The article suggests developing the innovative policy of the state at the regional level on the cluster principles. The implementation of the innovative development model in the “science – education – production” system has been enlightened. The role of the relevant institutional space, which combines the positive aspects of the administrative and political reforms, is highly important for the construction of innovation process into a single mechanism. It is advisable to develop the organizational and economic mechanism of innovative processes in the agricultural sector on certain priority areas.
Not only the lack of the qualified staff, law educational level or imperfection of tax incentives, but institutional support undevelopment on the base level of the reformation of the economical relations create the main problem in the activation of the innovative corporate business activities in Ukraine. Administrative and political reforms are prematured. They increase the economic risks and reduce the innovative and investment activity of the business and economy. Unfortunately, the foreign investors estimated the Ukrainian business-climate and business circumstances for 2.14 points out of 5. That is the lowest index in the history of research.
Key elements of the above mentioned mechanism are the implementation of innovative projects in the production, development of entrepreneurship in scientific and technical sphere of the agricultural sector, the formation of pricing based on the development of mutual interest of all the agrarian market participants
Key words: agricultural sector, innovation policy, organizational and economic mechanism, institutional support.