The study aims at analyzing the innovation activity of the Russian Federation as the main need for the formation and development of the knowledge economy. At present, the development of social and economic processes largely depends on the welfare of society and the observance of national interests, including technological and intellectual sovereignty. In this article, the authors have analyzed the key functions of innovation that affect the socio-technological development and formation of the knowledge economy. The socio-technological development and formation of the knowledge economy are based on interaction with the higher education system. The article emphasizes the role of educational innovations in the formation of the knowledge economy and determines the need to modernize the existing education system. The authors have concluded that the basis of the modern knowledge economy is high-quality education, which is assigned a priority role since it builds a new type of society in which the driving force of the economy should be the competition of knowledge.