Determining the Role of Innovation Policy in Ensuring the Development of the Industrial City

Under present conditions, the economic growth of the industrial city is impossible without using the results of innovative activities, latest achievements in science and technology which affect the development of production forces, reproduction and competitiveness of the country on the world market. The innovation policy plays a special role in ensuring reproduction processes. It consists in the development of directions and mechanisms of introduction and use of innovations in the production practice of enterprises, organizations, institutions. The aim of the article is to determine the role of innovation policy in ensuring a stable development of the industrial city.The analysis of international experience shows that any country chooses as priority those economic sectors which have all the necessary conditions for gaining competitive advantages over other players on the market. This requires the organization of the production of high-tech products, establishment of maximum possible cooperation between sectoral enterprises within the industrial city. The perfect model of the innovation mechanism under market conditions is characterized by the fact that an important incentive for innovation has become profit maximization. Solution of problems concerning financial incentives for innovation processes at different management levels is the main condition for ensuring the long-term objectives of economic growth of the country.The drawback of the current innovation development of the country is the imperfect institutional and legal mechanisms for providing the formation of the effective system of government bodies. The authors offer to form a special coordinating body that should collect and analyze the incoming information, process it, identify competitive advantages and, therefore, act as a coordinator of innovation development in the industrial city for the whole chain of innovation cycle from inception of the idea to entering the market of finished products. Such a body may become the Centre for innovation development of the industrial city that has territorial binding to areas where the innovative activities are carried out, and is controlled by city authority able to correct the state policy and legislative measures when forming the innovation environment.