IDENTIFICATION OF THE CITY WELFARE ECONOMICS STRATEGIC MANAGEMENT INNOVATIVE MODEL IN THE GLOBAL CHALLENGES CONDITIONS.

The relevance of the presented research is based on the increasing role of high quality human resources and its reproduction conditions in modern innovative focused socioeconomic city development processes in the competitive environment of the accruing global challenges. The research is aimed at identifying and proposing efficient ways to create the innovative model of the city sustainable development strategic management on the basis of transition from present economics of qualitative human resources using to economics of their system reproduction - welfare economics, employing econometric methods to identify and rank socioeconomic (including non-material) factors, determining this transition. Achieving the goal of the research required the solution of such problem tasks as structural representation of welfare economics parametric characteristics and factors system, empirical relations in the "achieved welfare level - innovation-oriented economic development" system justification. The authors provide proofs of the applicability of empirical modeling results in the field of real-life ensuring the Pareto optimum selection of the «economy - social sphere» interaction mechanism. Novation of authors' approach, first of all, is in the theoretical methodological basis of heuristic need to integrate the innovative model of the city sustainable development strategic management (allowing fully take into account the effects of the social and economic development trends system regulation) in the management decision-making process. Gradual transition to the urban agglomeration functional and spatial development management becomes the important methodological aspect of the new urban policy effectiveness dynamic system analysis. Innovation clusters formation and rules of the urban environment elements (economic, social, environmental, etc.) behavior are in the centre of such policy making process. Author's development allow us to offer such criteria for the innovation-oriented urban dynamics social and economic policies mutual coordination degree identification as: producing a substantial amount of the gross domestic product per capita, achieving a high welfare level, the social institutions development; social policy among the development priorities place, the importance of redistributive functions of the state, which allows to eliminate the significant differentiation of incomes in the society and eliminate the poles of poverty and wealth. [ABSTRACT FROM AUTHOR]