Page 78 - Theoretical and Practical Interpretation of Investment Attractiveness

It should be considered that once an invention is introduced, it is not feasible to get
economic outcomes quickly since the innovation has a high capital capacity during its
introduction stage and a large capital savings during its exploitation stage.
After all, the availability of regional conditions and investment funds are required for
the implementation of innovative projects and their implementation in our economic and
social life. Today, large amounts of money are directed by corporations to science and the
discovery of new inventions. The policy of corporations in order to achieve higher profits in
the future and increase competitiveness is the only pledge of their efforts to maintain their
position (image) and in its place is to create modern technologies that provide high
productivity ahead of competitors.
Innovation is the result of the transformation of ideas that occurs in the process of
reproduction of the economy and is interpreted as research, development, new or improved
scientific-technical, socio-economic, political and management decisions.
Viewing innovation as a product of the innovation process in place of "producer" and
"consumer" in regional markets makes the analysis much easier.
For this purpose, it is scientifically and methodologically correct to illuminate the
concept of "innovative potential" and to use it widely in evaluating the socio-economic
development of regions. For a detailed interpretation of the "innovative potential" category,
we present the following basic views:
1. Innovative potential is a sum of scientific, intellectual, creative and scientific
technical inventions;
2. Viewing the innovative potential as available resources that ensure the
implementation of innovative activities;
3. Innovative potential - new opportunities that serve to ensure efficient use of
resources in the implementation of innovation;
4. An integrated view of innovative potential - the current value of resources and the
possibility of using them;
5. To see innovative potential as the readiness and ability of an economic entity capable
of carrying out innovative activities.
Many regional scholars recommend studying the development of the region in two
parts. These are: all the conditions and opportunities available in the area for the transition to
innovative development; the second is the capabilities of economic entities capable of
activating innovative activity 115 .
In our opinion, the basis of the innovative development of regions is the quantitative
and qualitative change (increase) of socio-economic indicators as a result of effective use of
available resources. Performance indicators can be provided in passive (existing conditions
for the development of innovation) or active (motivation and initiative to create innovations)
methods.
The passive method is determined by the use of benefits granted by the state, mutually
beneficial cooperation between the state and business, the legal framework, tax benefits, and

115 D.I. Kokurin. Innovation Activity: A Textbook. Moscow: Exam, 2003. 111 p.
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