Abstract: The study is devoted to development of conceptual approach to organization of innovations and innovative work. It formulates functions of business management based on innovations, points out features of innovative work. The study grounds proposed principles, approaches and functions substantiated and defines the innovative favorableness of the structure for different types of innovations. The approach was formulated to determine special features of innovative work in conditions of knowledge economy. Classification of innovations according to the following characteristics: by the novelty level (basic, progressive, pseudo-innovations), by the degree of radicality (radical, ordinary), by the life cycle stages, by the degree of influence on the changes (cardinal, revolutionary, modificative, combined) was carried. The study proposes systematic approach to innovation that allows consideration of static aspect (novation, innovation or change) that reflects the essence of innovation and dynamic aspect (process that reflects the process of commercialization and promotion of innovation. Methodology of innovation management was proposed to consider on basis of comprehensive approach, including strategic, operational and organizational subsystems and the process approach for organization of all flows of the system. The innovative favorableness of the organizational structure determined for the types of innovation that exist an enterprise: project and matrix structures for the revolutionary, basic, modificative, comprehensive innovations; linear-functional structure for pseudo-innovations, ordinary innovations.