The article presents the results of a study of the state role in the modern process of innovative development. It relies on academic literature and research to evaluate government measures, such as creating the necessary environment, subsidies and various tax incentives. The analysis of the indirect impact on the innovative development of the country is made through the education and training of scientists and researchers, creation of institutions, as well as supporting the structure for the commercialization of innovation. The synthesis of estimates of the effectiveness of government intervention in the innovative development of the economy is used. A comparative analysis revealed the features of the innovation system in Russia: in comparison with developed countries, unique conditions were created for business development through a comprehensive fiscal policy, however, private sector interest in innovation remains low. Therefore, priority directions in development remain measures to improve the business climate, increase the investment attractiveness of the country and promote competition. With a high degree of involvement of domestic universities in R&D, the relationship with the private sector remains poorly developed, which impedes the commercialization of projects under development, which also leads to the leakage of personnel from the country and reduces the competitiveness of domestic enterprises. The state should create the necessary conditions for the development of an innovative economy and actively work to eliminate these barriers, primarily by stimulating business activity and internal competition. In the future, it is necessary to develop sectors that already have serious competitive advantages, such as oil and gas, mining, agriculture, as well as the banking sector, transport, food processing and electricity, and also focus on development choices full-time promising areas with personnel potential.