Abstract
The work presents innovative development issues in the Forest industry of Irkutsk province. The development of the regional innovation system is suggested for sustainable Forest industry management. The key components of which are technological, product, institutional, and ecological innovations, as well as, innovative entrepreneurship. The main hypothesis stated is the assumption that analysis and evaluation of effectiveness of innovations and institutional changes is an important tool for strategic planning of the innovative development of the Forest industry. The cross-sectional regression models are presented for evaluation of innovations in the Forest industry based on the expert’s opinions, derived via direct questionnaires. The prospective directions of institutional changes in the Forest industry and program of innovative and institutional changes are suggested for implementation.
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