Modernization of development institutions as a strategic area of improvement of the regional economic policy

The low efficiency of development institutions determines the need to transform them, identifies the possible areas of modernization and the prospects for their further activities to promote the regions. The current trends, the aspects and challenges of such institutions functioning and management are examined. The main conceptual approaches to their understanding are demonstrated. The focus is on their federal and regional activities. The study on the regional practices of improving the development and support institutions makes it possible to devise a modernization plan in terms of the strategic priorities, the economic self-dependence of the Russian regions and the enhanced regional system of institutions. The strategic value of the subject matter in the innovative economy is highlighted as well. The authors substantiate the necessity to update and enhance development institutions from the perspective of the spatial development, decreased regional differences and decentralized governance.