Subject. This article discusses the impact of social, infrastructural, ecosystem, and institutional factors on the development of small towns in Russia. Objectives. The article aims to develop practical recommendations for shaping an effective economic policy that takes into account the potential of small towns in Russia. Methods. For the study, I used systems, comparative, and statistical analyses. Results. The article finds that the creation of a management system linked to national strategic priorities and integrated into the region's digital infrastructure will facilitate the development of small towns. It is necessary to attract private investments through the establishment of tax incentives and the development of social and digital infrastructures. The article also presents the author-developed practical recommendations aimed to enhance the effectiveness of State measures supporting the small towns’ development. Conclusions. The article notes that differences between small towns in demographic, economic, and infrastructural parameters should be taken into account.
Keywords: small towns, regional economic policy, ecosystem approach, investment, digitalization
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