Pecularities of the regional approach to industrial policy formation

Abstract

The article discusses industrial policy, which is an important instrument of public administration aimed at ensuring sustainable industrial development, increasing the competitiveness of national enterprises and supporting innovation processes. It is determined that regional industrial policy takes into account the specific conditions of each individual region and is one of the key instruments for solving the problem of uneven economic development. It is established that one of the main advantages of the regional approach is the ability to adapt industrial policy to the specific socio-economic and environmental conditions of each region, which allows for more efficient use of local resources and achievement of balanced development, particularly in industrial, agricultural or technical regions. The purpose of the article is to systematise and outline the features of the regional approach to the formation of industrial policy. It has been proven that the regional approach contributes to greater economic diversification, as it allows for the development of industrial sectors that are most promising for each specific region. It has been determined that the formation of industrial policy at the regional level allows for the avoidance of significant disparities in the development of territories, which can lead to social and economic tensions. It has been established that the regional approach focuses on infrastructure development, which includes not only transport and energy networks, but also educational and research institutions that can be involved in local innovation development. It has been proven that for the successful implementation of regional industrial policies, it is necessary to ensure active cooperation between state bodies, local administrations and enterprises. It is proposed to develop industry at the regional level through preferential conditions for business, tax incentives, state grants and other forms of financial support that will help stimulate industrial development in less developed regions. Further research should focus on developing methods for quantitative assessment of the effectiveness of regional programmes, harmonising regional and national goals, and studying international experience of green clusters and local innovation systems that can be transferred to the Ukrainian context.