The role of investment and innovation policy in the conditions of forming the circular economy

Abstract

In conditions of limited resources and unlimited needs of mankind, the formation of a circular economy, which is aimed at energy saving and economically clean production and consumption, is relevant. Unlike the generally accepted, traditional linear economy, a circular economy is a tool for saving resources and materials and, as a result, is a path to sustainable economic growth. The latter is one of the main tasks both nationally and internationally. The purpose of the study is the development of theoretical and methodological support for the formation of a circular economy, taking into account the investment and innovation policy of the state. The research is based on the study of the essence of a circular economy based on investment and innovation policy. The main tasks of the circular economy are systematized. The relationship between the tasks and priorities of the circular economy is presented. This will direct the strategy of the circular economy to sustainable development, maintaining the quality of life, promoting environmental safety, health care, and demographic conditions, as well as deepening cooperation with the world community in solving environmental problems. The article contains a graph analytical analysis of the dynamics of capital investments by type of economic activity; dynamics of the structure of capital investments by sources of financing. The algorithm for the introduction of a circular economy on an innovative basis has been developed, which involves the development of an active or passive environmental strategy, balanced between the economic goals of enterprise development and the negative consequences of its impact on the environment and society, depending on socio-ecological and economic goals. This will optimize the socio-ecological and economic policy of the enterprise. The developed recommendations for the introduction of a circular economy, taking into account the investment and innovation policy, will improve the quality of management decisions and ensure their direction to improve the market positioning of the enterprise. Keywords: investments, innovations, investment and innovation policy, circular economy, development.