Klimova N.P. Models of financing for innovation, and their possible applications in the Republic of Belarus

Abstract: This article examines the following possible models for financing innovation: linear, cluster and venture. The author demonstrates the most prominent options for utilizing each model for financing innovation, their strengths and weaknesses. The author analyzes the chief factors that impede the abovementioned models of financing for innovation in the Republic of Belarus. The goal of this study is to find out the models that are the most suitable and adequate for the current economic realities of financing innovation in Belarus. Attention is drawn to the mechanism of government regulation and stimulation for innovation in the Republic of Belarus. The author compares the financing models, basing on the existing practice of their implementation in Belarus. Thus, of the three models being examined - the linear, the cluster and the venture - the cluster model turned out to be the most acceptable one. Innovation as a process of realization of the fruits of scientific research demands tight cooperation of scientific organizations, manufacturing organizations and financial institutions. On one hand, this ensures comprehensive examination of ways to stimulate innovation industry, and on the other hand, allows to consider the specifics of each field of work in innovation.

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