Introduction. The need for modernization is due to the achievement of the productivity limit within the existing technological order, as well as the systemic crisis of the Russian industry. Theoretical analysis. Based on the semantic analysis of terms, the essential features of the modern stage of modernization transformations were identified: large-scale changes in existing industries under the influence of the “breakthrough” technologies’ use, which will lead to changes in the chains of consumer value creation and the formation of new business models based on platforms; the emergence of new markets, whose members may become counterparties for enterprises of traditional industries; high importance of government initiatives for the implementation of transformations. Modernization beyond industry should affect both state and public institutions. Empirical analysis. Based on the analysis of statistical data, the current state of the Russian industry was assessed. The unevenness of industrial production in the sectoral and regional context was confirmed. On the example of the Sverdlovsk region, it is determined that the regional priority of structural and technological modernization of industry is mechanical engineering. Key areas of machine-building production growth in the region, prospective existing and future markets for the sale of their products, including radio electronics, additive manufacturing, aircraft and shipbuilding, railway technology, space systems, nuclear medicine, photonics, robotics, have been identified. Results. Most of the domestic industrial production corresponds to the third technological order, while developed countries are moving to the sixth. The thesis on the structural degradation of Russian industry, which occurred as a result of the deepening of inefficient specialization in low-tech energy- and resource-intensive industries and the actual loss of certain industries of investment and social importance, was confirmed.