Introduction. To assess the efficiency of the state policy on the support and development of small innovative business, a corresponding system of evaluation indicators and indices should be designed. To solve this problem, the paper proposes a number of new indicators to characterize the innovative activity of small business on the basis of the expense–output indicator ratio of innovation activity and the dynamics of these indicators. Theoretical analysis. The formation of an effective national innovation system is impossible without solving the most urgent problems of ensuring a sufficient level and rate of the development of small innovative business. Significant efforts from the authorities, business, and society are made towards its development and comprehensive support in the innovation-developed countries. Methods. Special monitoring of the innovation activity of small business is carried out in the Russian Federation. Commercial organizations being subjects of small business are to submit Form 2-MP, regardless of the kind of ownership of every business entity. The determining criteria are the number of employees and the fixed capital structure. Results. A new approach to the innovation activity evaluation of small and medium businesses at both macrolevel and mesolevel is proposed in the paper on the basis of comparison of the rates of change of the resulting indicators of the innovative activity of enterprises with the rate of change of indicators of the expenses for innovative activities. Conclusions: the approach developed allows evaluating the impact of the state’s efforts of increasing the innovative activity of small and medium businesses in its dynamics.