Instituto de Estudios Políticos y Derecho Público "Dr. Humberto J. La Roche"
de la Facultad de Ciencias Jurídicas y Políticas de la Universidad del Zulia
Maracaibo, Venezuela
Esta publicación cientíca en formato digital es continuidad de la revista impresa
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Vol.41 N° 78
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Septiembre
2023
Recibido el 05/02/23 Aceptado el 16/04/23
ISSN 0798- 1406 ~ De pó si to le gal pp 198502ZU132
Cues tio nes Po lí ti cas
La re vis ta Cues tio nes Po lí ti cas, es una pu bli ca ción aus pi cia da por el Ins ti tu to
de Es tu dios Po lí ti cos y De re cho Pú bli co “Dr. Hum ber to J. La Ro che” (IEPDP) de la Fa-
cul tad de Cien cias Ju rí di cas y Po lí ti cas de la Uni ver si dad del Zu lia.
En tre sus ob je ti vos fi gu ran: con tri buir con el pro gre so cien tí fi co de las Cien cias
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ti ga do res; es ti mu lar la in ves ti ga ción en es tas áreas del sa ber; y pro pi ciar la pre sen ta-
ción, dis cu sión y con fron ta ción de las ideas y avan ces cien tí fi cos con com pro mi so so cial.
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avan ces o re sul ta dos de in ves ti ga ción en las áreas de Cien cia Po lí ti ca y De re cho Pú bli-
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Vol. 41, Nº 78 (2023), 104-115
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
Legal dimensions of innovative
development management functions
DOI: https://doi.org/10.46398/cuestpol.4178.07
Galyna Liakhovych *
Viktoriya Ivanyuta **
Ganna Mokhonko ***
Oksana Vakun ****
Ulyana Lyakhovych *****
Abstract
Using dialectical, systemic, logical and historical methods
of scientic knowledge, the main purpose of the article was to
study the features of the state legal regulation of the innovation
development management system. The subject of the research is
the system of innovative development. The sphere of innovation
at the present stage acts as a highly organized type of activity that
requires the reciprocal inuence of the state. The experience of
developed countries shows that the existence of a market economy is not a
sucient condition for technological growth. It is concluded that consistent
state regulatory measures are needed to create a favorable innovation
climate to help develop the country’s scientic and technical potential. As a
result of the study, a number of key aspects of state legal regulation of the
innovation development management system were identied.
Keywords: legal dimensions of development; legal aspects; innovative
development; state regulation; public policies for
development management.
* West Ukrainian National University, Ternopil, Ukraine. ORCID ID: https://orcid.org/0000-0002-
0077-9128
** Zhytomyr Polytechnic State University, Zhytomyr, Ukraine. ORCID ID: https://orcid.org/0000-0002-
4037-5590
*** National Technical University of Ukraine “Igor Sikorsky Kiev Polytechnic Institute”, Kiev, Ukraine.
ORCID ID: https://orcid.org/0000-0003-2126-6871
**** West Ukrainian National University, Ternopil, Ukraine. ORCID ID: http://orcid.org/0000-0002-
7774-7204
***** Deputy Head of the Public Relations Department of the National Anti-Corruption Bureau of Ukraine,
Kyiv, Ukraine. ORCID ID: http://orcid.org/0000-0001-9279-9208
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Dimensiones jurídicas de las funciones innovadoras de
gestión del desarrollo
Resumen
Mediante el uso de métodos dialécticos, sistémicos, lógicos e históricos
del conocimiento cientíco, el objetivo principal del artículo fue estudiar
las características de la regulación legal estatal del sistema de gestión del
desarrollo de la innovación. El tema de la investigación es el sistema de
desarrollo innovador. La esfera de la innovación en la etapa actual actúa
como un tipo de actividad altamente organizada que requiere la inuencia
recíproca del Estado. La experiencia de los países desarrollados muestra que
la existencia de una economía de mercado no es condición suciente para el
crecimiento tecnológico. Se concluye que se necesitan medidas regulatorias
estatales consistentes para crear un clima de innovación favorable que
ayude a desarrollar el potencial cientíco y técnico del país. Como resultado
del estudio, se identicaron una serie de aspectos clave de la regulación
legal estatal del sistema de gestión del desarrollo de la innovación.
Palabras clave: dimensiones jurídicas del desarrollo; aspectos legales;
desarrollo innovador; regulación estatal; políticas
públicas para la gestión del desarrollo.
Introduction
Innovative business is one of the most important factors supporting the
economy, a key driver of economic growth in many countries. Even crisis
conditions are not able to change the priorities of innovative development
in the context of globalization. The use of knowledge and innovation as
the main sources of economic resources makes it possible to raise the
economy to a new level that meets modern civilizational requirements.
There is an urgent need for changes in the national innovation system,
the implementation of which requires the creation of special support
mechanisms by the state.
Increasing the eciency of material production and the competitiveness
of products is based on the use of new high-performance equipment and
progressive technology, the use of modern organizational forms and
economic methods of management.
Innovative activity is an activity carried out at one’s own risk, aimed
at making a prot from the implementation of innovations (including
the commercialization of scientic or scientic and technical results).
Modernization should dier from innovative activity, the fundamental
dierence of which from innovative activity lies in the local nature of novelty
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Legal dimensions of innovative development management functions
due to the absence of a sign of high risk (the concept of modernization
corresponds to a broader understanding of innovation in the modern sense
and requires a dierent, more limited system of state support measures).
Modernization activity, with a certain similarity to innovation, diers
from the latter in signs of novelty from the global level to the local one. As
part of the modernization, methods are being introduced that have been
previously tested by other participants and have proven their eectiveness
in the same eld of activity. Innovations are associated with the development
of fundamentally new approaches.
The law of innovation activity can be considered at present as an
intersectoral complex institution of national law, which includes the norms
of administrative, nancial, civil, business and other branches of law. In the
structure of this complex intersectoral institution, it is possible to single out
relations that are predominantly private and predominantly public legal in
nature.
In innovative legal relations, the state can act in a special status
(management of innovative activities, support of innovative activities) and
in the status of a direct participant in innovative activities - an innovator.
Regardless of the role played by the state, its participation in innovation is
due to a special interest.
If a business, investing in new technologies, promoting new products
on the market, is ultimately interested in making a prot, and the amount
of this prot serves as a criterion for the eectiveness of innovations,
the interest of the state lies in the development of the economy through
innovation. By stimulating innovative activity, the state is interested in
increasing the competitiveness of enterprises (not in a particular, but in the
whole industry, region, country), which leads to an increase in the prots
of these enterprises, respectively, there is an increase in the tax base, and
ultimately, an increase in the social obligations of the state.
Public administration is carried out by using certain administrative-legal
forms and methods. An analysis of the scientic literature makes it possible
to single out two administrative and legal forms of state participation in
innovation activity: direct and indirect.
Management of innovation activity is an indirect form of state
participation in innovation activity. Management in the classical sense
includes the stages of planning, accounting, analysis, control and
regulation. In the state management of innovation activity, these stages are
represented by the denition of state policy (including budgetary) in the
eld of innovation activity - planning, implementation of state statistics -
accounting, rule-making in the eld of innovation activity - regulation, state
control in the eld of innovation activity.
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The main purpose of the article is to study the features of the state-legal
regulation of the innovation development management system.
1. Materials and methods
The methodological basis of the article is the fundamental provisions of
economic science, the theory of innovative development, scientic works
of scientists on the problems of legal regulation of innovation. To solve the
tasks set, dialectical, systemic, logical and historical methods of scientic
knowledge are used, which ensure the conceptual unity of the work. The
following methods were used in the research process: structural-logical,
scientic abstraction, analysis and synthesis, modeling and abstract method
for drawing conclusions. The information base of the study consists of legal
documents and publications.
2. Literature review
Innovation is dened as the end result of the implementation of new ideas
and knowledge in the national economic system, due to the availability of
sucient funding, in the form of new products, technologies, organizational
and managerial decisions, which ultimately provide a qualitative increase
in the initial cost, leading to the economic growth of the national economy,
increasing competitiveness in the long run (Atusiak and King, 2020).
Among the general methods of management in innovation activity, the
method of stimulation stands out, which is closely related to the method
of persuasion, but has signicant dierences. The very stimulation is the
main method of state management of innovation. In the system of private
methods, the program-target method, the method of state support, and the
state order are distinguished (Dligach, 2022).
In recent years, the program-target method has been used predominantly
in the state management of innovation activities. The specicity of this
method involves focusing on the sectoral approach, which consists in
identifying priority areas for innovation in order to further provide state
support measures in these areas.
Some scientists note that the state order is not only a form of direct
participation of the state in innovation as an investor and intellectual
owner, but also a form of state support for innovation. The advantages of
the state order as a form of implementation of innovative activities by the
state include its simplicity - no additional mechanisms or special subjects of
law are required. In addition, the close connection between the state order
mechanism and targeted programs is a sign of the systemic integration of
this form with the state management of innovation activities.
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Legal dimensions of innovative development management functions
At the same time, the state order, with its insuciently universal and
not always objective procedures for evaluating and selecting applications,
cannot eectively stimulate the private sector to implement truly large
innovative projects. This requires specially created by the state special
participants in the innovation process - state-owned companies and
corporations (Fadeev, 2012; Gontareva, 2018; Hrebennyk, 2021).
As most scientists note, in the conditions of the post-industrial stage
of development, the eciency of functioning and the ability to develop
any economic system (organization, region, state) is determined by
susceptibility to innovation, that is, the ability to provide conditions for the
continuous renewal of various forms of activity in accordance with changes
in the external and internal environment. In the modern world, economic
growth is, on the one hand, the main factor in the development of countries,
on the other hand, it is the result of scientic and technological progress,
the introduction of innovations in various elds of activity.
The innovative economy, based on innovation activity, is a special type of
economy that ensures the development of the economic system through the
renewal of knowledge, innovative factors and post-industrial technologies
(Kalashnyk, 2020; Krylova, 2020; Kryshtanovych et al., 2022).
Despite the active scientic and practical attention to the issues we have
chosen, today some aspects of the state-legal regulation of its innovative
development still remain undisclosed.
3. Research Results and Discussions
The complex and systemic nature of innovation activities has a direct
impact on the composition of its subjects, which is characterized by
breadth and heterogeneity. Two groups of subjects take part in innovation
activities: entities that directly carry out innovative activities and ensure its
implementation.
The state investment policy should be aimed not only at the entities that
are the owners of the invested funds and at the entities that provide nancing
for the implementation of investment projects, but also at the entities that
act as professional intermediaries in the investment services market. Such
nancial intermediaries are called institutional investors, and their activity,
being permanent and professional, is to mobilize temporarily free capital
from various sources with subsequent investment in the economy through
collective investment schemes.
Institutional investors act as a special instrument of state regulation
of the economy, allowing them to accumulate signicant capital and
concentrate it under the control of a single entity, which leads to an increased
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state interest in regulating activities as part of the implementation of state
investment policy.
Particular attention on the part of the state to the activities of institutional
investors is due to the fact that they invest the money savings of the
population, but are not automatically included in the system of compulsory
insurance of the risk of losing invested funds, which leads to the need to
protect non-professional investors from such a risk (Margaryan, 2021;
Kryshtanovych et al., 2021; Mastrobuoni, 2020).
Priority areas in the infrastructure provision of state support for the
innovation activity of technoparks should be: the formation of basic
centers for innovation activity (innovation platforms); ensuring prompt
and veriable information exchange between innovative structures (based
on the principles of relevance and complexity); integration of available
resources (human, nancial, material and others) for the purposes of
maximum targeted use; search for new ways and opportunities for state
support of innovation activity with justication of the expected payback.
The system of infrastructural provision of state support for innovative
development is based on the principles of target and organizational
certainty, the creation of a single information space (based on the resources
of the digital economy), focusing on the specic features of the socio-
economic development of regions.
A tripartite model for determining the key factors of innovative
development, presented in Fig.1.
Figure 1. A tripartite model for determining the key factors of innovative
development. Formed by authors.
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Galyna Liakhovych, Viktoriya Ivanyuta, Ganna Mokhonko, Oksana Vakun y Ulyana Lyakhovych
Legal dimensions of innovative development management functions
At present, there is an obvious need to combine the eorts of the state
and business to satisfy the public interest in strengthening national security,
accelerating the socio-economic development of the state, improving the
quality of life of society as a whole and of each citizen individually. Public-
private partnership mechanisms are recommended as ways to solve various
kinds of public and state problems in strategic planning documents of a
territorial and sectoral nature, and individual laws. Various legal forms
of public-private partnership are being actively implemented in the EU
countries.
Public-private partnership can be carried out in various legal forms,
in particular, in the form of concession agreements, production sharing
agreements, a special investment contract; agreements on conducting
activities in special economic zones, lease agreements with investment
terms, trust management and other contractual structures using special
legal regimes - territories with special regimes for doing business,
mechanisms for the development of territories provided for by urban
planning legislation, project nancing.
Despite the readiness of the legislator to introduce public-private
partnerships everywhere in the implementation of state investment policy,
in practical terms, the implementation of such projects raises a number of
problems: the lack of xing some legal forms of public-private partnerships
in the legislation, for example, the model of the operator agreement,
institutional form, life cycle contract.
Innovative development requires the necessary investment, while the
promotion of investment activity should be considered in the context of the
general innovative vector of the strategic development of the state. In the
modern world, it has been unconditionally proven that investments in the
development and development of innovations are the most protable.
They guarantee a high return, laying a reliable foundation for maintaining
the scientic and technical potential at the required level, thereby ensuring
the country’s competitiveness in world development. However, innovation
activity is the object, the regulation of which only with the help of market
mechanisms is not enough. They cannot ensure the emergence of long-term
initiatives for accelerated technical development in the absence of stable,
scientically reasoned, and eective government regulation mechanisms
that help attract investment in the scientic and technical sphere (Sylkin,
2021; Zakharchenko, 2020; Zarichna, 2018).
The state innovation and investment policy is the activity of the state
aimed at creating favorable regulatory and economic conditions for
investment and investment in innovation, stimulating the process of
creating investment conditions for innovative development, as well as
forming a market for innovation and investment.
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A four-sided model of the main threats to the regulation of innovative
development, presented in Fig.2.
Figure 2. A four-sided model of the main threats to the regulation of innovative
development. Formed by authors.
Within the framework of the general legal policy, the main directions of
innovation policy are formed to stimulate, develop and eectively use the
innovation potential, forms of state support for the subjects of innovation
activity are established. The basic vector of development in this area should
be aimed at creating the regime of the greatest assistance to the subjects of
innovative activity, regardless of organizational and legal forms and forms
of ownership.
The state and individual specialized bodies, scientic and educational
institutions, representatives of large, medium and small businesses, citizens
whose creative work creates intellectual property are involved in innovative
activities, ideas for eective application are being developed.
The state as a subject of innovation activity is represented by a number
of state structures and systems of public authorities that develop and
implement the main directions of state legal policy in the innovation
sphere. The state as a subject of innovation acts as a legislator, as a system
of management, supervision and control in the eld of innovation, and as a
system of specialized bodies.
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Galyna Liakhovych, Viktoriya Ivanyuta, Ganna Mokhonko, Oksana Vakun y Ulyana Lyakhovych
Legal dimensions of innovative development management functions
Representatives of innovative business are legal entities and individuals-
entrepreneurs who directly carry out innovative activities or invest in them.
Specialized subjects of innovative activity are created, as a rule, within the
framework of an individual project in connection with the implementation
of a special project or type of activity. The status of subjects in the eld of
innovation is dierent and depends on organizational and legal forms.
In the scientic literature, the following organizational and legal forms
of subjects of innovative activity have been identied: state corporations, as
a subject endowed with the powers of management bodies, on the one hand,
are an economic entity, on the other; investment funds (for example, state,
non-state and international investment funds for the support of scientic
and scientic and technical activities); innovation centers; Techno parks
and other forms of state support for innovation.
The participants of the innovation process can be: associations and clubs;
technological platforms formed in the most promising areas of innovative
development - aviation and space technologies, nuclear and radiation
technologies, and others; innovative territorial clusters; development
institutions; private industrial parks, youth entrepreneurship and others.
The state should support subjects in the innovation sphere.
This can be carried out according to long-term target programs for
the development of innovation activity, departmental target programs
for the development of innovation activity, lists of measures aimed at
the development of innovation activity. State support to the subjects
of innovation activity should be provided in priority areas of innovation
activity in the following areas: agro-industrial complex; electric power
industry; informatics and telecommunications; mechanical engineering;
construction and housing and communal services; chemical industry;
healthcare; transport complex.
Conclusions
Summing up, it should be noted that innovations today are the most
eective means of technological development of enterprises, ensuring
strong market positions based on signicant competitive advantages, which
makes it possible to get out of the state of economic depression. Innovative
development is a determining factor in the eciency of an enterprise,
based on the introduction and implementation of innovations that improve
its activities, ensure the strengthening of its market position and create
favorable conditions for its development.
In a general denition, innovation is an innovation in the eld of
engineering, technology, labor organization or management, based on
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the use of scientic achievements and best practices. Innovation is the
end result of innovative activity - that is, activities associated with the
transformation of scientic research and development, other scientic and
technological achievements into a new or improved product introduced to
the market, into a new or improved technological process used in practice
or a new approach to social services.
Modern studies show the existence of a close dependence of the
international competitiveness of the national economy on the level of
innovation activity in the country. The higher the level of innovative activity,
the greater the competitiveness of the country in the world market.
Countries with a more developed innovation infrastructure and a high
level of innovation activity form a leading cluster in the global economy,
occupy more competitive positions in the system of the international
division of labor, which ensures an additional inow of foreign capital in
the form of direct investment in the economies of these countries. Eective
borrowing of innovative technologies allows for a relatively short period of
time to ensure a signicant increase in the competitiveness of the national
economy in the world economy, which is conrmed by the experience of
countries called “Asian tigers”.
Innovation clusters play a signicant role in increasing the level of
competitiveness of the national economy due to the high concentration of
innovative companies that are intensively involved in the development,
commercialization and diusion of innovations. Large-scale nancing of
innovations allows for active implementation in economic practice, which
leads to a new quality of economic growth of national economies, the basis
of which is innovative development. This should be the focus of further
research.
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Esta revista fue editada en formato digital y publicada
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Vol.41 Nº 78
