DETERMINANTS OF INVESTMENT SUPPORT: PRINCIPLES, MECHANISMS, EFFICIENCY

In general terms, the economic mechanism is understood as a set of subsystems that make its functioning. According to the subject of this research, there is an objective need to consider the place of the investment support mechanism in the economic mechanism of an enterprise. The investment mechanism is a functional component of the economic mechanism in the light of the financial mechanism, in which investments act as a lever, and investment is as a functional subsystem. The investment process is the main component of the investment activity, which is characterized by cycles and determines the use of investment resources for their growth or achievement of certain effects in the enterprise activity. The investment mechanism on the enterprise level should be seen as a complex of interacting factors, principles, goals, objectives, leverage affecting the socioeconomic development of organically interrelated elements of enterprise functioning. The investment mechanism of an enterprise should be conventionally divided into two components: the mechanism of the investment support and investment management. The mechanism of the investment support can be realized in the following forms: self-investment, lending, public investment, venture investment and grants. Implementation of the investment mechanism as a process of management is only possible subject to certain principles. The development of the power industry lies in preparation and implementation of innovative projects of modernization, reconstruction and technical reequipment of fixed assets, therefore the mechanism of the investment support of an innovative project should be viewed as a systematic process of investment of financial, material and non-material and labour resources, which are allocated for implementation of an innovative project to develop and make an innovative product to achieve progressive structural economic changes. The main determinants of the investment support of the power industry innovative development include: strategic goals of innovative development adopted at the state level and secured at the enterprise level, availability of a well-developed investment infrastructure, which implies financial resources provided by special funds to enable implementation of the mechanism of the investment support in relation to individual innovation projects; sources of investment, which can provide innovation projects with sufficient long-term, affordable funds, and others. Implementation of innovative projects can be carried out by various sources of investment. Therefore, in order to determine the effectiveness of the mechanism of the investment support of the power industry innovative development the value of the investment cost was calculated. A comparative analysis was conducted to study the attraction of investments by selling shares on international stock exchanges (IPO), issuing bonds and opening a bank credit line