The article analyses the basic aspects of technological and innovation development. The history and present state of understanding of the technology is discussed both in general and economically in particular. Hard and soft technologies are distinguished between. The categorization of production factors is characterized from the view of technology development, and so are transfer and diffusion of technology, and sustainable technology development. The concept of innovation and intra- and extra-enterprise sources of innovation are dealt with. By the way of conclusion, technological and innovation policies and their development stages are analysed.