Ways of increasing enterprises' innovation activity

The article deals with topical issues of modernization of the Russian economy. Argues «modernization from above» only by the state is not possible. It is necessary to participate in this historic process business and labor organizations. However, depicts a large government role in providing incentives for upgrading business and labor, to overcome the monopoly in the economy. Only competition can force the Russian organization «chase» for innovation. Along with this article shows the role of the state in encouraging businesses to invest in staff organizations, and involve employees into ownership and control. In this regard, the experience of some developed countries are showed. The special attention is paid to the choice of the path of economic modernization in Russia. «Westernization» is described as a dead-end road of modernization, which is promising for a modernization of the national model for the example of a number of Eastern countries. The paper also shows the feasibility of the modernization of labor relations in the example of «Uralelectromed».