The work is devoted to the study of the international investment portfolio, its features such as risk, profitability and the level of international diversification, as well as global flows of portfolio investments. The methodology of the work is as follows. The paper develops k-means clustering model to study the patterns of global portfolio investment flows and equity markets. The model groups 30 developed and emerging stock markets according to three variables: return, risk and the level of international diversification. Thus, the main purpose of this paper is to investigate different stock markets on a global scale through an in-depth analysis of the respective market portfolios and their measures of risk, return and international diversification, as well as their interrelationships. The researcher develops and builds the model in such a way as to either confirm or refute the hypotheses put forward. The results of the study demonstrate the following results, which present opportunities for further research. The study supports the hypothesis that portfolios of investors from developed stock markets have a better level of international diversification than portfolios of investors from emerging stock markets. However, there is high within-group variation in the levels of international diversification among developed markets. There are three groups of developed markets based on the level of international diversification of investors in their respective markets: low-level markets (ca. 22%); mid-level markets (43%); and high-level markets (ca. 61%), while emerging markets are generally more heterogeneous. The hypothesis that stock markets that are domestic to investors with higher levels of international diversification have higher rates of return and lower rates of risk has not been confirmed. In general, developed stock markets are characterized by higher returns and international diversification with lower risk ratios. Nevertheless, the higher level of international diversification in developed market portfolios is not always accompanied by better stock performance. The best risk-return ratio (return – 0.46%, risk – 5.56%) is observed for markets from the cluster with an average level of international diversification. While the markets in the cluster with the highest level of international diversification have unreasonably high-risk ratios, which are not compensated by better returns. Markets in the cluster with lower levels of international diversification have unreasonably low rates of return that are not accompanied by correspondingly lower risks.

With the intensification of globalization processes and the high level of competition in international, regional and national markets, innovation has acquired the status of a major advantage for any country and has become the basis for ensuring its sustainable economic development. The use of new knowledge and technologies provides an opportunity to implement and intensify innovation and, as a result, to build an efficient and competitive innovation economy. Based on the above, the question arises of building a fundamentally new national innovation system, adapted to the socio-technological challenges, which should determine the competitive position of the national economy in the global arena. In this context, social capital, as a factor of readiness for technological transformations of the state and strengthening of competitive positions in the international markets, forms the basis for the expansion of research and transformation of the NIS. The purpose of the article is a theoretical substantiation of objective processes of transformation of NIS, taking into account modern trends and identifying the role and place of the social component in it. Given the fact that scientific and technological progress is an inevitable process, the relationship between the center and the periphery of the global economic system is characterized by unequal scientific and technological exchange, in which the peripheral countries are forced to pay intellectual rents contained in imported goods and services, as well as to act as a raw material and production appendage of the developed countries. The subject of the article is the transformation processes that take place in modern innovation systems under the influence of global challenges, as well as the social component, which is undoubtedly the driving force in the modern world for the promotion of domestic innovations, the development of high-tech business, and the increase of the level of technological readiness of society. The methodological basis of the study is the historical-logical method, the system-structural analysis of economic processes and phenomena, and the methods of qualitative comparison. Results. Social capital in NIS acts as a kind of litmus test, reflecting its efficiency and competitiveness, since the functionality and social role of the innovation system is expressed in providing society with innovations, technological goods, products and services that effectively satisfy the entire spectrum of human needs.

Innovation can make a difference in addressing urgent developmental challenges such as providing access to drinking water, eradicating neglected diseases or reducing hunger. The transfer and, when necessary, adaptation of technologies developed in developed countries can often contribute significantly to these goals. Undoubtedly the capability to innovate and to bring innovation successfully to market will be a crucial determinant of the global competitiveness of nations over the coming decade. There is growing awareness among policymakers that innovative activity is the main driver of economic progress and well-being as well as a potential factor in meeting global challenges in domains such as the environment and health. Not only has innovation moved to centre-stage in economic policy making, but there is a realisation that a co-ordinated, coherent, “whole-of-government” approach is required. Germany is one of the countries leading innovation development not only in the EU, but also on the world stage. Its innovative system is distinguished by a high level of efficiency and productivity, focused on modern development trends. Certain features of the innovative development of Germany and the role of state regulation in it will highlight positive lessons for Ukraine and implement the German experience at the national level.

At the beginning of the 21st century, most subjects of international economic relations announced a course to liberalize the world economy both as a whole and as its individual components. At the same time, under the influence of geopolitical and geo-economic aspirations, state instruments of a protectionist nature were increasingly used. Global economic development has become a hostage to such processes. In such circumstances, the efficiency of individual business entities has begun to decline. Innovative tools were needed to prevent this. One of them was economic diplomacy, which has acquired a special role in providing the promotion of the interests of both national economies as a whole and their individual subjects. At the same time, economic diplomacy itself covers different areas of economic activity and not all of them are investigated to the same extent. The purpose of the article is to study and analyze the financial component of economic diplomacy in modern conditions, the specifics of its formation and development, aimed at improving the national system of promoting national interests both within the state and abroad. To achieve this goal, the research is focused on the following tasks: to consider and analyze the theoretical basis of the financial component of economic diplomacy, to highlight its manifestations in various forms of international economic relations, to determine the main imperatives of state support for international investment partnership. Special attention is paid to the issues of external borrowing and the movement of public debt funds from the point of view of the influence of economic diplomacy on them. Based on the results of this review, a whole number of theoretical conclusions were made, which at the same time establish the basis for further research of the considered problem. Methodology. In the process of preparing the article, methods of scientific abstraction, observation, analysis and synthesis, generalization, as well as statistical and economic methods were used to assess a number of financial and economic indicators of state development in order to identify the weaknesses and prospects for the impact of economic diplomacy tools on them. The information and analytical base for the study are materials and analytical reports of international organizations dealing with the issues under consideration (UNCTAD, IMF, World Bank), regulatory and statistical data of state authorities of Ukraine and the United States, the results of scientific research of modern scientists from different countries. The results of the study show that providing the proper efficiency of foreign economic activity requires the use of a set of tools to promote and support its subjects. Economic diplomacy plays a significant role in this sphere. The development level of international economic relations actualizes the justification of the modern paradigm of the financial component, mechanisms for applying the tools of economic diplomacy in financial issues. All this requires a clear delineation and structuring of object-by-object areas and directions of efforts. Only on this basis, an effective mechanism for implementing the financial component of economic diplomacy can be formed. The practical implications of the scientific research are to find out the current state of economic diplomacy mechanisms in the financial sphere, trends in their development, and potential consequences for other states (including Ukraine). Value/originality. The studied mechanisms and practice of using economic diplomacy in the sphere of the financial component, in particular in issues of interstate investment partnership, external government borrowing, and work with public debt deserve attention from the relevant state structures of Ukraine on the implementation of tools and standards of economic diplomacy in this area. In addition, this study can serve as a basis for further research, since the considered problem contains the significant potential for further investigations in subsequent scientific publications.