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The paper studied the structure of institutional mechanism of employee incentive to create innovations in engineering enterprises. The main factors of influence on improving institutional mechanism to employee incentive of innovation-oriented enterprises are defined. The characteristic of the main components of the institutional mechanism of employee incentive to create innovation is given. Recommendations for improving the use of economic instruments to employee incentive are given. It is established the need to improve resource support necessary for the employee to develop innovation and distribution of information resources for management decisions towards improving the performance of enterprise innovation. The structure of institutional mechanism to employee incentive will increase an innovation activity of the national innovation-oriented enterprises. Author Biography Тетяна Борисівна Твердушка, Kyiv National Economic University named after Vadym Hetman, 54/1 Prospect Peremogy, 03680, Kyiv Senior Lecturer Department of Personnel Management and Labour Economics

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