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Liburkina L. M.

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The Essence and Meaning of the State-Based Regulation of Innovations in the USA
Likhota O. V.

Likhota, Oleksandr V. (2025) “The Essence and Meaning of the State-Based Regulation of Innovations in the USA.” Business Inform 3:53–59.
https://doi.org/10.32983/2222-4459-2025-3-53-59

Section: Foreign Experience

Article is written in Ukrainian
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UDC 339.9

Abstract:
The study examines the institutional structure of the State-based regulation of innovation in the USA, which is characterized by multi-levelness and the diversity of involved organizations. The key roles of three leading agencies have been analyzed: the National Science Foundation (NSF), the Defense Advanced Research Projects Agency (DARPA), and the National Institutes of Health (NIH). NSF, established in 1950, is an independent federal agency that supports fundamental research and education in all non-medical fields of science and engineering by funding universities through grants and cooperative agreements. DARPA, the research and development organization of the U.S. Department of Defense, founded in 1958, is responsible for developing new technologies for military purposes by funding high-risk projects with potentially high returns in universities, private companies, and research institutes. NIH, the main government agency of the United States responsible for medical research, consists of 27 institutes and centers that conduct their own research and fund external research at universities, medical schools, and hospitals. It is determined that the State-based regulation of innovation in the USA, represented by NSF, DARPA, and NIH, is a comprehensive and effective system that covers the entire cycle of the innovation process: NSF funds fundamental research, DARPA focuses on breakthrough military technologies, and NIH – on medical research. Each agency has a unique mission, but they all contribute to technological progress by collaborating with various organizations. Their activities have had a significant impact on the development of technologies such as the Internet (NSF and DARPA), GPS (DARPA), as well as achievements in medicine and medical science (NIH). The budgets of these agencies, which are formed by the U.S. Congress, are critically important for the country’s innovative development. An important feature is not only the independence of these agencies but also their interaction and coordination, which allows avoiding duplication of efforts and ensuring a synergistic effect. Further research may be directed towards studying the mechanisms of interagency cooperation and evaluating its effectiveness. Also perspective is the analysis of the impact of the State-based regulation on the private innovation sector. Particular attention should be paid to studying the role of universities as key centers of innovative development in this system.

Keywords: innovation, government regulation, USA, NSF, DARPA, NIH, research funding, economic growth, public-private partnership, technological leadership.

Bibl.: 32.

Likhota Oleksandr V. – Candidate of Sciences (Economics), Associate Professor, Department of Human Resources Management, Labor Economics and Public Administration, North Ukrainian Institute named after Heroiv Krut of Interregional Academy of Personnel Management (17 Promyslova Str., Chernihiv, 14017, Ukraine)
Email: [email protected]

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