Innovation financing and its impact on the agricultural sector of Ukraine

Abstract

The agriculture sector of Ukraine generated from 9,1% to 14,2% of Ukrainian GDP during 2012-2023 and is critical for ensuring the macroeconomic stability of the country, with a share in total export income between 27,8% and 57,2% during the same period. The financial performance and sustainable development of the Ukrainian agro-industrial sector have a major impact on the socioeconomic stability of society, especially at the current time, and also on the prospects of economic recovery and further growth. The market value of industry-forming agro-industrial enterprises reflects the efficiency of their economic activity and ability to generate added value. For the prospect of future economic recovery, it is important to investigate how innovations are associated with the economic development of countries in the world, and specifically, how government spending on research in the agriculture sphere is historically associated with the market value of Ukrainian agro-industrial companies. Consequently, the article aims to evaluate the association between innovation development and economic performance at the level of countries and the level of the Ukrainian agricultural sector. For the achievement of the research aims, comparative economic analysis and statistical methods were used, such as regression analysis. Based on the study results, it is possible to conclude that innovation development is associated with economic development and is a slightly more important prerequisite for the economic prosperity of countries that have a share of oil exports of less than 10% of total exports. Also, it was found that during 2013-2023, the total market value of selected agro-industrial companies positively correlated with government spending on R&D in Ukraine. With the regression model, it is possible to explain around 68% of selected agro-industrial companies’ market value variation and closely capture the general trend of 2013-2023 stock price movements. Study results can be used by policymakers to make data-based strategic decisions.