Importance The research evaluates regions' capabilities for creating innovative geographical clusters, and determines key factors influencing the regions' innovative activity. Objectives The research determines methods to evaluate whether the regional economy is capable of creating innovative geographical clusters, and identifies key factors for the innovative development of Russia's economy. Methods The research draws upon the concept of system analysis, proceedings of leading national and foreign specialists in regional economics. The research into the fundamental role of innovation, information and knowledge of socio-economic systems relies upon proceedings of renowned scholars. We also scrutinized proceedings of famous economists, which underlay the theory of innovation in the cyclical and genetic patterns of socio-economic systems development. The key methodological framework comprises induction, deduction, dynamic, comparative analysis, SWOT-analysis and integral evaluation. Conclusions and Relevance We emphasize material, technical, investment, labor, innovative, technological, information and financial factors as key one, as they influence the regions' capability to create innovative geographical clusters. The article indicates strengths and weaknesses in the federal districts of Russia, referring to their ability to create innovative geographical clusters.
Keywords: geographical innovative cluster, economic capabilities, innovative activities, region
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