This paper contributes to the literature on financing innovation, the role
of government founding innovation, forming a mechanism of financing innovative
processes, as well as system of interaction between public finance and
innovation in agricultural sector. The analysis shows relationship between
government regulation tools and innovation in agriculture. In matters
of innovation financing, state needs to take into consideration a special role of
conversion mechanism from scientific ideas to application development, from
prototype to mass production, which we defined as the process of innovation.
Nevertheless, the results of our study are of interest to policy makers. The analysis
exploits a unique scheme of financing innovation could be used to build an
effective financial mechanism for agricultural innovation and authors believes
this will helps to improve the system of state financing innovation processes
thus ensuring sustainable agricultural technology. Direct methods are more suited
to promote basic and applied research, while the indirect methods are more effective
in the area of commercialization of their results. The essence of indirect
methods of financing innovation is to provide innovative agricultural projects with
necessary material, technology, human and information resources. Scientific novelty
of the research is to develop recommendations for improving the existing methods
of financing innovation, allowing more accurately than existing methods and
approaches to ensure widespread and effective development of innovative agribusiness
enterprises Keywords: financing innovation, government financing, sustainable technology
innovation
