Paper demonstrates how socialization and social innovations spread the social interaction of business and the state, based on the statement that socialization is functionally seen as a way to achieve a balance between competition, which forms actions to obtain higher business results, and mutual assistance to achieve social unity in the state through socialization. At the heart of competition and mutual assistance is socialization, which strengthens people’s desire to have a better life, which is especially vital for a less orderly society in which the functioning of the state occurs under the phenomenon of social distrust. To achieve the goals of stability in society and to support economic growth, the winners are the triumphers of the national solidarity spirit, achieved through social innovation, which through developing social interaction, creates conditions for sustainable development. Under the current conditions in Ukraine, it should be a matter of finding a balance between interests of the society, the state and the individual, which can be achieved through the social function of the state. This function should not restrict access to public goods, but rather ensure inclusive activities among economic institutions, which will suspend the destruction of social space, reduce inequality and intensify people’s behaviour, socializing their life activities in the social space of the country.
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