FINANCIAL INCENTIVES TO INNOVATIONS IN THE FORESTRY SERVICES SECTOR IN SLOVAKIA FROM THE RURAL DEVELOPMENT PROGRAMME

The provision of financial incentives is one of the three basic functions of the innovation system for support and dissemination of innovations in the forestry sector. This paper deals with the possibilities and conditions of providing financial support granted by The Agricultural Paying Agency under the project support of the Rural Development Programme 2007-2013 and 2014-2020. Based on the theory of intervention rules it sets up the evaluation criteria, which uses to assess if the formulation of the selected forestry measures is appropriate, efficient and effective to support and motivate contractor firms in Slovak forestry when introducing innovations into practice. The results point out that the strict conditions set up in the period of 2007-2013 within measures number 1.4 and 2.2.4 caused that financial incentives did not fulfil its function within innovation system. The conditions of obtaining financial support in the period of 2014-2020 are significantly improved with an emphasis on innovations. Measures number 8.6 and 16.1 - 16.3 appeared as the most important within the supporting of innovations in the forestry service sector. It can be assumed that they will ensure a higher level of motivation of contractor firms to implementation innovations.