“…The regions are characterized by differing types and levels of natural resources, diverse business climate conditions, competition regimes, infrastructural quality, educational quality, fiscal incentives and population characteristics that constitute formal institutional risks (Belyaeva et al , 2016; Ermasova et al , 2014). In addition, though the central government still plays a major role in innovation activities by channeling financial resources for the implementation of programs it approves (Guzikova, 2014), regions are allowed to fund research and development activities (Federal Portal of science and innovation activity, 2015; Law of Tomsk region, 2008; Law of Rostov region, 2006; Law of Saha republic, 2006). According to Ferreira et al (2017, p.77), “regions with entrepreneur favorable institutions and a similarly suitable culture may boost their competitive advantage and thereby attract investment”.…”