Machine building plays one of the key roles in ensuring of the economy development on an innovative basis. The synergy of enterprises within clusters in the region allows them to use their potential more effectively. For the region, clusters serve as catalysts for economic growth.
The aim of the article is to establish trends in the development of machine building in Ukraine and to identify the preconditions for the development of appropriate clusters in the regions.
General and special methods of scientific knowledge constitute the methodological basis of the study. In particular, the statistical method is used to reflect the results of scientific research on the identification of modern trends in the development of machine building in Ukraine. The cartographic method, methods of comparative analysis, synthesis and grouping are used as the basis for determining the localization of machine building in the regions of Ukraine. The methods of cause-effect relationships were used to study the prospects of the development of machine building clusters in the regions of Ukraine.
On the basis of the analysis of the dynamics of machine building development in Ukraine during 2010-2016 the following was found: the number of machine building enterprises and the number of employed workers steadily reduced; volumes of industrial production of machine building mostly increased, the share of loss-making enterprises declined. More than a tenth part of the cost of innovation goes to machine building. Enterprises of this kind of activity implemented almost half of innovation processes and the fourth part of a new innovative product in the Ukrainian industry. Military aggression by the Russian Federation has made significant adjustments in the dynamics of machine building development in Ukraine.
The study of the efficiency of the activity of machine building enterprises in Ukraine has established that despite the growth in the profitability of operating activities in the last year, the actual efficiency of enterprises of this type of activity is close to the point of break-even. During the analysed period, the labour productivity in machine building grew. However, this dynamics is due to a steady reduction in the number of employed in machine building, rather than an intensive increase in sales volumes.
The indicator of localization by volume of sold industrial products is used to identify regions of Ukraine, in which machine building is one of the main industrial sectors. It was established that machine building is the industry profile sphere in 45.8% of the Ukrainian regions. The existence of machine building clusters in the regions of Ukraine is analysed. The author has defined regions with prerequisites for the creation of machine-building clusters and key directions by the machine building types for these clusters based on localization indicators.
The obtained results of the research can serve as a scientific and analytical basis for the state authorities to make appropriate decisions on the formation of machine-building clusters in the regions of Ukraine.
Further studies will be used to include spatial analysis of clusterization of Ukrainian regions by types of economic activity. 

spatial organization of business, cluster, innovation, competitiveness, cooperation, machine-building enterprises 

Generalization of the theoretical approaches to determination of key concepts of innovative activity management is carried out. The list of management elements, which require continuous monitoring of the enterprise innovative activity efficiency maintenance, is defined. The double contour scheme of acceptance and realization of administrative decisions in the field of innovative activity is offered. 

innovation, innovative activity, innovative development, innovative potential, controlling, controlling of innovative activity