Institutional conditions of the economic mechanism formation of industry development

Technical development of the industrial sector is one of the main conditions of creating a modern Ukrainian industrial complex, which can be a powerful engine of long-term economic growth of the state and respond to changes in the world market conditions. The technical development of Ukrainian industrial sector does not meet the current requirements and is characterized by unhealthy tendencies because of the low activity of industrial enterprises creating the advanced manufacturing technologies. The appearance of such a situation is caused by many factors, ranging from the lack of financial resources for innovation to the imperfection of the legislative base. It is necessary to identify factors which contribute to the process of technological development of the industry in order to provide innovative industrial development. The purpose of this article is to research the institutional conditions of economic mechanism functioning of the technical development of industry and innovative development of economy. The classic conditions and fundamental investigation of foreign and domestic scholars, statistical data and results of author's research of the problems of economic mechanism in industry has formed the basis of the article. The scientific abstraction, generalization of scientific experience of modern theoretical studies, comprehensive approach methods have been used. The paper reviewed the concept of the economic mechanism, its structure, elements, and also the most important characteristics. It also considered institutional conditions of its formation. The main problems of the domestic industry on the path to innovation were singled out. The theoretical positions of institutional conditions of the economic mechanism formation ground the methodological basis for the formation of economic mechanism of technical development that could enhance the investment process in industry. The research shows that in the modern condition of Ukrainian economy development, there is an exigency in formation of the implementation mechanisms of innovative type of development by the use of an effective set of institutions. Currently, the institutional organizations demonstrate ineffective work. The search of financing the development issues have not yet solved and require further research. To sum up, an important component of the economic stabilization situation in Ukraine needs to be radically changed in the view of existed principles of modern production, as well as the formation of an effective mechanism of development of industry.