Page 72 - Theoretical and Practical Interpretation of Investment Attractiveness

In our view, endogenous factors are critical to ensuring the economic development of
regions. However, it is also necessary to consider the geographical positioning of regions and
not to overlook their geo-economic placement.
In recent years, scholars have been conducting studies on the development of regions
based on their geographical and contextual conditions, often referred to as the "spatial (phase)
potential of regions." V.P. Efimov emphasized that "if the development of regions is based
on the integration of existing resources into spatial and regional clusters, it will yield
economic and social benefits."
Furthermore, scholars suggest modern approaches to ensure regional development,
such as clustering to promote economic diversification, enhancing internal connections and
infrastructure, optimizing the utilization of local resources, and improving the efficiency of
social labor distribution. Moreover, it is important to support the comprehensive development
of national infrastructure, strengthen the system of produced chains, and direct internal
resources toward this sector to ensure the prosperity of residents and the sustainable
development of the economy.
A.A. Zinovyeva, emphasizing the importance of regional development, identifies
subjective and objective factors. Among the objective factors are natural geographical
differences, the availability of economic resources, technological aspects of regions, and
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economic diversity .
The second factor includes institutional, infrastructural, and organizational-functional
determinants; local customs and traditions; and existing major corporate structures.
In analyzing the differentiation between "central housing" and "housing far from the
center" in the area (district, city, town-type settlements, villages – our explanation), if we
consider this as a clustering, then, for a while, it emphasizes the emergence of a complete
economic entity due to the disappearance of differences between them.
The logical continuation of these studies will be presented in the following paragraphs,
focusing on innovative capabilities.

If the sun sets, it will rise again tomorrow. J. Milton.

2.2. Methodological issues of defining innovative efficiency
Ensuring the economic development of regions and countries, various sectors'
innovative orientation, and programs developed in this regard serve as the basis. The global
financial and economic crisis that has affected countries worldwide has drawn attentio n to
ensuring national security, particularly ensuring the stability of regional and local economies,
their sustainable development without social upheavals and sharp disparities. Accordingly,
the strategy aimed at overcoming the negative consequences of withdrawing territories and

96 Zinovyeva, A.A. (2011). Economic Problems of Regions and Industrial Complexes. Problems of Modern Economics,
4.

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