Increasing the innovative potential of the human capital in the regions of the South of Russia

Purpose: is to identify the key determinants of increasing the innovative potential of human capital in the regions of the South of Russia. Methods: the study used the systematic approach, methods of statistical analysis, tabular and graphical presentation of data. Results: the comparative analysis of the socio-economic situation of the regions of the South of Russia – the Southern Federal District (SFD) and the North Caucasian Federal District (NCFD) was carried out. The lagging position of the NCFD in terms of development rates, especially in terms of innovation, has been revealed. Consideration of the structure of the employed population by the level of education in the economy of the regions showed that the number of employed people with higher education in the SFD is less than in the NCFD. However, based on the results of comparing the districts by the ratio of the level of education and GRP per capita, it was revealed that the SFD creates more added value. All other things being equal, one of the reasons for this is the insufficient level of training of specialists in the higher education system. In addition, the process of creating added value is influenced by various factors, and in this case the explanation lies in the plane of the difference in the level of innovative potential of human capital in the studied regions. The main criteria of the requirements imposed on the innovative potential of human capital in modern economic conditions are defined. A number of priority competencies have been identified that specialists should possess in the digital economy. Conclusions and Relevance: for the regions of the South of Russia, which today are characterized by low rates of economic development, the most important task is to improve the efficiency of human potential management. Increasing the innovative potential of human capital, including through the use of appropriate methods and tools aimed at training specialists with innovative competencies in demand, will allow these regions to stabilize the socio-economic situation and embark on the path of sustainable development.