Abstract <p>The impact of innovation on technological development of industrial enterprises is considered. The key factors contributing to innovation, as well as their impact on productivity, competitiveness, and sustainability of enterprises, are analyzed. The role of investments in research and development, as well as the conditions required for innovative processes to be successfully implemented in various industries, are evaluated. Innovation plays a key role in maintaining technological development of industrial enterprises, ensuring their agility, increasing efficiency and sustainability in a competitive environment. The <i>research procedure and methods</i> include a set of approaches that allow for a comprehensive evaluation of the impact of innovation on technological development of industrial enterprises. Analytical review and comparative analysis, simulation and scenario forecasting are the principal research methods. Using these methods together, one can obtain a full-fledged picture of the impact. Studying the impact of innovation on technological development of industrial enterprises helps identify key areas for improving competitiveness, sustainability, and agility and form efficient and innovative business practices that meet the requirements of the times.</p>