Education Economics

Consequently, the countries that implemented  scientific-technical and industrial capital investment policy in prospective fields will be given a competitive advantage. Innovative way of development in investment policy. Highly development countries. that creates favorable conditions  for production growth on the basis of scientific innovations.

The state may avoid the responsibility of developing   the production activities , where special markets and competitive relations are formed. The direct instruments of state influence are oriented at supporting  private initiatives and innovative enterprises that will stimulate investment activities in certain fields and production initiatives.

Active investment process, especially in scientific and technological fields, innovative and scientific-technical activities lays in the foundation for economic growth. Significant reduction of company’s demand on innovations resulted in increase of financing Scientific field from the state budget. Priorities of innobative activities change at every stage of economic development.

which is connected to investments and results in production increase. that creates improved scientific innovations. Distribution of investments on Scientific – technical works.

It’s relatively typical for developed countries to distribute private and state capital investments even on scientific and technical works. For example, The USA’s private investment share in innovative market amounts to 50%. Technical modernization of equipments and their reconstruction requires attracting important investments in innovative field. Here it is important to activate state policy on scientific and technical branches and to work out important directions for scientific-industrial development of economy. Contract based applied science makes the realization of  scientific technical projects they will be implemented at the expense of the state budget, non state expenses attracted by Ventura, sharing  other financial mechanisms. State funds for innovations which is aimed at realizing prospective directions  of science  and technical development enables to  work out modern competitive production and organize its production. besides using state budgets expenses,   other  market mechanisms for attracting investments are used as well .

Effective use of stock market instruments provide opportunities  to attract investments in innovative field. Its main aim is to divide investment recourses among fields and provide inner and foreign  investment flows in more prospective sectors of national economy. Transitional economy doesn’t provide the conditions for populations to transform their savings  into innovative investments and provide economic growth. investment share  funds, credit contacts joint stack and commercial funds . attention to new forms of scientific-innovative and investment forms.

Main stages of innovative development.

Main directions of state investment innovative policy of the state in future main directions of  state innovative investment policy are: 1. choosing national priorities of innovative field development for realizing innovative projects, choosing the projects of technologies that influence production growth and rise in country’s  competitiveness. 2. Coordination of activities of  legislative and  executive bodies to work out complex approach to solve this question concerning country’s innovative development, effective functioning of innovative systems and implementation of state’s innovative investment strategy.

3. maintaining and developing scientific and industrial-technological potential of fundamental science, working out employee’s training system for maintaining and developing modern scientific and technological level and developing science to a higher level.

4. Providing favorable economic and financial conditions for activating innovative works, developing ventral, engineering and investment-industrial activities and for rising competitiveness creating  favorable conditions for investing in innovation field enables  modernization of scientific and technical basis of national industry as well as rising the competitions of the country.

So at first it’s necessary to create economic infrastructural and institutional basis for moving to investment stages of state development. New ways of implementing scientific-innovative  and engineering activities.

3. Creating favorable economic and financial condition for activating innovative works, legal industry and competitiveness.

- Creating the system at venture investment. state support of venture business in scientific technical field is necessary until the industry get interested in them.

- Using modern methods for prognosing engineering and scientific production marketing.

In connection to that, the role of country is defined by creating the mechanisms, which forms national innovative system and develops innovative production.

The formation of adequate investment activity model in the market system of economy provides replacement of investment recourse division with new forms of investments. The principles, boundaries and forms of state participation in investment activity

A state needs to strengthen its role in the field of investments, correct economic policy.  At the same time state participation boundaries in the investment process must be defined by taking the way of economic development, that is characteristic to the period of moving to market economy, into consideration conditions of strengthening the state role in the investment process.

State participation in investment process is not the same as turning economy to administration process. The topic of state participation pineapples in the investment activities is closely linked with limiting necessary financial potential for investment promotion Approximate calculations show that in order to restore the amount of investment to the pre-reform level, foreign investment growth is possible. The conditions existing in Georgian economic investment strategy is oriented at moving from stable investments to creating necessary investment environment for private investors. These two parts that are essential for the state investment policy must support prosperous fields of production and the policy must have systematic character.

Defining strategic priorities of investments.

Investing in innovative production will encourage new directions for investment flow, rising production level and encouraging economic growth. Significant  condition of effectiveness in the state investment policy is to work out the conception of structural alteration in industrial sector. Development of corporative forms will help the realization of long term industrial programs, and create conditions for the stable economic growth.

Stirring to activity of stake investment politics. At a modern stage, stirring to activity of stake investment about the stable economic growth in the basic condition of Georgian economy. Essential approaches of stake investment politics are: the reinforcement of supporting in prroritative tendencies of economic development formation of justifiable and economic conditions of stimulating the interest of investments in the real sector of economy and the agreement between central and regional investment politics.

State investments and supporting in prioritative tendencies of economic development. The realization of up-to-date tasks of economic development demands more active state backing of investment field. The problems of investment budgetary financing. Analysis confirms the existence of distinct dependence between state priorities and investment motivations of private investors. In Georgian economy. On the contrary, it was one of the factors, that conditioned the reduction of state centralized investments and weakening of state investment function. In accordance with, the usage of state investments as the factor of economic growth, requires essential changing’s in the organizations of budget politic and budget system.

While sharing the state Financial resources, used tendencies do not help to increase the effectiveness of investment and restructure national economy.

In the organization of investment process, lack of systematic ground and insufficient quality of budget planning caused permanent  failures in financing the state investment programmers.

This fact approves  that, it is necessary to reinforce the role of selective approach, gather state investments towards the strictly defined prioritative approaches, keep strict control and select competitive projecting during state investment.

Selecting mechanism of investment projects on the basis of competition/ In market economy, where basic criterion of investment is the effectiveness of investment, it is impossible to use the old technologies of sharing unpaidly, among enterprises in centralized capital investments, which don’t stimulate industries to improve their effectiveness, as direct state investments are less effective compared with the private ones. Thus, the most acceptable approach is the state supporting to private investments.

State supporting to private investments is realized in these investment  projects by means of the partial participation of the state, which have passed the competitive casting. The goal of centralized investment resources on the competitive basis is the reinforcement of investment assets, mobilization of private national and foreign investor’s capital towards the prioritative approach in economic development, and the growth of effectiveness in all forms of property such as commercial, budgetary and national-economic investments.

A new rule of financing investment projects in the financial ensuring of investment competent project, gives the right to investors to choose the participation forms. State investment revocable two year-term credit; its payment percent for the usage, compiles ¼ of central banks refunding rate;

The obligatory conditions, to present investment projects for the competition are:

In the field of investors’ supporting, new approaches such as connection to the certification of investment projects, giving state guarantees, creating the budget for development are used.

In the conditions of budget funds restriction, many investors consider the state guarantees of certified projects, as the most desirable form of state supporting. Development budget can be formed as the special instrument, that collects investment resources of state budget in order to finance investment projects and attract the funds of private investors.

Governance of state property in the state economic sector.

Governance of state property, as the factor of investment effectiveness in the state economic sector. Activation of the state role in the investment field, implies the development of state governance, reaching quantitatively higher level, restructurization of state sector and development for investment providence.

In must be said that, in the countries even under developed market economy, the governance of state sector is fulfilled under strict state governance control, from the interests of national economic development. State sector, must distinctly occupy the leading positions in achieving priorities of economic development and form the potential of economic growth. Activation of the state investment role must not be manifested only in effective investment projects of science-capacious industries, high technologies and vitally important fuelds by direct participation. More important constituent part of investment supporting of society in the conditions of market relation development is the encouragement of economic subjects’ investment activities and it must be oriented on progressive structural alteration. Greating the available conditions for increasing investment actives by the state, requires purposeful influence on reproductive processes at macro and micro-economic levels. Monetary-credit methods for investment stimulating. Less inflation channel of emission  is financing industrial investments by the state institutes of development.

In many developing countries, stable growth of economy was conditioned by localization of the greater share of money flow in the state banks, that locate mobilized savings in industrial investments and crediting resources, in accordance with the installed priorities of social-economic development.

A) The influence on the investments activity of banks.

In the growth of investment activity of banking system, it is essentially important to create the system of investment encouragement and insurance.                                                           Economic Dr of Science,

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