The role of government regulation in the formation of an innovative economy

Government regulation is an integral part of the formation of an innovative economy, playing a central role in creating and supporting an innovative environment that promotes sustainable economic growth and increases the country's competitiveness. In the context of globalization and rapid technological progress, government institutions must actively intervene in the development of new technologies, support research and development activities, and stimulate private and public investment in innovative projects. This article discusses key instruments of government regulation, such as tax incentives, subsidies for scientific research and the introduction of innovative technologies, as well as the role of government support for start-ups and small innovative enterprises. Particular attention is paid to the interaction of government agencies with scientific and educational institutions and the private sector, which ensures the effective implementation of innovations in production processes and an improved business climate. The article analyzes the impact of government initiatives on the development of innovative infrastructure, the creation of clusters and technology parks, as well as the formation of human resources necessary for the innovative transformation of the economy. The author concludes that comprehensive and consistent government regulation is the most important factor for the successful transition of the economy to an innovative path of development, which in turn contributes to increasing its global competitiveness and sustainability.