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The article is devoted to definition of the functional value of the many-sided phenomenon of the innovation process in ensuring positive dynamics of economic development and appearance of cyclic fluctuations in the market economy. It differentiates component elements of the "innovation process" category and conducts its structurisation. It describes the essence of "novation", "innovation", "innovation activity", "innovation project" and "innovation process" notions. It substantiates the keydoaj:2fb58247865d4b07b3e329b87a41cde7 fatcat:e5qxuw677zgzlj56gwu57onzkq