modernization of economy

Introduction: In modern conditions, modernization of the Russian economy is of great importance. For this, it is necessary to perform categorical analysis of the concepts of “modernization” and “neo-industrialization” and to show their relationship. This determines the relevance of this research. Results: Modernization is characterized as a transition stage from one state of a system to another one, higher and better. It is carried out on the basis of neo-industrialization. The factors to hinder this neo-industrialization are: an inefficient structure of the economy and an unfavorable business climate. Spot and frontal modernizations are types of the modernization of the economy. Discussion: Neo-industrialization is understood as frontal modernization. It would require huge investments and should act as a basis of modernization. Elements of the technological basis get accelerated development in the neo-industrialization economy. Complex regularities of neo-industrialization as “innovative modernization” acquire dominating importance.