Page 79 - Theoretical and Practical Interpretation of Investment Attractiveness

the development of infrastructure. In the active method, the main emphasis is placed on the
incentive function existing in the area to ensure the resulting (quantitative and qualitative)
indicators (Figure 2.2.3).
Under the innovation potential (country, region, sector, enterprise economy), the
potential of the regional socio-economic system to move to a new state designed to meet the
existing or emerging needs of the territorial subjects (consumer, executive authority subject,
subject-innovator, market, etc.) should be considered.
Regional economic policy depends on the innovative potential of the region, which, in
turn, predetermines the future socio-economic development of the region. The socio-
economic development of the region can be based on three sources:
production factors (extensive type of growth);
investments (medium level of development, extensive-economic type of growth);
innovation (high level, intensive type of economic growth).
Each region simultaneously uses three sources of this development, and, as a rule, since
one of them is considered stable, regions can be classified according to the level and quality
of economic growth.

Fig. 2.2.3. Composition of the territory's innovative competence 116

In modern conditions of global competition, the priorities and actions of the executive
branch should be aimed at innovative development, rapid and sustainable development of the
economy, and intensification of innovation activity in existing areas of scientific potential.
Researching the source of innovative development is a complex problem that requires
analysis and synthesis of the emerging innovative potential of the region, which, in turn,
reflects the potential of this development. Instead, assessing innovation potential is becoming
increasingly important.

116 A.I. Prigogine. Innovation: Incentives and Obstacles. Monograph. Moscow: Politizdat, 1998.
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