innovation process presents itself as a process of creating and spreading innovations and consists of three components: (1) innovation as a new idea, knowledge, a result of research; (2) introduction of innovations in practical activities; (3) diffusion of innovation, through products, services or technology in new places and conditions.
     The analysis of the situation in the Central Asia and Caucasus (CAC) region as a whole has shown that countries follow principally new policy reforms in the process of transition to market economy. The innovation development in the region is through creating national innovation systems in all sectors including agriculture. The national agricultural innovation system (NAIS) is a collection of legal and economic aspects involving research innovation, their introduction, dissemination, use and realization into national policy. The system (NAIS) is based on close-fitting intercoupling data. These processes reflected the development of agriculture as a whole and the breakup of the old centrally planned economic relationships. They have brought about a sharp decline in production of agricultural products. When structural reforms are completed, the economic situation will be normalized.
     What are the reasons behind economic dependency on agricultural development? The economic dependency of the CAC countries on agriculture is primarily for food security as well as inputs for processing industries and employment for rural population. The well-being of nearly half of the population depends on agriculture in the countries of CAC. Climate and environmental conditions favor agricultural development. Efficient agricultural innovation systems are a guarantee for the economic growth

and stability of agricultural development. This was also experienced by the developed countries. Similar processes exist in the countries of eastern Europe, where these processes started early. The process of reform and restructuring were reflected in the innovative sphere of agriculture first of all.
     The previous command system affected all areas of innovation systems. In education, the study and introduction of production scientific research achievements was introduced through planned command. The enormous facilities financed scientific institutions according to the plan made for developing the science. However, due to a lack of working mechanisms for introducing these actions appropriately and adequately with respect to the desire and interest of the producers, many achievements did not find any use-even though many of them received patents. The coefficients of success of their introduction and returns were occasionally reduced to zero. The chief thing was to report.
     Today the situation and incumbent relations have changed, but problems have not decreased. For example, system competitive grants are present in nearly every country. Their principles are competition, priority setting, urgency, usefulness, cost performance, etc. Specific approaches are employed: (1) selecting the best innovation projects for introducing farming facilities; (2) building on the readiness of today's farmers to introduce innovations by undergoing the necessary process of education and consultation; and (3) introducing the proposed innovation project to confident farmers and other agricultural commodity producers
in case the project realizes.