Representatives of the State Agency of Ukraine for Investments and Innovations (hereafter – the Agency) took part in a dialogue “Public funding of commercial innovation and infrastructure”, which was held on April 22, 2008 in Kiev at the premises of the National Academy of Public Administration under the President of Ukraine and initiated by the Regional Office of  the World Bank.

Deputy Head of the Agency Sergii Margaschuk informed those present with the experience of the Agency in public financing of commercial innovation. In particular, he reported that in 2007 the state has provided financial support for 19 innovative and investment projects totalling 144.5 million UAH.

Continuing this theme, Deputy Head of the Agency Sergii Moskvin stressed that the experience of other countries included public financing of commercial innovation which could occur not only by cheaper and loans, but also through the public investment. To do this, it should be created a corporate venture investment fund of innovative development with the state stake. According to him, public investment is not contrary to the private in the case when the private sector does not have adequate incentives to invest the assets of innovative enterprises. Public investment in corporate venture capital investment fund of innovative development is a vital process. Through 5–7 years after ascending capitalization fund, for example, by 2–3 times, shares which belong to the state may be sold and the funds will return to the state budget.

Establishment and operation of corporate venture investment fund with the participation of public and private sector can become an example of public-private partnership with the goal of ensuring the innovative development of the country.