The reasearch focuses on the theoretical aspects of competitiveness in the economy and the methodology of its assessment. The following issues are also covered: the institutional system role in competitiveness support, institutional system subsystems and certain components. The research offers a specialised focus on the analysis of a number of key legal and regulatory documents that determine the shape of the institutional environment and ensure the formation and functioning of the organisational and managerial mechanism of Russia's innovative development, at whose core is the national innovative system. Special attention is paid to foreign experience (as exemplified by Finland) of innovative development of the economic system and to the industry aspect (as exemplified by Russian electrical power engineering). Separate priority areas for advancement and increasing efficiency of the organisational and managerial mechanism that ensures the competitiveness of Russia's innovative system are identified.