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Municipal units and innovation development

The study analyses the development problems of small cities and rural municipalities in the context of transition to the innovation development of economy. Since many of Russian rural municipalities are not yet fully industrialized, the innovations must take place first of all in governance which, in its turn, could stimulate technological modernization of traditional sectors and the development of regional clusters where municipal units may yield the advantages they have and thus have higher competitiveness.

Marshalova A. S. [email protected]/ru

Novoselov A. S. [email protected]

Keywords: depressed area municipal units peculiarities of regional reproduction processes competitiveness Paretto’s optimum innovation policy