Ludmila Solianyk, Anita Minko

National Mining University, Ukraine

key funding sources at regional leveL

Its important falling behind developed countries in social and economic development as well as in scientific and technological one makes transition to innovation type of development necessary condition for maintaining economic and political sovereignty. Today Ukraine faces inevitability of deep correcting economy which idea is not only economic growth. Its innovation nature should become basis for stable economic progress as well as high competitiveness within the world economic area.

Realization of the state policy aimed at development of necessary economic, institutional, scientific and technological, and social factors of validation of Ukraine as high-technology country, and its joining high-technology world countries should become the fundamental of new strategic course of innovative development. It should be noted that this very objective may become foundation not only for economic strategy but also for political consolidation of the nation.

We believe that successful realization of national projects will be possible if concept of realization of mechanism of regions of Ukraine on innovative basis is developed with the help of cluster approach. Under current market relations economic branch is next to virtual idea. However, authors of the majority of regional strategies and programs of social and economic development still work in accordance with old party and command canons. As for the new approaches they foresee indirect influence on general economic development through creating conditions for private business. Implementation of the cluster model of regional economy development will favour mutually advantageous cooperation between government, business, and scientific institutions.

Thus just cluster development of regions is the condition of innovation- oriented economy, stimulation of process of innovation, modernization, and interaction of key parts. Regional competitiveness is based on efficiency improving owing to promotion of innovations, improvement of business environment, and creation of efficient branch clusters. As the world practices show, improvement of competitiveness of region depends on application of two-component approach:

- Improvement of business environment of operations of business. It will ensure creation of economic and legislative, and institutional platform within which clusters and separate companies compete with each other

- Mobilization of clusters which will give ability to put first things first and to intensify advantages and spheres of business environment; it will help companies to boost production and competitiveness; it will guarantee dialog between government and business.

Thus, it is obvious that the state is quite interested in backing clusters. Among other things it should ensure:

1.Close cooperation between clusters and scientific research institutions, and instituions of higher education

2. Financing technological innovations as well as their implementation

3. Creation of adequate supporting and stimulating regulatory framework.

It is expedient to implement cluster model of regional competitiveness improvement in Ukraine with the help of pilot project implementation within separate the most developed regions among which Prydniprovsky Industrial Region is. Dnipropetrovsk Region ranks second after Kyiv in the Index of Global Competitiveness of 2014-2015 among regions of Ukraine. Economy of Dnipropetrovsk Region has powerful heavy industry thanks to which it makes a great contribution to the country economy. That’s why it is industrial iron heart of Ukraine. Dnipropetrovsk Region assures more than 15 per cent of the country GDP[1].

It is important to show businesses which sectors development is attractive for region; where they can find absolute support of the state including financial and credit policy, and where they can best incorporate in the program of the region development. Grounding selection of the most attractive that is key clusters of regional development project aimed at competitive growth of regional economy should be effected according to specific criteria. Central of them are:

- Level of economical growth potential (volume and dynamics of employment of population, contribution to welfare of a region)

- Fragmentation of cluster, level of small and medium business development, level of competition

- Potential of the project efficiency that is possibility of operative alternations at a regional level within cluster approach to make the project successful with participation and support of representatives of cluster.

Following additional criteria should also be taken into account:

- International competitiveness of cluster

- Geographical depth

- Communications with other clusters within economy of region.

Analysis of conditions and dynamics of economical growth of Prydniprovsky Region show that there are a number of problem zones which may be influenced on within regional development project. Among them are:

- Low level of diversification of economy and domination of heavy industries (e.g. machine-building industry, metallurgical industry, chemical industry)

- declining employment in some key sectors (e.g. agriculture, finance services, aerospace industry, defense industry)

- Poor level of modern science intensive sectors development (e.g. business services, communications, electronics etc.).

That very time Dnipropetrovsk Region has a number of competitive or potentially competitive clusters owing to which hardening and growth of competitiveness of the region is possible (e.g. clusters of agriculture, construction, chemical industry etc.).

The following key funding sources at regional level can be singled out:

· public financing (provides means for general infrastructure improvement and services quantity in the region; depends upon the funds available at the national level and current state priorities);

· international institutions funding (involves using range of such financial instruments as credits, investments into assets);

· public and private partnerships (require financial obligations and correspondent experience of the region);

· direct foreign investments (require proactive role of regional authorities in attracting and constant support of investors).

Lack of access to powerful investors interested in the region, investors who appreciate unique characteristics of the region. Most part of the regions waste their time attracting non-target investors as they have no idea about the type of investor they need. Thus they decrease efficiency of their work. Having selected the approach to investment attraction at regional level it is necessary to develop the correspondent structure and build effective mechanism to attract the investment to the key clusters:

· atracting target foreign investors as the expense of purposeful positioning of the region as the one which is attractive among the selected branches and clusters;

· asistance to the potential investors in solving all the necessary administrative and legal questions within simple, comprehensive and customer-oriented process;

· constant support of the companies that operate in the region;

· making regional policy corresponding to strategy of direct foreign investment attraction;

· asisting the companies working in the sphere of searching corresponding partners and suppliers to widen their presence in other regions as well;

· ceating positive image and brand of the region at global level, goods and services promotion produced in the region;

· interaction with key interested parties aimed at ensuring correspondence the processes and structures to objectives and view of the region.

References:

1. Державна служба статистики України [Електронний ресурс] – Режим доступу : http://www.ukr.stat.gov.ua