Investment development of digital innovations through the interaction of institutional and individual investors

Abstract

The purpose of the article is to study changes and identify problems in modern processes of attracting household savings by insurance companies, non-state pension funds, and collective investment institutions, outlining promising areas for the effective merger of investment fund capital and private investment to strengthen digital transformation investment through expanding the introduction of innovations in the Ukrainian economy

Methods. The goal is achieved through solving problems using general scientific and special research methods: dialectical approach, methods of analysis and synthesis, induction and deduction, retrospective analysis, vertical and horizontal analysis, graphical method, logical approach and generalization method.

Results. Trends of relative expansion of the investment market capacity in terms of venture capital and long-term contracts of non-state pension insurance were identified due to the attraction of household savings by institutional investors. These investments were recognized as sources for investing in digital innovation startups that provide high performance based on the use of artificial intelligence to solve problems in the military sphere and cybersecurity, transportation and logistics, real estate construction, medicine and healthcare, and the financial ecosystem. Among the problems on the path of innovative processes of digital transformation of the national economy were recognized: depletion of the solvency potential of household budgets in war conditions, decreased trust in financial intermediaries due to high uncertainty of the economic situation, and ignorance of modern trends in digital transformation in the world and in Ukraine.

Conclusions. The article proves the necessity and possibility of activating the processes of financing promising digital innovations in the economy of Ukraine based on the mutually effective participation of institutional and individual investors in the implementation of AI startups. The implementation of the described directions for the development of cooperation between non-bank financial intermediaries and households in the investment and innovation sphere of digital transformation should be intensified already during the period of post-war reconstruction of the Ukrainian economy.