The subject of the research is theoretical, methodological and applied bases of formation and realization of innovative policy of cross-border regions. The following methods were used: analysis and synthesis, induction and deduction (to reveal the essence and characteristic types of innovation policy of cross-border regions), generalization, comparison, grouping (to study the condition and innovation potential of the EU countries and Ukraine), strategic analysis (to develop the basic principles of innovation policy of cross-border regions), and others. The purpose of the article is to reveal the essence, the order of development and instruments of implementation of innovation policy of cross-border region development, as well as systematization of types and justification of approaches to the definition of innovation potential of the cross-border region. Results. The essence, the basic stages of development of innovative policy of the cross-border region were revealed. It was proved that such policy is formed taking into account the innovation component and overcoming the barrier function of the border and the interaction of border territories of 2 or more countries in the implementation of innovations. To create a high degree of interaction in innovation, it is necessary to ensure the development, implementation and realization of innovation on the basis of joint institutional, scientific, educational, financial and resource potentials. The main stages of development of an innovation policy of the cross-border region, in particular: 1) analysis of innovation potential, 2) substantiation of the process of creating a regional innovation system and its management, 3) development of a joint vision, 4) identification of priorities, 5) development of a plan of action with a narrow set of policies, 6) monitoring and evaluation. It characterizes the types of inclusive innovation policy of the cross-border region on the basis of territorial, production and social inclusiveness. It is proved that the innovation policy of a cross-border region provides its innovation functionality, cross-border critical mass and cross-border cooperation. It is reasonable to measure cross-border interactions using quantitative indicators, such as co-financing of innovation, venture capital volumes for innovative start-ups, co-patents, volumes of innovation cooperation, joint publications, mobility of highly qualified personnel to the total number of interactions. The modern financial toolkit for the implementation of cross-border cooperation on an innovative basis is characterized and the practical importance and area of use of the latest financing tools, such as: "Pathfinder", "Accelerator", "Transition", crowdfunding, crowdlending, venture capital, etc. The parameters of identification of the cross-border territory as an innovative region were defined, namely: 1) a developed system of research organizations and educational institutions, 2) a common program for the production of innovative products and technologies, 3) the formation of cross-border business innovation, 4) the use of modern funding tools, 5) achieving cross-border interaction and mutual benefit, 6) the creation of cross-border technology parks and technology incubators, innovative cross-border start-ups, cross-border clusters and growth poles. It is analytically confirmed that in order to create a multifunctional innovative cross-border region it is necessary to enhance the intensity of innovative activity.
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