SCIENTIFIC AND THEORETICAL BASIS OF DEVELOPING INVESTMENT CAPACITY FOR INNOVATION AT THE REGIONAL LEVEL

These analyses show that the availability or volume of investment resources is not a sufficient condition for ensuring the innovative and investment development of the region. The quality and effectiveness of institutional and organizational mechanisms come into play as the main decisive factor. According to modern economic theories, innovative and investment development is considered a system that relies not on resources, but on the institutions and management mechanisms that activate them. From this point of view, ensuring regional innovative and investment development is manifested in dependence on the institutional environment, organizational structures and their coordinated activities. Institutional mechanisms form the “rules field” of innovative and investment development. They include a complex of legal, financial, fiscal and administrative institutions and serve to ensure confidence, stability and predictability in making investment decisions. As noted in the previous paragraph, corruption, legal instability and bureaucratic obstacles are the main factors that reduce investment activity. Therefore, the main task of institutional mechanisms is to minimize these institutional risks.