The energy and resource conservation in modern conditions of economic development of Ukraine, are the main ways to increase the economic efficiency of its regions.Resource constraints encourage regions to increase their competitiveness through resource conservation and resource replacement. However, resource-oriented regions are at risk in terms of European integration and globalization to be outside the scope of the global division of labour. Resource-innovation policy in the region is a precaution measure of getting into this situation.Modern interpretation of the essence of the resource conservation mechanism implies the implementation of both elementary resource-saving processes (simply quantitative effect), as well as economically complex processes associated with the rationalisation of the available resources usage (qualitative cumulative effect).In the process of the resource conservation mechanism development, the formation of the cost savings mechanism is being formed. In terms of European integration, the economic mechanism of resource saving of the region should be considered as the interaction of available resources of the economic process and its functional units. The aim of the economic resource conservation mechanism development is to optimize the usage of all available resources of the socio-ecological-economic system of the region.The process of the regional economic mechanism of resource conservation development and formation consists of three stages:• development of principles of economic resource conservation mechanism formation and realization;• formulation of goals and setting objectives of the regional socio-ecological-economic system development taking into account resource conservation;• development of methods and tools, that will ensure practical implementation of the economic resource conservation mechanism of the region.At present, the resource and cost approaches are used to formulate a resource- conservation model. However, as the practice has shown, the "intermixed" resource-cost approach is required to ensure optimal resource conservation, which, in terms of resource constraints, requires some adjustment.Nowadays, resource utilisation efficiency (limitation) is the major limitation of production growth. The competitive comparative assessment of the regions is complicated due to the difference in regional resource provision. The difference in resource consumption of regions can only be counter-balanced by the economic capacity strengthening of the regions through innovative development.Therefore, the cost management system should be based on the special-purpose programme and the implementation of the innovation strategy. The continuity of resource-innovation substitution is the result of resource-innovation development, which, in turn, implies continuity of resources development and their transition through the innovative stage to the resource stage, but at a new level. Thus, innovations increase the efficiency and provide the preservation of balance as well as increase the economic capacity of the system, while the capacity management stabilizes it in the course of time and ensures the development in the desired direction.