The global economy has rebounded from the lows of 2020, but its recovery will depend on innovations. Therefore, it is important to identify the most effective tax support instruments for the innovation activities of small and medium-sized enterprises (SMEs) that are used in the framework of anti-crisis economic policies in the OECD countries. It is suggested that tax incentives are the most effective tax instrument of all; the effectiveness of the profit tax benefit depends on the SME’s profitability; as to the social insurance and pension contribution, there is an allowable minimum of the rate, determined by the level of wages, that will stimulate innovation. To assess the effectiveness of tax support tools, the study used the methods of linear multivariate regression and simulation in Simulink. The source of information for regression analysis was the data published by the World Bank and the Organization for Economic Cooperation and Development (OECD). It was concluded that the most effective measures of tax support are tax incentives, as well as deferred payment of social insurance and pension contributions. The 10% profit tax was shown to be optimal to stimulate innovation provided the company keeps the saved profit for development. For innovative SMEs, the minimum allowable contribution rate for social insurance and pension provision, which stimulates their innovative activities, is 12%. The results of modeling confirmed that the proposed threshold indicators for supporting SMEs’ innovation activity can be an effective tool for overcoming the consequences of the global crisis caused by the COVID-19 pandemic.

In the context of European integration, the importance of state policy in the field of innovation of enterprises, especially small and medium-sized businesses, is growing. Therefore, the state of the regulatory framework should promote the development of Ukraine’s innovation system, which will increase the amount of foreign investment and increase the welfare of the population. All this requires effective coordination between legislative institutions. The dynamic formation of the legal basis for the development of innovation activities of small and medium enterprises shows positive trends, but attempts to intensify innovation activities have not been implemented in full. The article generalizes the Ukrainian legislative and regulatory support to support the innovation activities of small and medium enterprises. The structure of the institutional basis for supporting the innovation activities of small and medium enterprises was drawn up. Problems of functioning of the national innovation system are revealed. In the process of research the following methods were used: analysis and synthesis, induction and deduction, comparison, graphical and tabular method, system method. The state of the innovation system of Ukraine in relation to the world level is determined on the basis of international indices. The directions of solving the revealed problems of innovative activity of small and average enterprises are proposed, which should be solved by means of state policy tools.

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Abstract. The article considers the topical issue of intensifying the innovative activity of small and medium enterprises. In the course of the research, the structure of innovative activity of the enterprise was allocated to the subsystems: «Innovative activity», «Production and economic activity» and «State support and financial support». Scientific economic and mathematical methods such as a priori ranking, linguistic analysis, and cognitive modeling are used to identify and graphically represent the cause-and-effect relationships of the system. The a priori ranking allowed identifying indicators that from the point of view of scientists should be used in the analysis of subsystems. As a result, the causal links between the performance subsystems of small and medium-sized enterprises are identified and the indicators that have the greatest impact are identified. According to the simulation results, in order to intensify the innovation activity of small and medium enterprises, it is necessary to focus on the efficiency of the existing infrastructure of small and medium enterprises support, study the supply and demand in the market of business development services which will ensure compliance of services in the field of services for business development with the actual needs of small and medium enterprises. On the basis of the analysis of the received ratios of consonance, negative and positive influence it is possible to choose an acceptable strategy, for will promote increase of activation of innovative processes of small and average enterprises. Keywords: innovation activity, production and economic activity, small and medium enterprises, SME support, business development. JEL Classification O30, O31, O38 Formulas: 0; fig.: 4; tabl.: 6; bibl.: 17.