The study of the theoretical aspects of the development of innovative business has proved that the most effective form of innovative business, which can create and implement the final product, is a startup. The environment and infrastructure of a startup form its ecosystem. An innovation ecosystem includes economic agents, as well as an innovation environment consisting of ideas, rules of the game, social interactions, and culture. The state of the innovative business and the startup ecosystem of Ukraine behind its main components and institutions are analyzed, and the factors of the development of the startup ecosystem for its competitiveness among the world are determined. Government measures and initiatives should promote the emergence of a community of startup founders who will work closely with other actors in the private sector of the economy and the public sector. At the same time, the state should not assume the role of a leader, but only an initiator.