The article examines the problems associated with the effective application of methods of state regulation of innovation and investment activity in the municipal entity and proposes measures to ensure comprehensive socio-economic development of the city. In the course of the study, modern trends were identified and the current state of innovative activity was characterized, in particular, directions for the effective use of the financial and investment reserve of off-budget sources for the implementation of the investment policy of the municipal entity were substantiated, proposals aimed at increasing the financial potential in the system of measures to create a favorable investment climate were developed and substantiated. With regard to the new political and economic realities, it is necessary to revise the institutional foundations of state regulation of investment activities in the municipal entity. To solve these challenges, the authors offer a set of recommendations, which include priority areas of investment activity, principles of financial potential formation. We focused special attention on the non-budgetary component of the formation of the financial potential of municipal entities. A set of recommendations has been developed regarding the involvement of population savings, financial market resources, foreign investments, extrabudgetary funds, and bank loans in the investment process. A set of interrelated institutional, organizational and informational measures is presented, aimed at creating a favorable investment climate in municipal entities, including well-founded innovations in investment tax benefits, subsidizing the interest rate on investment loans, municipal procurement systems, investment insurance, which will create additional incentives for the use of the territory's financial and investment reserve.
Read full abstract