Economic and communication borders are being eliminated all over the world and different states are focused on innovation and efficiency as the key success factors. The book is aimed at studying the role of innovation in national economies and provides comparative analysis of innovation strategies and potential of EU Member States and Ukraine. EU innovation development is analyzed on the basis of the Lisbon Agenda; Ukraine was chosen as the country with high intellectual and innovation potential which is of high importance for future European integration. The paper studies legal basis, defines main achievements, indicators of common EU innovation policies. Set of recommendations for state innovation policy in Ukraine on the basis of EU experience was elaborated which constitutes the added value of the research. Practical solutions can be used by innovative enterprises for advancement of their activities on the basis of relevant EU experience. The analysis is necessary for the improvement of national innovation strategies and consequent higher productivity, that is why it will be of high interest for state officials and experts engaged in innovation policy making.