Introduction. The study examines the role of public administration in the development of innovations in healthcare as a promising sector of the economy. The focus of the work is on analyzing one of the ways to increase the effectiveness of such an instrument of state innovation policy as startup development management. In order to systematically provide targeted support to these subjects, it is necessary to study and analyze the criteria of startups. Their legislative enshrinement will make it possible to increase the degree of compliance of the state support measures with the requests of these organizations and optimize the spending of budget funds.Materials and methods. Materials and methods. The works of such foreign authors as S. Knack, F. Kiefer, M. Olson, P.E. Samuelson, R. Layard, C. Catacorpi and J-P. Knack, F. Keefer, M. Olson, P.E. Samuelson, R. Layard, K. Katakorpi and J.P. Laamanen, D. Anomali, L.M. Shen, D. Keeble, G. Goodguin. Laamanen, D. Anomali, L.M. Shen, D. Keeble, G. Goodgin, E. Freeman, D. Reed, N. Carter, Y. Cho, G. McLean, E. Rees, M. Crezzi, P. Paoloni, T. Veblen, W.C. Mitchell, D.M. Clark and D. Commons, as well as domestic scholars such as E.V. Aristov, D.O. Tarabara, I.V. Raeva, P.A. Sataev and K.A. Soloveichik. Their methodological basis was supported by data from statistical documents and strategies of WHO, IMF, OECD, ECB, Global Health Investment Fund (GHIF).The study is based on the approaches of the economic school of institutionalists who emphasize the special role of the environment and institutions that have a direct impact on it in public administration, and is also based on research on the provision of public goods. The following general scientific methods were applied in the work: analysis, synthesis, system and functional approaches.Research results. The study analyzed the genesis of the formation of the need to legislate the concept of a startup and its criteria. The adoption of the relevant regulatory legal acts in Russia has created conditions for the creation of a unified register of small technology companies and seamless implementation of targeted measures to support innovation activities.Discussion and conclusion. Further development for the realization of the innovative potential of the healthcare sector is possible through the finalization of the existing legislation. Proposals to make medical technology companies a separate category may form the basis for potential measures aimed at supporting small medical technology companies. This will allow to systematically develop targeted measures to support them and better meet the specifics of their needs.