Instruments of Investment Attraction in Order to Fulfill the Structural Priorities of Sustainable Regional Development (Study Based on the Rostov Region)

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JEL Classification Codes: R50, R53, R58. 1. Introduction In order for Rostov region to ensure it competitiveness and sustainable levels of growth, it requires a transition to a new economic model that complies with criteria used in most developed economies of post-industrial type. Only compliance with such criteria will allow the region to further improve competitiveness on national and international levels, as well as ensure sustained economic growth and ability to attract investment funds and achieve investment projects. Transition to a new model will require structural changes of the economy of Rostov region. The primary objective is the transition of regional economy to a whole new level of technological development and formation of non-primary model of postindustrial type with developed export-oriented sectors. In order to achieve these goals, solutions of the following restructuring tasks will be required: --increasing the share of the innovation sector as part of the regional economy; --increasing the share of high-tech production in the economy; --expansion of non-primary sector of the economy; --double effect of modernization (economic and environmental) and increases in energy efficiency via integration of the most up-to-date technology available; --reducing import dependency of the region via development of enterprises engaged in import substitution; --Increasing and developing the tertiary sector including financial and non-financial services. Attainment of the assigned goals and solution of relevant problems require active attraction of additional investment into the implementation of regional structural priorities. At the moment the Rostov region is one of the more attractive investment hubs amongst other areas of Russian Federation, however the current investment volumes are insufficient to solving the underlying tasks. This article presents the analysis of all the instruments and types of interaction between the state and private enterprises starting from financial tools (discounts and subsidies) all the way to more complex forms of cooperation including clustering that provide for increased investment flows and improve socio-economic development of the Rostov region. 2. Theoretical, Informational, Empirical and Methodological Grounds of the Research Theoretical basis of the study used in the article, relies on the fundamental theories of regional economy, governmental management of socio-economic development, state economic regulation policy, that are particularly related to the matters of strategic planning, development of socio-economic priorities, enhancing the attractiveness of the region for foreign and domestic investors, as well as directing the investment funds towards the solution of regional problems and priorities. As methods for research, the authors used logical and comparative analysis of regulatory and program targeted documents of federal and regional levels that state the instruments stimulating the support of investors to accomplishing regional targets (Akopova and Przhedetskaya, 2016; Epifanova et al, 2015; 2016; Frank et al., 2016; Kolchanova and Kolchanova, 2016; Liapis et al., 2013; Kormishkin et al., 2016; Thalassinos et al, 2013). Informational basis of the research relies on official data provided by the Federal Statistics of Russian Federation and its regional subdivision within the Rostov area. Informational basis further includes strategic planning documents of the Rostov area, program-targeting documents of midterm planning, as well as the results of the investors' survey about the obstacles that increase the difficulties of project accomplishment (all provided by the Administration of the Rostov Region). 3. Results In order to achieve the assigned goals and solve the problems of economic restructuring of the Rostov region on both federal and regional levels, there exists a whole complex of instruments that are divided into two groups. …