Innovation and Investment Potential of Regions as a Vector for Their Development in the 21st Century

Abstract

The activation of innovation and investment initiatives is a necessary condition for stable functioning and progressive development of the country’s economy. The paper discusses a new methodology for assessing the innovation and investment potential of municipalities in the region. This approach uses the analysis of statistical indicators in five groups: production and finance, labor, infrastructure, investment, social sphere. The main stages of methodology: to identify indicators that characterize the innovation and investment potential; determine the indicator’s value for each municipality; to assess a complex indicator of the territory’s potential; compare the complex indicator with data base, which uses the average indicators of the region. The paper considers the structure of the complex indicator proposed for assessing innovative and investment potential of the territories. Due to the polarization of social and economic space of the region, it is of vital importance to classify municipal formations according to the type of pursued social and economic policy and the prerequisites for innovative development. It is necessary to use the analysis of innovative and investment potential in the activities of municipal authorities since it allows: to assess the state and readiness of municipalities for innovative reforms; to identify advantages and disadvantages, to forecast the main development trends; to prepare recommendations for the formation of an innovation and investment development strategy.