The article is devoted to the analysis of scientific and technical potential and innovative activity of Sevastopol in order to identify the main problems of innovative development of the region. The analysis carried out in the course of the study showed that despite the low performance indicators of scientific and technical and innovative activities in absolute terms, the relative performance indicators for these areas in Sevastopol exceeds the average for Russia, which suggests considerable scientific and technical potential in the region and the feasibility of creating favorable conditions for development of innovative entrepreneurship (the preservation of special economic zones, technoparks and the development of other elements of the innovation infrastructure).
In conclusion, the authors draw conclusions about the key problems in the field of Sevastopol innovative development, which include: limited funding for science, the lack of alternative sources of investment in science in addition to the state budget, various administrative problems associated with the complexity of the organization and doing business, almost complete lack of elements of innovation infrastructure, sanctions and consequent restrictions on international trade and international movement of labor and capital, low level of cooperation between science and production in the region, as well as low entrepreneurial activity and innovative culture of the actively productive population.
Keywords:innovation, innovation activity, scientific-technical activity
JEL-Classification: O31, O32, O33
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