No Paper Title Author Name Page No

Table 1.1. Scientific approaches to the definition of the concept of "economic mechanism" 
The name of the scientific 
approach and the main 
representatives 
The essence of the definition 
A mechanistic approach 
A sequence of states, processes that determine any action, 
phenomenon; an internal structure, a system that determines 
the order of any type of activity 
Functional approach 
The definition of an economic mechanism is based on taking 
into account the type of economic relations and forms of 
labor organization 
Information approach 
An economic mechanism is a communication system in 
which participants exchange messages with each other and 
the center, which allows them to form an economic result. 
Process approach 
The mechanism is the resource support of the process, its 
material part and includes a set of interrelated elements 

---

11
A
MERICAN Journal of Public Diplomacy and International Studies
www.
 grnjournal.us 
 
"configured" to perform the function of the process; 
A mechanism is a set of resources of an economic process 
and ways to combine them. 
Thus, it can be stated that it is most expedient to achieve the goal of our research (that is, to 
improve the theoretical foundations of the formation of a mechanism for the implementation of 
the state policy for the development of the domestic market of innovative goods) this is the 
construction of the concept of such a mechanism based on a systematic combination of 
information and process approaches. In addition, taking into account the need to coordinate the 
interests of all subjects of the market of innovative goods, it follows from its definition, it is 
advisable to choose the creation of an integrated mechanism that will include both a management 
mechanism and an impact tool, and an interaction mechanism as an interaction tool for all 
subjects and objects of the market. 
The principles of the mechanism should be: 
the principle of adaptability: the mechanism should respond quickly to changes in external and 
internal factors; 
the principle of integrity: the mechanism must have stable, long-term connections that can 
withstand external and internal loads; 
and the principle of self-organization: enabling all subjects to choose and combine directions, 
forms of interaction, methods of problem solving; 
and the principle of property protection: any property of all market participants, especially 
intellectual property, must be protected; 
and the principle of investment protection: investments in scientific research, 
technological entrepreneurship, etc. All market participants must be protected; 
the principle of manufacturability: the elements of the mechanism and their interrelationships 
should be built on an innovative and informational basis; 
and the project principle: the decomposition of goals and their achievement within the 
framework of projects (including national, regional, sectoral, etc.); 
the principle of coordination of interests: the algorithm of actions of market entities should 
provide for the achievement of coordination and realization of interests; 
the principle of budget efficiency: it is necessary to avoid low efficiency of budget expenditures 
(that is, the current underfunding of state targeted and budget programs, which makes their 
budgeting and implementation predictable, violation of the principle of priority financing of 
budget programs as a result of lobbying the interests of individual ministries and departments; 
blurring of the formulation of goals in budget programs, which makes it impossible to determine 
the criterion of their effectiveness; imitation of performance indicators, when indicators are 
selected as indicators that can be easily achieved, but at the same time they do not make any 
economic sense). 
We can present the implementation mechanism as an integral system, which consists of: 
1. the object as a sphere of interests of market subjects, which is adjusted as a result of the 
actions of the center aimed at coordinating their interests and improving the efficiency of the 
market; 
2. the center determines the basic rules of the game, as well as organizes and/or controls the 
implementation of the rules developed by the subjects on the basis of taking into account the 
interests of all parties; 
3. algorithm as a set of actions of subjects aimed at achieving coordination and realization of 

---

12
A