Innovations are the main drivers of growth in the modern world. The development of new technologies allows the economies of the countries, by introducing them to benefit from higher revenues and provide better living standards for their citizens. At the current stage of development Mongolia is in desperate need of the new technologies in its economy, especially because these innovations can allow its economy to develop faster and steadier. In this article the authors discuss the main directions of innovative development of the country and the possible ways of their implication in the economy of the country, revealing the key issues in this process. The aim of the article is to prove the ineffectiveness of innovations in the Mongolian economy at the current stage and develop the ways of enhancing their productivity in the country's economy.