INNOVATIVE DRIVERS OF SUSTAINABLE DEVELOPMENT OF TERRITORIAL COMMUNITIES: INSTITUTIONAL AND ECONOMIC MECHANISMS AND ASSESSMENT TOOLS
Abstract
The article explores innovative drivers of sustainable development of territorial communities in the context of strengthening their economic capacity and increasing resilience to contemporary structural and digital transformation challenges. The study substantiates the role of institutional and economic mechanisms in activating local economic potential, with particular emphasis on strategic planning, digitalization of public administration, development of innovation infrastructure, cluster initiatives, and public–private partnerships as key determinants of long-term community growth. Based on a synthesis of the concepts of sustainable development, endogenous growth theory, and place-based development, an integrated model of innovative development of territorial communities is proposed. The model combines institutional, technological, economic, and social dimensions and reflects the systemic interaction of governance quality, digital maturity, investment activity, and human capital formation. It demonstrates that the balanced integration of these components creates a synergistic effect that enhances local competitiveness and supports sustainable economic dynamics. To strengthen analytical support for strategic decision-making at the local level, an economic and mathematical toolkit for assessing the innovative capacity of territorial communities is developed. The proposed integrated innovation development index is constructed using a multi-factor approach based on indicator normalization, aggregation of sub-indices, and weighting coefficients reflecting strategic development priorities. This assessment tool enables comparative analysis of territorial communities, identification of development gaps, and monitoring of innovation dynamics over time. The practical significance of the research lies in the applicability of the proposed institutional and economic mechanisms and assessment tools for local governments in formulating evidence-based development strategies, optimizing resource allocation, improving investment attractiveness, and enhancing the overall sustainability and economic resilience of territorial communities.
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