The shortage of funds is the main, but not the only factor in the decline of innovation activity. In the conditions of a transitional economy, the scientific and technical sphere was unable to function in the new economic conditions. Scientific and technical developments do not always become an innovative product ready for production and effective implementation. There are problems of legal and organizational order in the protection and transfer of intellectual property, certification of innovative products. The investment mechanism of innovation activity deserves increased attention and significant improvement. Attempts to support all sectors of the country’s economy without taking into account the specifics of their innovation activities and the allocation of priorities do not allow market structures to develop successfully in this area. A special regime for innovations, risk insurance, venture funds, innovative infrastructure are the necessary conditions without which it is impossible to ensure an innovative breakthrough of both a state organization and organizations of other forms of ownership.
At the same time, not only large firms, consortia and associations, but also small organizations require the development of innovative activities. In developed countries, the latter provide about half of all innovations. According to the US National Science Foundation, the number of innovations in small firms per unit of costs is usually greater than in medium and large firms. In addition, small firms are almost a third ahead of large ones in the speed of innovation development. Thus, small innovative organizations are an important factor in the state innovation policy.
Of great importance in the formation of innovation policy is not only the development of a clear strategy and its focus on the formation of a progressive technological order, but also the ability to use the entire arsenal of tools of direct and indirect state regulation for investment in innovation.
The policy of public investment in innovation should be aimed at forming an effective structure of public spending, the level of which should not be less than a certain share of gross domestic product. Measures to increase the efficiency of budget spending should include: financing on an irrevocable basis only innovative projects that have a nationwide character and affect the improvement of the economic security of the country; expansion of the practice of competitive allocation of budgetary funds for the implementation of innovative projects submitted to organizations of any form of ownership. In this case, public and attracted private investments are allocated on a parity basis. First of all, this concerns extra-budgetary funds to support research and development work, part of which will be used to finance domestic and foreign patenting and the maintenance of international patents used in national projects.