INNOVATION POTENTIAL AS A FACTOR OF SUSTAINABLE DEVELOPMENT OF THE TERRITORY

The article is devoted to the study of the role of innovation potential in ensuring sustainable development of the territory. The article critically analyzes the existing conceptual approaches to the understanding of sustainable development of the territory and innovation potential as a factor of sustainable development of the territory. The author’s definitions of these concepts reflecting their systemic interrelation are proposed. Based on the critical analysis of existing methodologies, the key problem — the lack of tools for assessing the innovation potential of small and medium-sized cities — is revealed. The author’s methodology for assessing innovation potential at the municipal level, taking into account the specifics of small and medium-sized cities.