Subject. The article addresses the institutional environment of innovative development of the Kaliningrad Oblast.
Objectives. The aim is to identify basic parameters of institutional environment of the Kaliningrad Oblast as a model region, representing a virtual cluster of administrative-territorial entities of the Russian Federation with low level of innovative development.
Methods. The study employs methods of economic-statistical, cluster and logical analysis of basic parameters of the institutional environment of regions in the context of their innovative development.
Results. The paper presents results of logical interpretation of economic and statistical (cluster, correlation and regression) analysis of the state and dynamics of basic parameters of model region’s institutional environment, representing a virtual group of administrative-territorial entities of the country, characterized by low level of innovation activity.
Conclusions. The results of innovative activities of the region, estimated by the share of innovative goods, works, services in their total volume during 2010–2022, demonstrate formally unstable growth. However, fluctuations in values between 0.1 and 1 per cent actually mean consistently low values. The state of institutional environment of the region does not contribute to its innovative development due to low values of propensity for innovation and consumption, unstable dynamics of propensity to consume and to materialize assets.