National innovation system as a basis for forming and implementing the regional economy innovation capacity

This paper focuses on the innovation development of regional economy within the national innovation system (NIS) which is viewed as an organizational form of implementing innovation capacity. The structural and functional approach used by the author allows distinguishing the NIS elements: science and education (research and development sector acts as an organizational form of the innovation capacity implementation), business sector (innovation commercialization sector acts as an organizational form of implementing the innovation capacity), and innovation infrastructure (knowledge transfer sector acts as an organizational form of implementing the innovation capacity). The regional innovation system (RIS) is structured on levels, functions, and subjects and is presented as a number of subsystems: first, institutional subsystem, organizational and administrative subsystem, finance and investment subsystem (‘management-regulation’ function ensures external opportunities and incentives for implementing the innovation capacity), second, research and development subsystem, education subsystem (‘knowledge generation’ function ensures internal opportunities for implementing the innovation capacity), third, infrastructure and information subsystem (‘knowledge transfer’ function ensures implementing the innovation capacity resource element), forth, production and technology subsystem, cluster and sector subsystem, and resource subsystem (‘innovation implementation’ function ensures the result of implementing the innovation capacity). The author distinguishes the elements of the innovation implementation structure in accordance with the RIS subsystems.