Innovation as an instrument of present-day transformation of the economy: A theoretical aspect
<p><b>Importance</b> The article considers the nature of innovation and innovative development from a theoretical perspective.</p><p><b>Objectives</b> The aim of the study is to analyze key approaches to determination of the substance of innovation, identify specifics enabling innovation to be a key instrument for economy transformation to innovation pattern.</p><p><b>Methods</b> The study employs the comparative method of analysis.</p><p><b>Results</b> The paper states that innovation is considered form three points of view, i.e. as a change, a process, and as a result; determines a correlation between the concepts of novation, novelty, and innovation, and gives reasons for impossibility of their identical usage. Innovation is defined as the end result of activity (process) of introduction of novation (idea, product, technology) in order to change qualitative characteristics of the object of control for technical, scientific, commercial or other effect. Theoretical and practical significance of findings is in the elaboration of theoretical basis of innovation-driven development of economy, which allows to create a holistic view of specifics of innovative economy formation.</p><p><b>Conclusions</b> The key precondition for innovative economy formation is increased efficiency and effectiveness of all its sectors, as well as domination of innovation-based principle of economy management.</p>