Innovation System as a Basis for National Economic Development

Abstract

The article discusses the importance of the innovation system in the economic development of a country and its impact on various sectors of the economy, enhancing competitiveness, ensuring sustainability, and improving the quality of life of the population. Different aspects of the innovation system are examined, including its components, structure, processes, relationships, and interactions, as well as mechanisms for its development. The role of the innovation system in the development of the economy is analyzed, and it is demonstrated that the importance of developing an innovation system for the national economy lies in its ability to enhance competitiveness and support sustainable economic development.Current trends and problems in the development of the innovation system worldwide are investigated, and ways to improve its functioning are proposed. Various typesof innovation systems, including technological, social, and business innovations, are also examined, and the positive economic consequences of innovation development are analyzed.The research is based on the use of theoretical sources and the study of the experience of foreign and domestic scientists regarding the development of the innovation system. Scientific achievements are summarized and the expediency of creating and functioning of clusters as a tool for increasing the competitiveness of the national economy is substantiated. The result of the research is the formulation of recommendations to improve the effectiveness of the innovation system and ensure its compliance with current requirements and trends in the development of the global economy. In addition, the research aims to popularize the concept of an innovation system among the business community, scientific community, and government structures, which will contribute to the further development of this field.