Importance The article deals with the formation of the innovation climate at the regional level. The subject of our analysis is the conditions and factors that contribute to or slow down the development of innovative activities at the meso-level. Objectives The purpose of the article is the scientific justification for the rating methodology of regions of the Southern Federal District, depending on the quality of the innovation climate. Methods To consider the problem, we used econometric analysis methods. We investigated various aspects of innovation in the regions, defined criteria for assessing the degree of innovation attractiveness, carried out innovation climate monitoring at the regional level. As the criteria for assessing the degree of innovation attractiveness, we used indicators of efficiency of research and development, formation of innovative capacity, and innovation efficiency. Results The rating methodology enables to rate and position the regions of the Southern Federal District, taking into account the values of integral indicators. We have identified measures of stimulating and supporting the innovative activities in different regions and defined the degree of quality of innovation climate of the District's regions. We divided the regions of the Southern Federal District into three groups: the regions with the most favorable climate for innovation (Rostov and Krasnodar regions); the regions with a medium level of favorableness (Volgograd and Astrakhan regions); and the regions with adverse innovation climate (Republic of Adygea and Kalmykia). We have identified indicators on knowledge generating productivity and formation of innovation and productive capacity of the regions of the first group. We are marking the high production potential of the regions of the second group and fixing the low level of development of scientific and innovation capacities among the regions of the third group. Conclusions and Relevance We concluded that the innovation climate should be improved through the differentiation of the industrial and investment policy measures, and these measures should take into account the type and degree of quality of the innovation climate.
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