The specificity of agricultural production and its innovative development, which is connected with biological factors of production and the slowness of change and achievement of the desired characteristics of soil fertility, plant and animal species and their performance, is considered. In the agricultural sector innovations are complex, and in the production process they predetermine an industry impact on agricultural production, processing industry and infrastructure. The analysis of innovative development of agricultural production in the world is conducted according to two models: stimulation of the demand for innovation, which provides increased environmental requirements for agricultural production; and implementation of the innovative strategy of agricultural intensification.
In Ukraine agrarian investments associated with the use of scientific research aimed at intensification of agricultural production, increasing export, providing economic efficiency in food production and competitiveness on world agrarian products markets. In terms of the lack of attention to the preservation of soil fertility and compliance of scientific grounded standards of crop rotation, innovative processes don’t have a systematic character and have the target orientation to the agricultural productivity increase on condition of the lack of attention to environmental protection and product quality issues. Regional innovation system of the agricultural sector is considered from the standpoint of integrated open system that interacts with social institutions and organizations engaged in converting scientific knowledge into new kinds of technologies, energy saving techniques, competitive products with the aim to support socio-economic development of the region. Agriculture, despite its dynamic and controversial development, in comparison with developed European countries, shows low efficiency, which in its turn does not allow adequate funding and creating agrarian innovations of the world level.
Stimulation of innovative processes and their funding in the agricultural sector should be implemented in the directions that ensure the transformation of agriculture into a dynamic, balanced and adaptive system capable to continuous self-renewal in process of the complication of general conditions of environmental and economic development, and climate change. The necessity of transition to the system of comprehensive support and stimulation of innovations is indicated.
Priority tasks of increasing efficiency of agrarian sector are supposed, in particular creation of favorable financial, economic and legal conditions for the formation of the national innovation system, based on the approach of the stimulation of the demand for innovations and its successful development. 

innovation, funding, agrarian sector, innovative development, strategy