REGIONAL ECONOMY AND ITS INNOVATION POTENTIAL
Economic strategy of development of the region is a logical continuation of the ideas embodied in the concept of economic and social development. Its purpose - on the basis of conceptual problems of the region and steps to achieve them, to define the main directions and principles of behavior of authorities, the actual methods and techniques of economic maneuver to achieve the goals and objectives with maximum benefit and minimal economic losses in overcoming the difficulties encountered. Among the means used to achieve the goals to the fore as a condition for the restructuring of the intensification of economic activities and improve production efficiency, accelerate innovation processes and improving the quality of work. The main directions of development and improvement of production is organically linked with the investment policy and its focus on strengthening the role of accumulation in the regional reproduction process. These areas should ensure the development of the region. Under the development of the region it refers to the process of continuous positive changes in his vital signs. Innovative development - it is a process of continuous positive volume and structural changes of states of the region on the basis of the selection and implementation of innovations. The article discusses the relationship and interdependence between the regional economy and innovative development. Innovative development seems to be from this position, as a process of continuous positive volume and structural changes in the status of the region based on the selection and implementation of innovations.