© 2017
Polishchuk V. A., post-graduate student 
(scientific advisor – Doctor of Economic Sciences Kh.Z. Makhmudov)
Poltava State Agrarian Academy 
FORMATION OF THE EFFECTIVE INNOVATION SYSTEM AS A WAY OF IMPROVEMENT OF AGRARIAN ENTERPRISES COMPETITIVENESS
Reviewer – Doctor of Economic Sciences O. S. Mykhailova
One of the main and the most effective directions of an agrarian sector development is innovative one, as it positively effects the modernization of an agribusiness industry, improves a competitiveness on the basis of a technical and technologic renovation of production. The main components of the innovation system are business and scientific-research sectors. In the process of this system formation it is necessary to take into account peculiarities of an economic development as well as geographical and business conditions of the production. The efficiency of the innovation system is primarily associated with a number of advantages which it has: firstly, it is oriented on market needs that exclude the possibility to develop outdated innovations; secondly, the access to scientific research results will be available to not only big agrarian enterprises but small and individual agricultural producers; thirdly, that will be attracted to the work with new technologies of production, machinery, or modern organizational and economic forms, will have the opportunity to study both at educational institutions and scientific-research structures.
Keywords: the innovation development of enterprises’ competitiveness, resource potential, effectiveness.
Statement of the problem. The functioning of agrarian production, providing its competitiveness and innovation character is one of the most important components of the economic system in Ukraine, which forms more than 10 % of GDP.
One of the main and the most effective directions of the agrarian sector development is innovational, as it positively influences the modernization of agro-industrial complex, raises its competitiveness on the basis of technical and technological renovation of production.
The analysis of the latest research and publications, in which solving of the problem was initiated. The problem of the agrarian sphere innovation development has recently been investigated by several scholars. For example, Joseph A. Shumpeter in his work substantiated the importance of innovations in forming the effective model of economic relations: the main resource of social-economic effectiveness is based on innovations’ research. M. Kondratiev, M. Tugan-Baranovskyj confirmed, that innovation economics is competitive. The theory and methodology of innovations in agrarian sector, in particular, was developed by V. Geil, Ya. Fedulova, 
Yu. Lepenko, V. Shebanin and others.
The aim of the research is defining theoretical and methodological foundations, forming the efficient innovation system and revealing its problem aspects. 
The task of the research is providing the reformation of agrarian production under the conditions of European integration, on the basis of innovation development. 
Materials and methods of research. One of the ways of solving this question is creating the effective agrarian innovation system, which, in our opinion, is a definite mechanism of cooperation of organizations and enterprises, which function in the direction of technological, organizational, and managerial transformations in the agrarian sector.
Results of the research. The main components of the innovation system are business, consumer, and scientific-research sectors. It is expedient to take into account the peculiarities of economic development during the formation of such system, and also geographical and economic conditions of production. The effectiveness of the innovation system is connected, first of all, with a number of advantages, which it provides: firstly, it is oriented at market demands, which excludes the possibility of working out non-actual innovations; there is the possibility of attracting small and medium businesses of the agrarian sphere for determining the priorities of scientific investigations; secondly, not only large agrarian enterprises, but also small agricultural producers will have the possibility of access to scientific developments, it is connected with the possibility to use certain innovation on beneficial terms, for example, leasing payment for modern machinery and others; thirdly, the workers, who will be attracted to deal with new technologies of production, machinery or modern organizational-economic forms, will have the opportunity to study both at educational establishments and research institutions. 
Conclusion. The complex approach to reforming the agrarian sector enables to evaluate the real state of its innovation provision taking into account natural and economic conditions and, thus, to form the effective innovation system. So, agrarian innovation system will become the integration basis for different institutions of the agro-industrial complex and will perform innovative, informational, reference, and educational functions, and also will provide the performing of topical research for agricultural enterprises and creating agro-innovations. The innovation product is an important result of such system’s functioning. 
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