Abstract
The ways of reorganization of local self-government and territorial organization of power on the basis of decentralization are investigated. Ways to improve the tools of state support for the development of united territorial communities and methods of finding innovative approaches to ensure their sustainable development and modernization of the regional economy are identified. The ways and methods of state regulation of decentralization processes with the selection of problem situations are critically analyzed. The international experience in solving the issue of reforming local self-government and territorial organization of power is studied. It is proved that the innovative approach to the modernization of the regional economy, which contributes to the sustainable development of territorial communities and regions, is the development of the bioeconomy. The close relationship between the bioeconomy and the circular economy is substantiated. The expediency of providing local governments with the provision of quality public services and the formation of a strong policy direction for the revitalization of the bioeconomy with the involvement of international technical assistance programs and qualified experts is substantiated.
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