STRATEGY OF FORMATION OF REGIONAL COMPETITIVE ADVANTAGES: ANALYSIS AND ELEMENTS OF FORMATION

Abstract

The article identifies the need for structural change as a priority area of regional economic policy, which is determined not only by the level of accumulated research potential in the region, but also the depth of the economic challenges it faces. It is determined that the strongest incentives for socio-economic transformations arise in economically disadvantaged regions, especially in periods of global economic instability. The transition to building a new economic system in the regions is the most effective for overcoming their subsidies and weak dynamics of regional gross domestic product. The peculiarities of the formation of regional gross value added in Ukraine and the output of regional products and services in the basic prices of economic activities in the total area of the region were studied. The analysis showed that the existence of strong market incentives for innovation is an important factor in technological and economic progress. Such market incentives arise primarily as a result of increasing resource constraints (associated not only with a lack of resources, but also with rising prices for them), with the emergence of new aggressive competitors in the traditional for the country and its regions. Economic growth is really sustainable only when it is accompanied by a process of qualitative improvement in the structure of the economy. In this sense, only the economic growth that takes place simultaneously with the process of economic development is qualitative, sustainable and reflects the positive dynamics of the evolutionary development of the national economic system. It is proved that the manifestation of market incentives not only «pushes» national enterprises beyond the already mastered production and technological activities, makes the transition to innovation an important condition for their survival in the market, but also shows the direction of concentration and even joint efforts of all national actors to overcome them. It is proved that when forming a new, more progressive approach to regional development instead of the factor «investment» the main, dominant factor of economic growth is the factor «technological innovation» and this radically changes the whole paradigm of economic development of the region and the country as a whole.