The nature of a region's economic potential and methodological aspects of its assessment

the article notes that assessing a region's economic potential is a complex task requiring consideration of numerous interrelated factors. It has been established that existing methodological approaches predominantly focus on individual elements, such as the resource base or the size of the production sector, while often ignoring the interdependence and complex interactions of various components of the economic system. It has been demonstrated that a holistic analytical approach provides a more balanced and accurate assessment, incorporating not only statistical data but also the structural characteristics of development potential. The developed diagnostic system, based on an analysis of the employment structure, the state of capital resources, investment dynamics, and financial parameters, allows for the identification of a territory's strengths and simultaneously identifies areas requiring priority development measures. It is shown that the study of labor potential includes an assessment of demographic characteristics, the level of qualifications of the population, and labor market parameters reflecting the scale of employment and unemployment. Information on the state of production assets reveals the characteristics of the infrastructure base and its degree of readiness to create goods and provide services. Financial and investment indicators demonstrate a region's ability to generate its own resources and attract external capital investment for economic growth. A typology of territories, based on the author's interpretation of economic potential, identifies groups with high performance, average levels of development, and significant need for support measures. Comparing economic potential using a multivariate average allows not only to assess a region's position relative to other regions but also to identify areas where efforts are needed to improve competitiveness. This study proposes an approach to assessing a region's economic development potential, built on four conceptual foundations, providing a methodological basis for making strategically sound management decisions.

regional development, economic potential, assessment methodology, regional typology, resource base, institutional environment, innovation activity