The article substantiates the concept of developing a strategy for the sustainable development of an industrial enterprise on an innovative basis. The grouping of the development processes of production enterprises was carried out. In economic systems, a stable (simple reproduction), expanded and narrowed type of development is distinguished, which is determined by the nature of changes in the parameters of the enterprise's functioning. Characteristics of types of enterprise development are presented in the article. At the same time, development is synonymous with quantitative growth. Growth from the perspective of portfolio analysis can be horizontal (family and horizontal diversification), vertical (forward and backward integration along the logistics chain) and diversified (conglomerate diversification). The transition to the informational post-industrial society, the knowledge economy, which is accompanied by an increase in the instability of the environment, determine the urgency of developing new concepts for managing the development of enterprises. It seems that the theoretical and methodological principles of enterprise development management should be a synthesis of traditional economic approaches and achievements of natural and humanitarian disciplines, integration of organizational and economic areas of knowledge. The concept of forming a strategy for the sustainable development of an industrial enterprise on an innovative basis is presented. After analyzing various approaches to defining the company's strategy, the article concludes that the strategy is a set of measures to develop a way to achieve the goal, that is, in connection with our research, achieving sustainable development of an industrial enterprise on an innovative basis. The principles of forming the strategy of sustainable industrial development of enterprises on an innovative basis are formulated: the principle of innovativeness, the principle of complexity and systematicity, the principle of accounting for static and dynamic indicators of sustainable development, the principle of scientific validity, the program-target principle, the principle of efficiency, the principle of adaptation, the principle of monitoring and control. The use of the proposed principles makes it possible to increase the effectiveness of management decisions in the formation and implementation of the strategy of sustainable development of an industrial enterprise on an innovative basis.