Assessment of The Innovative and Investment Potential for Business Development

Abstract

The implementation of innovations and investments is an important condition for business development in the region. Creating a favorable investment climate for entrepreneurs will contribute to the stable functioning and development of the region’s economy. The authors propose a methodology for assessing the innovation and investment potential of municipalities in a particular region. The methodology is based on the analysis of statistical indicators in five groups: production and finance, labor, infrastructure, investment and social sphere. The main stages of the methodology are: 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 and compare the complex indicator with a data base, which uses the average indicators of the region. The paper considers the structure of the complex indicator proposed for assessing the innovative and investment potential of the territories. A comparison of territories according to a comprehensive indicator of the innovative and investment potential made it possible to identify the most vulnerable areas where measures must be taken to ensure an innovative and investment development in order to develop the economy of the region.