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On the basis of the system analysis of the implementation in the Concept for the development of the national innovation system, developed and approved by the Cabinet of Ministers of Ukraine in 2009, it is stated that its efficiency is rather low. It is established that the main reason for this is inconsistent and low effectiveness of state, educational, scientific and innovation policy. It is proved that Ukraine needs today a new systemic innovation development strategy that should combine the efforts of power, business, education, science and become a guarantor of dialogue between them. The place and role of the educational-scientific subsystem in the national strategy of innovation development are outlined and the main problems of higher education and vocational education in the context of the training of innovative-oriented specialists are identified. It is substantiated that domestic education, in particular, higher education, can become the most important indicator of the quality of life in society, react effectively to exponential technologies and promote technological change in the business environment by making five radical steps. Realizing them, Ukrainian society has a chance in the medium term to ensure the introduction of the latest innovative technologies and to become significantly closer to the level and way of organizing the life of developed countries.

The article analyses the current trends in provision of higher education graduates with employment in the labour market in the European Union by looking into the inter-related issues: the modernization of higher education to the market economy needs, effective measures for providing higher education graduates with employment in the labour market in the European Union, the experience of the European Union. The research is based on theoretical literature review of the existing materials available on this problem. Mainly, they are the EU legal documents and researches of the European scholars. It summarizes the European experience of taking effective measures to provide employment for graduates with higher education. The research is based on a theoretical analysis of authentic sources: the EU strategies, reports to the European Commission and publications of European researchers. The concept of the study is based on the principles of comparative, systemic, holistic, cultural, interdisciplinary approaches, as well as pedagogical forecasting. The article concludes with recommendations for the Ukrainian Government, the institutions of higher education, participants of the educational process. The recommendations are developed to harmonize higher education interaction with the national labour market, taking into account the experience of the European Union on this issue.