Mechanisms of Financial Support for the Development of Innovative Entrepreneurship in the Digital Economy

Purpose: The purpose of the study is to analyze the effectiveness of financial support mechanisms for innovative entrepreneurship and develop new areas of incentives based on a synthesis of modern domestic research and world level. Design/methodology/approach: Methodological research tools include economic and statistical methods of analysis, comparison, analogy, graphical interpretation tools, as well as a systematic approach that reveals the main reasons that hinder the development of the innovation sector, and suggests directions for the transformation of certain forms of financial support for innovative entrepreneurship. Findings: In the article, based on an analysis of the main forms of financial support for innovative entrepreneurship and sources of financing used in the world and domestic practice, it is concluded that a systematic analysis needed of the relevance and effectiveness of each measure that meets the criteria of accessibility for most business entities and covers all stages of creation and commercialization of an innovative product. In the analysis of direct and indirect measures of financial support, barriers limiting their widespread use were identified, and new directions for stimulating the innovative activity of business entities related to direct cost subsidies and reducing tax costs were proposed. Originality/value: Implementation of the proposed financial support mechanisms for innovative entrepreneurship will contribute to the activation of the innovation process, obtaining economic and social effect in the context of the impact of external challenges in technological development.