Budgetary and Tax Tools for Stimulating Innovative Development of Entrepreneurship in the Conditions of the National Economy Digitalization

Abstract

With a deep conviction that innovation is a key driver of economic development, this study explores the essence of the concept of innovative entrepreneurship and the role of the state in stimulating it through budgetary and tax instruments. Fiscal and budgetary instruments encompass a set of measures employed by the state to ensure the appropriate level of financing for specific sectors of the economy and to regulate the relationship between taxpayers and the state budget. In order to identify problems and propose solutions, an analysis of the level of innovation-active enterprises in Ukraine was conducted, and the structure of expenses for innovation management by sources of financing was examined. The primary budgetary and tax measures to stimulate innovative entrepreneurship in Ukraine are outlined. Based on the analysis, recommendations are presented to enhance the effectiveness of using budgetary and tax instruments to stimulate innovative entrepreneurship, which can contribute to ensuring the sustainable development of the national economy in the face of global technological changes and digitalization. The balanced and coordinated application of budget and tax stimulation tools, guided by a well-considered strategic vision of Ukraine's state policy measures, is one of the challenges of the current phase of economic and societal transformation in the context of ongoing challenges, including war. Prospects for future scientific research lie in a more in-depth examination of the possibilities of utilizing tax incentives, considering existing contradictions and debates, as well as grant support to foster innovative entrepreneurship and ensure the growth of the national economy amidst current security threats in Ukraine.