2018 Issue №3

The uniqueness of a territorial socio-economic system lies in the specific features of spatial networking of economic entities that form clusters of excellence and ensure the competitiveness of the entire system. Identifying the key elements of territorial capital is a global challenge faced by modern regional policy. I analyse the background for, and limits to, the development of a spatially targeted regional development policy. Lithuania’s so-called valleys – integrated centres for research and business — are a possible way to embrace the approach that suggests concentrating resources on breakthrough areas, which makes it possible to put local growth points on the international map.

In this article, I address the relationship and interactions between the innovation- promoting and economic functions of the state. In today’s condition, a solution to the major problem of national economic development lies in the employment of advanced technology. I identify the areas where the innovative function of the state overlaps with its economic subfunctions. I propose and validate a logical model for relations between the innovation-promoting and economic functions of the state.