ABSTRACT
This chapter aims to studying the role of innovations in the modern economy and specifying their economic essence using the materialist conception, dialectical method, and qualitative and quantitative analysis. In the modern business environment, the importance of innovations is growing. Innovations include all novelties in production, financial, organisational, research and educational activities. The primary element of innovation systems and innovation activity is innovations, that is novelties and introductions reflecting the process of transformation in a particular area. The most important component of innovation processes is the introduction of these elements resulting in the renovation of current production and its technical base. Classifying innovations according to the mentioned criteria helps to choose the type of innovation strategy of the enterprise, to design and create organisational and economic mechanisms of management, or to determine the position of innovative products on the market and forms of selling and promoting innovative products.
