency of agricultural activities, and applying innovative approaches to realize their potential. In this context, the application of a systemic and synergistic approach to the formation and implementation of state innovation policy in agricultural development is of particular importance, particularly through the improvement of legislative regulation governing the provision of state support for innovation activities. This will contribute to enhancing the technological level of agricultural production, strengthening the competitiveness of the national agricultural sector, ensuring food security, and promoting the sustainable development of rural areas.