USING THE CONCEPT OF FUNCTIONAL TERRITORIES FOR INDUSTRIAL DEVELOPMENT

Abstract

The approach to solving regional development tasks introduced in Ukraine, which is implemented through the functional typologization of regions, is the basis for fulfilling its obligations to harmonize national legislation with EU law. It underlies planning and the reconstruction of the country. At the same time, ensuring economic, in particular industrial, development requires the state to implement territory-oriented mechanisms to promote the realization of regional potential. The EU practice of applying the functional approach involves improving the processes of management, coordination, and planning of socio-economic development, not limiting it to the administrative borders of regions, i.e. at the sublocal level, with an orientation toward the spatial effects of functional connections between territories. This has a positive effect on the cohesion of the European regional space. The problems of industrial development identified through the prism of functional approaches can be considered partially investigated when establishing the agglomeration effects of industrial clustering, within the framework of the structural transformation of the regional economy due to the energy transition, or from the perspective of strengthening the role of industrial policy in the formation of new growth poles.The paper outlines the possibilities of applying the concept of functional types of territories to ensure the industrial development of Ukraine and set the goals and objectives of industrial policy for functional territories as a component of the territory-oriented mechanism of industrial development. Proposals are provided for setting the goals and objectives of industrial policy with grouping by functional territories based on the official domestic approach to functional typologization. An attempt is made to approximate the European practice of applying the functional approach by including in the target benchmarks for development the capacity of the industrial potential of promising regions (in particular, sustainable territories) to produce spatial effects from its realization.