Selection of Taxation Strategy Tools for Sustainable Innovative Development of the Russian Economy

The subject of the research is financial policy, tax regulation and mechanisms for ensuring advanced innovative sustainable development of the manufacturing industries, given the low investment attractiveness of the Russian economy. The purpose of the research was to seek tools and the most effective and efficient sources of financing national goals and strategic objectives of the Russian Federation development. The research used the dialectical method, the inductive and deductive approaches, the index method as well as grouping, comparisons, descriptive analysis, statutes and regulations, data of the Russian Statistical Service (Rosstat) and related publications.Based on the research findings, it is concluded that the effective and competitive innovative development of the domestic industry is hardly feasible without enhancing the competitive advantages and investment attractiveness of the Russian business. To this end, it is proposed to take the best advantage of Russia’s national natural wealth through its more equitable distribution by equalizing the potentials of the extractive and manufacturing industries as well as better financing of the country’s socio-economic development. Tax regulation tools are proposed to bring the Russian economy out of dependence on fuel and raw materials exports and ensure more efficient use of national natural resources as the main competitive edge of the Russian economy, the most important factor of investment attractiveness and a source of wealth for the entire population. The scientific novelty of the study is the substantiation of the proposed measures aimed at tax regulation improvement making it possible to increase financial flows directed to the innovative development of manufacturing industries as well as the state budget revenues thereby enhancing the competitiveness and investment attractiveness of the above industries along with relieving the national economy from the fuel and raw materials dependence.