Institutional Environment For Innovation Development Of Ukrainian Regions

The article examines methodological and practical principles of creation of modern regional innovative system (RIS) that is institutional framework, conducive for innovations. It organically combines all components of the innovative process (science, education, system of financing of scientific research and research and development (R&D), system of commercialization and intellectual property protection and others). The article reveals the reasons that hinder the innovative factor that is important in raising of regional economy competitiveness. These reasons: lack of demand for innovation (as the Ukrainian economy in its current state does not form an active interest of most businesses in scientific research, or the businesses cannot effectively use innovation); absence of institutions that provide the innovative economy functioning in all its components (organization and management of development; its financing, marketing, commercialization and oth.); low solvency of people that generates inability to pay higher prices for higher quality products; a small number of highly skilled professionals able to work in the innovation sector and in high-tech manufacturing; absence of an effective and coordinated not only regional but also national industrial and innovation policy. The author proposes to implement new organizational forms (organizational platforms), to implement innovative priorities that should be based on the effective separation (redistribution) of authority on the use of instruments of regional policy; that is to reinforce concrete management functions by the necessary legal statuses and resources. The author argues that the execution of the agreements should be one of the key problems of the Ukrainian regional policy and should become a subject of legal regulation and the object of attention from various social and political institutions.