Transformation of the theory of innovative development: evolution and modern institutional trends

The use of innovations in economic activity determines the effectiveness of economic entities and contributes to improving the competitiveness of national economy sectors. This position confirms the importance of diffusion of innovations for the state, which should encourage their development and further intersectoral distribution. However, there are problems in determining the essential characteristics of innovation and ambiguity in ways to activate innovation processes at all levels of management. Theoretical approaches to the implementation of innovative development are in a dynamic state and are constantly being transformed under the influence of the qualitative state of the external environment. The article analyzes the evolutionary development of the theory of innovative development and considers the author’s assumption that at the present stage of innovation practice, the key source of activation of innovation processes is the institutional environment, and financial aspects are secondary. It is the formation of a favorable institutional environment that should become the target of state policy in the field of support for innovation processes, since without a strong institutional mechanism, the rational use of financial sources of state support is not possible. To confirm the author’s point of view, the theory of innovative development was analyzed and the main institutional provisions of innovations that determine the fundamental importance of institutional relations in the development of innovation practice were set. The result of this work is the systematization of scientific and theoretical knowledge and the formation of the institutional apparatus of the theory of innovative development, which can be used to develop practical recommendations for the implementation of state support for innovation processes.