New Economic Geography as the Theoretical Platform of Region Innovative Development

Abstract

The article shows the evolution of the policy of innovative development of the regional economy in recent decades. Particular attention is paid to industrial and technological component of the theory of New economic geography and justification of the growing role of institutional factors in the innovative development of the regions. Based on the analysis of the main ideas of the theory of Nobel laureate Paul Krugman, the author identifies the base institutional factors of competitiveness policy of the regional economy in the 21st century. The directions of this policy in the technology developed countries are: support of cooperation system of all levels and subsystems of national innovative system; strengthening of institutes of innovative economy, including support of the competition and improvement of intellectual property protection system, partnership of the government, the regional authorities and a business sector in implementation of innovative programs and projects.

DOI: 10.5901/mjss.2015.v6n3s5p19