Фінансові механізми розвитку машинобудування в Україні

Engineering firms in Ukraine need to be modernized in order to restore their competitiveness in both internal and external markets. To do this they need to obtain certain amount of financing either from market or budget via various state aid programs. Overall weakness of Ukrainian financial sector and market mechanisms, together with poor investment attractiveness and low creditworthiness, results in inability of most Ukrainian engineering firms to raise funds in the market. This makes state aid essential to ensure survival of a certain percent of engineering firms in Ukraine. The previous experience of state aid gives reason to doubt advisability of continuing such practice in the future. It is time to amend the foundation of state aid practices by: implementing restructuring state aid for Ukrainian firms; shifting from vertical towards horizontal state aid, namely R&D and employment funding programs, and ensuring equal access to such programs for all firms that meet qualifying criteria.