The article is aimed at exploring the status of economic activities and defining the principles of formation of a competitive strategy for innovative development of machine-building enterprises. The branches of the engineering complex of Ukraine are grouped; volumes of expenditures are analyzed according to the directions of industrial innovation of industrial enterprises and to the indicators of innovation at industrial enterprises; key principles of formation of a competitive strategy for innovative development of machine-building enterprises are allocated. The expediency of forming a competitive strategy for innovative development of machine-building enterprises is substantiated, which is based on the following principles: purposefulness, objectivity, adaptability and mobility, hierarchy, strategy, scientific validity, systemicity, optimality, complexity and coherence, competitiveness, sustainability, participativity and social orientation, balance, innovation and development, efficiency, validity of the indicator support, economic efficiency. Measures to address the problems of innovative development of machine-building enterprises are proposed, e.g.: developing and implementing effective programs to support and stimulate innovative development; providing governmental guarantees for projects that involve introduction of modern technological processes; creating a favorable investment climate that will attract means of foreign investors from the global financial market; introducing a system of benefits for enterprises; establishing a system of progressive taxation for entrepreneurs; developing a credit support system; creating an efficient regulatory framework; refocusing foreign economic activity on high-tech exports.
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