Modern industrial enterprises are interested in the production and implementation of innovations in various forms, as innovations, regardless of type, allow them to increase their competitiveness by reducing production costs or ensuring a monopoly position in the market. In turn, the effectiveness of innovation activity is largely determined by the state of the organizational and management structures of the enterprise, which should be focused on effective decision-making in the implementation of digital technologies. The aim of the research is to study the essence, principles and opportunities of using digital twin technology to manage the innovation activities of industrial enterprises in Russia, taking into account the accumulated best international practices. The objectives of the study are: assessment of the current state of innovation activity of industrial systems in the international aspect; characterization of digital twin technology to substantiate its role in improving the efficiency of innovation management of manufacturing enterprises; formation of the authors’ concept of innovation management of industrial systems based on digital twin technology. To analyze the material on the stated issues, the authors used such methodological techniques and tools as abstract-logical method, methods of content analysis, behavioral approach, comparative evaluation, generalization, and induction. The study reveals the current state of innovation activity of global industrial systems, defines the role of digital technologies in improving the efficiency of management of innovation activities of business entities. The SWOT-analysis of the process of using digital twins in the innovation activities of industrial enterprises allowed us to identify opportunities and threats to their implementation in the production process. Based on the matrix of digital transformation of economic systems, we identified promising industries driving the progressive development of digital twin technology. The paper proposes the concept of innovation management of industrial systems on the basis of digital twin technology taking into account its functional and innovation management characteristics. The article proves that digital twin technology allows getting information about the properties of a future innovative product faster, reducing the volume of field tests by means of conducting the virtual ones, as well as by using accumulated and analytically processed historical data about the design and operation of similar products. As a rapid prototyping tool, this technology accelerates innovation and reduces the cost of an industrial system. The scientific significance lies in the expansion of theoretical ideas about the approaches to the development of innovation through digital twin technology. The practical significance lies in the formation of methodological foundations for understanding digital twins as a factor that can improve the efficiency of innovation management in industrial enterprises. The prospects for further development of the work are associated with the creation of methods and tools for strategic management of innovation, providing the opportunity to develop and implement digital technologies for the management of innovation activities in the context of uneven development of the digital economy in various industrial sectors of Russia.