The strategy of developing and strengthening the competitiveness of the municipality

The article offers the methodical approach of developing the concept of longterm innovative development of the municipality. The author has developed recommendations on the formation of innovative strategy of the municipality on the basis of active technology forecasting (foresight), which allows to define the desired future socio-economic development of the territory through the use of innovative potential, to identify potential consumers of innovative products, to align the strategic interests of science, business and local community. Recommendations provide communication of municipal programs of innovative development with the regional strategy. The technique of estimation of innovative potential of the territory, based on the indicators of innovative activity and innovative usceptibility is substantiated. The methodology enables the classification of municipalities and justifies the choice of innovation strategy. The author presents recommendations on formation of innovative programs of the municipality and the establishment of an institutional mechanism for the implementation of the program. New mechanisms for financing innovation activities from the budget of implementing the innovative program, which includes municipal innovation Fund and the municipal venture innovation Fund, are proposed.