of regulation is the quintessence of market, corporate and state institutional norms of
influence on processes. Only the mentioned aspect of the construction of regulation
creates conditions for the freedom to choose the features, the competitive satisfaction
of needs and innovation in the development of the economy.
In the theory of regulation, the concept of a coordinated and liberal market
economy is also singled out. According to U. Lazonik, in a liberal model coordination
of forms interaction is carried out primarily by the market, market forms of
coordination. The practice of functioning of economic systems shows that the goal of
regulating the economy is necessity ensuring rationality of socio-economic relations
due to limited resources in certain institutional conditions, thus regulation - is in
essence the coordination of the activities of economic agents [3].
The development of the theory and methodology of economic science involves
the accumulation of experience and the formation of scientific approaches to
understand the mechanisms of interaction of objects, phenomena, as well as the
functions of subjects of the market process. One of them, and perhaps not the most
important, is regulation, as a manifestation of the power of some entities in relation to
others, in order to ensure a rational allocation of resources.
In addition, an important and fundamentally significant mechanism of market
regulation of economy and production is, in particular, the innovative mechanism or
the mechanism of innovation support. It is in its essence - the significance implies the
necessity of introducing scientific achievements in order to optimize organizational,
economic and technological factors of competitiveness. This mechanism appears to be
present in all other mechanisms and, together with the institutions, determines the
conditions for their functioning and the effectiveness of economic activity.
The innovative mechanism as the determinant of effective market regulation
should ensure the creation and implementation of innovations, which in the aspect of
the formation of effective regulatory policy involves the adoption of effective
organizational, technological, commercial and administrative-management decisions.
All this should be aimed at ensuring the competitiveness of production as an important
socio-economic system.
It should be noted that not every product of innovation is innovation, there is still
such a concept as innovation - a product of intellectual technological labor, which is
characterized by novelty and only if the introduction into business turnover is
transformed into innovation. It is the fact that the transformation of novations into
innovation is a problematic aspect in the real institutional provision of innovation
competitiveness of production [6].
Thus, the Government of Ukraine at the present stage of development of the
country in particular, and the world economy as a whole, should improve the
institutions of regulation and innovation development, since regulation is an institution
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