Financial support for stimulating IT enterprises: European practices

Abstract

The article explores financial mechanisms aimed at stimulating the development of IT enterprises based on European experience. The purpose of the study is to analyze European practices of financial support for the IT industry and substantiate recommendations for implementing effective support instruments in Ukraine. The methodological basis includes a systemic approach and comparative analysis - policies supporting the IT sector in EU countries were examined, and the expert evaluation method was applied to identify best practices. It was determined that information technology is a key driver of economic growth, and its successful development significantly depends on effective financial incentives. The European experience of supporting IT enterprises is analyzed, including tax incentives, grant funding, venture capital funds, governmental co-financing programs for startups, and the creation of technology parks and incubators. The study reveals that these instruments in EU countries promote innovation, expand digital service exports, and attract investment to the IT sector. Based on the comparative analysis, proposals for adapting European mechanisms in Ukraine have been developed - particularly, improving tax incentives for IT companies and establishing targeted innovation support funds. The scientific novelty lies in systematizing the European experience of financial support for the IT sphere and substantiating performance indicators of such incentives in the Ukrainian context. The practical significance of the results is that the proposed recommendations can be utilized by governmental authorities to formulate an effective financial policy supporting the IT industry, contributing to Ukraine's digital transformation, enhancing competitiveness, and facilitating successful integration into the European digital market.