Creative economy in the system of regional innovation development: theoretical and strategic foundations

Abstract

The chapter examines the theoretical, methodological, and strategic foundations of creative economy development within the regional context. The relevance of the study is determined by the transformation of contemporary models of regional development under the influence of the knowledge economy, digitalization, innovation, and the growing importance of human capital. Under these conditions, the competitiveness and resilience of regions increasingly depend on their ability to mobilize available resources, generate and implement new ideas, develop entrepreneurship, and transform intangible assets into economic and social value. The purpose of the chapter is to substantiate the theoretical and methodological foundations and strategic directions for the development of the creative economy as a factor of regional innovation and socio-economic development. The study systematizes theoretical approaches to understanding the creative economy and its regional dimension, clarifies the relationship between creative potential, creative industries, and the creative economy, identifies the role of human, intellectual, cultural, entrepreneurial, and institutional resources, and examines the mechanisms through which their interaction affects regional development. Particular attention is paid to the distinction between the creative potential of a territory and the effectiveness of its utilization. The methodology is based on systemic, institutional, spatial, structural-functional, and strategic approaches, as well as on the methods of analysis and synthesis, comparison, theoretical generalization, systematization, and conceptual modelling. The scientific contribution of the chapter consists in substantiating a systemic approach to the creative economy as the capacity of a territory to transform its human, intellectual, and cultural potential into economic and social value through entrepreneurship, innovation, digitalization, creative industries, cultural resources, and institutional interaction. The chapter demonstrates that the availability of creative resources does not automatically generate corresponding development outcomes. Their realization depends on the quality of the regional institutional environment, infrastructure, entrepreneurial ecosystem, professional networks, access to finance, digital opportunities, and external markets. On this basis, a conceptual model of the transformation of regional creative potential into development outcomes is proposed, and strategic directions for strengthening the creative economy are systematized with due consideration of territorial differentiation. For Ukraine, the proposed approach is particularly relevant under conditions of war, structural transformation, and regional recovery, as it emphasizes the restoration and productive utilization of human capital, support for entrepreneurship and innovation, digital transformation, preservation and economic activation of cultural resources, and integration of regions into national and international networks.