Complex assessment of the level and dynamics of innovative capacity of region

The aim of the article is to describe the approach to the assessment of the innovative capacity of the region based on the creation of complex index and study its dynamics in order to develop practical recommendations to enhance innovative activity.The results of the analysis. Innovative development of economy determines the need for formation of an effective innovative policy at regional level, the implementation of which is aimed to set priorities and conceptual basis of innovative regional activity. One of the urgent tasks, the solution of which contributes to the goal, is to assess innovative capacity of the region. The results of the assessment of innovative development of Khmelnytskyi region for the period 2009-2014 on the main indicators of innovation show that the costs for execution of scientific and technical activity by research institutions of region in general tended to increase. The number of institutions involved for research and the total number of scientific staff are incremented, but in 2014 the figure dropped slightly. Funding research activity was increasing every year. Herewith, the main part of funds stands out for applied research. However, the relative share of enterprises engaged in innovative activities generally decreased, and compared to 2011 reduced by almost half. A similar pattern occurred for the firms which implement innovations. There is decrement of the share of innovative products in industrial production. Own sources of investment are dominated in the structure of expenditure on innovation activities of enterprises of Khmelnytskyi region. The reasons of this situation are the state of political instability in the country, that increase the risk of innovative activity; uncertainty in long-term credits and high bank rates; reduction in state funding innovation and lack of own funds of enterprises, lack of public procurement and state guarantees against the risk of bankruptcy for the used bank loans to innovation, weakening of relationships between science and industry. Results of the complex assessment of innovative capacity of Khmelnytskyi region showed that the highest value took place in 2014. Assessment of statistical relationship between the values of the integral index of innovative capacity and gross regional product showed a high density. On the other hand, the relationship between the level of innovative capacity and indicators of the introduction of innovative products is very weak.Conclusions and directions of further researches. To improve the situation needed government support of innovation, which should be done by identifying and supporting innovation priorities on national, sectoral, regional levels, shaping and implementing national, regional and local innovative programmes, financial support for the implementation of innovative projects, improving the regulatory base, developing economic mechanisms to support and stimulate innovation, providing preferential loans and taxation, creating of innovation infrastructure at universities, improving the structure of sub-sectors of the economy through innovative products with market demand. Further studies will be aimed at a comprehensive assessment of the innovative capacity of Khmelnytskyi region with identification of its place among other regions of Ukraine, developing recommendations for the establishment of mechanisms to encourage innovation.