FORMATION OF AN INNOVATIVE ECONOMY AND FACTORS CONTRIBUTING TO ITS DEVELOPMENT

This article examines the role of innovation in ensuring sustainable economic development and increasing the competitiveness of the national economy, with particular attention to the banking and business sectors. The study analyzes the importance of innovative technologies, digital transformation, scientific research, and modern educational systems in the formation of an innovation-oriented economy. Special emphasis is placed on the existing problems that hinder innovative activity, including insufficient financial resources, outdated technical infrastructure, weak interaction between science and production, and the shortage of qualified personnel. The article also proposes practical measures aimed at stimulating innovation processes through state support, public-private partnerships, tax incentives, modernization of research institutions, and the development of international cooperation. The findings highlight that the effective implementation of innovative technologies contributes to economic modernization, increased productivity, job creation, and enhanced competitiveness in global markets.