Importance Theoretical rationale and methodological study of the concept of managing the innovative development of integrated units rest on the systems approach, implementation of a nonlinear model of innovation, and transformation of the knowledge economy essence based on the shift of the value added center from production to design, which is essential for country's development at micro-and meso-levels. Objectives The aim is to develop a theoretical basis and concept of managing the innovative development of integrated entities considering the key factors of modern economics: the systems approach, nonlinearity and transformation of the knowledge economy essence. Methods We draw on the methods of system and situational analyses, knowledge economy, the triple helix concept, and the theory of integrated systems and innovative development nonlinearity. Results The proposed conceptual approach to creating a modern model for managing the innovative development of integrated entities based on traditional and non-traditional key factors can be applied in practice. Conclusions The revealed properties of innovation processes in integrated entities of the modern economy form a basis of the mathematical model reflecting the nonlinear innovation environment. One of the key factors of innovative development of the science-intensive sector of the modern economy is the transformation of the knowledge economy essence. The transformation concept rests on two premises: dependence of the political and social world structure on the new industrial reality, i.e. the third industrial revolution; the industrialization's key feature is the shifted center of value added from manufacture to design at micro-and meso-levels.
Keywords: integrated unit, innovation, consistency, nonlinearity, knowledge economy
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