Urgency of the research. The article covers the procedure of formation and implementation of organizational and economic mechanism of innovative network structures in engineering complex of Ukraine. The common issues of clustering are characterized. The stages of clustering are provided. The Realities of today are considered, where the objective need is a transition to a new organizational forms of interaction of industrial innovation structures in engineering activities, the most effective of which is the cluster approach. Target setting. It's indicated that the mechanism of formation and functioning of innovative engineering cluster developed by authors appears due to difficult economic situation in the country. Cluster associations and the role of the Coordinating Council to manage innovative machine-building cluster summary are detailed. Actual scientific researches and issues analysis.
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