Region Innovation Potential as a Factor of Sustainable Development

Abstract

The article deals with the theoretical and practical issues of innovation activity as a factor of economic development and its sustainability. It reveals that economic instability can affect the investment climate, as well as cause significant slowdown of the innovation process. It points out the differences in adaptation processes in regions, which are reflected in the pace and direction of innovation implementation. An assessment of the innovation potential of a resource-type region was carried out based on indicative method and a set of criteria which were divided into five groups. The groups are formed according to scientific, technical, personnel, financial and resulting components. The analysis revealed that the resulting component is in a pre-crisis state, which is determined by the small number of active enterprises introducing innovation technologies and a small share of innovative products. It was noted that the technical and personnel components are in a normal state, and the financial component is in the state of crisis. It was concluded that there exists a sufficiently high innovation potential in the basic sectors of the industrial region. The debatable results of any assessments of the innovation potential and its impact on the sustainability of socio-economic development are underlined.