Resource Provision for Innovation: State and Incentive Measures

World governments attempt to develop their country’s scientific and innovative potential to ensure security, increase national competitiveness, and progress towards a knowledge society. These all facilitate effective response to internal and external socio-economic and political challenges, and further development. Financial resources are the focus of this study, as they are key to optimizing the innovation process and can be transformed into information, material and technical resources, human capital, and ensure functional interaction of all types of resources. Moreover, financial resources are also mandatory at all stages of innovation. Analysis of the state and distribution of research and development costs based on official statistics shows the real situation of the country, as well as identifies the main obstacles to the development of innovative activities on its territory. The uneven distribution of economic activity and geographical financial resources, an unfavorable investment climate, under-developed innovative infrastructure and financial state policy (in the field of innovation) and ineffective innovation project appraisal limits the increase of economic agents’ liquid assets and leads to the stagnation of innovation activity in the country.