There is no alternative to innovative development

The paper highlights a very important challenge - forest sector economy innovation development. The study pointed out one of sufficient forest sector challenges deficient interaction of research and development with real business needs since despite positive changes share of innovation developments in research and technical products is still low. It is suggested to address this problem through establishment and development of innovation units at research institutes aimed at organization of innovation developments and its introduction in forest management practices. It will enable sector efficiency growth as well as salary and researcher incentive rise and improvement of research capacity. The paper covers key innovation research areas at VNIILM at the moment and in the long run.