Abstract:

The paper deals with the development to innovation in a macroeconomic environment that is characterized by increasing isolation and governmental regulation in all spheres of innovation. The paper tends to analyze whether introduction of KPI system for the regions that includes increased amount of intellectual property leads to a different outcomes in terms of innovation development. This proposition is supported by quantitative analysis that reveals the case of strong government regulation implementation of innovation support programs might lead to opposite results; extra support provokes decrease in regular innovation activity, while enhancing strong marketing innovation.