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An approach to assessing the possibility of diversifying the regional economy is presented on the basis of the author’s methodology for formation of recommendations for development of regions and sectors. The approach is based on regression analysis using an extended economic basis, including the characteristics of regional differentiation and innovative activity. On this basis, sectors can be identified, the development of which depends on the innovative activity of the regions. The estimates obtained make it possible to judge the influence of the characteristics of regional differentiation and innovative activity on development of such sectors. It is shown that innovative activity can contribute to diversification, if the region has a relatively high level of economic development. As a result of approbation of the offered approach, 20 sectors were identified, the production volume of which depends on the innovative activity of the regions aimed at creating international patent applications. It is shown that for each sector, the development of which depends on innovative activity, regions can be identified, where the growth of innovative activity can be accompanied by an increase in the volume of production of this sector and its appearance as a strong one. For the CONSTRUCTION sector, considered as an example, 17 regions have been identified that are priority for development of this sector and its transformation into a strong one.

An approach to assessing the possibility of diversifying the regional economy taking into account innovation activity