Romaninets R. Economic mechanism of innovative activity

Object of research: process of innovative activity in the structure of functioning of economic mechanism of market economy. Purpose of research: to conduct the analysis and to offer effective directions of improve-ment of mechanism of innovative activity of manage-ment subjects in a transitive economy, that will allow to expose financial backlogs, show the rational ways of the use them on an enterprise, to define the factors of forming of economic mechanism of innovative activity and their improvement in the modern economy of Ukraine. Methods of research: method of comparison, method of groupments, statistical analysis, management by objectives, graphic method. Results: from positions of economic theory a category is certain " innovation; conception of forming of economic mechanism of in-novative activity is developed; the place of institutional mechanisms is certain in forming of innovative activity; basic levers are explored in forming of innovative ac-tivity; the value of the decentralized factors is certain in conducting of active innovative strategy of firm in a transitive economy; offered widely to use possibilities of small and middle forms of business for the increase of innovative activity in the conditions of transitive economy. Novelty: first: conception of economic mechanism of innovative activity is developed; the sys-tem of the decentralized factors used for creation of economic mechanism of innovative activity is certain; improved: determination of category " innovation"; further development was got: determination of direc-tions of deformalization institutional space in the con-ditions of transitional economies. Field of the use: re-publican.