The article is devoted to the study of a pressing, scientific and practical problem - innovation modernization as a process of forming a new type of economy. The purpose of the study is to substantiate the theoretical and methodological foundations of the transition of the economic system to a high-tech knowledge-based economy of innovative development. To achieve the goal, the following tasks were performed: the theoretical foundations of transformation processes were considered; integrated approaches are formed; The analysis of innovative activity in the modernization of the economy. The analysis of the works of domestic and foreign scientists shows that transformation processes are subject to cycles, ups and downs. Following this classical theory, the transformational processes, according to the author, are a reboot of the economy and the beginning of the formation of a new technological order. The study used integrated approaches and methods: institutional; innovative - in determining the relationships and interdependencies in the economic system; system; structural and logical - when analyzing the share of information technology in the state and using advanced technologies. From the standpoint of macroeconomic theory, the application of advanced technologies will lead to increased competition. Increasing competitiveness leads to the stability of the economy, a new evolutionary process of forming a new type of economy begins through the mechanism, development, accumulation (processing) of knowledge - experience - alienation (conversion) based on digital tools. Applying the concept of “innovative modernization of the economy”, the author implies not only bringing the economic system to a new level, but assumes effective interaction of methods and tools in managing innovative renewal. Consequently, the innovation-based management system must always be in a state of renewal; it is these areas of modernization that can be considered the basis of integrated approaches. The materials and conclusions of this study can be useful in the implementation of a number of tasks of modernization of production, rationality of increasing the innovative activity of an enterprise, employees, in developing approaches to optimize production processes. The materials of the article are of practical importance, based on the national technological initiative, innovations and transformation processes, forming a new type of knowledge-based economy.
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