Financial Instruments for Stimulating Investment and Innovation in Technical and Technological Provision of Crop Production

Abstract

The study is aimed at substantiating the role of financial instruments in stimulating investment and innovation activity in the system of technical and technological support of crop production, as well as at systematizing their functional capabilities within the framework of the modern financial mechanism of the agricultural sector. In the study the methods of systemic and comparative analysis, generalization of scientific approaches, structural-functional classification, as well as elements of institutional and logical approaches to the study of financial and economic concepts are applied. This allowed us to comprehensively consider the evolution of interpretations of financial instruments and determine their place in innovation and investment processes. In the process of research, it was established that financial instruments are multifunctional means of influence that ensure the accumulation, distribution and targeted use of financial resources in crop production. It is proven that their effect goes beyond the limits of purely resource provision and includes the formation of economic incentives that influence the behavior of business entities regarding the introduction of innovations and modernization of production. The generalization of scientific approaches made it possible to identify key groups of financial instruments: tax, budget, credit and financial, investment, risk management instruments, foreign economic, grant-donor and digital-innovative. It is substantiated that their interaction forms a complex mechanism for stimulating the technical and technological renewal of agricultural production, increasing the investment attractiveness of the industry and the implementation of innovative solutions. It is proven that financial instruments perform not only a provisioning, but also a stimulating function in the development of crop production, forming economic incentives for the modernization of production. The results of the study confirm the achievement of the set goal and allow us to assert the need for further study of the effectiveness of individual tools in the context of digitalization and European integration processes.