The key point for activisation of investment activity is "What can be a stimulus for the city development for a long-term perspective?" Luhansk has a developed industrial complex consisting of enterprises for machine-building, metallurgy, production of metal goods, food industry and processing of agricultural production.

However, nowadays quite essential is to apply new technologies and modern methods for business control, which could be the basis for the development of innovative activity and modernisation of the real sector of economy. Besides, this innovative and science intensive production can be based on the scientific potential of the city. There are 14 higher educational establishments (6 of III-IV accreditation level, 8 of I-II accreditation level). Almost all higher education establishments of the city cooperate with the universities of Europe, Asia, and the USA, actively interacting with international organisations, funds and programmes. Providing high manufacturability of production, an innovative vector in attraction of investments by means of cooperation will take along traditional enterprises.

Thus, there appeared an idea to try and attract big investments and concentrate them in big launch pads (Industry park, Logistic center), which will help to reach a synergetic effect due to placement in one pad of different companies, the work, technology, production cycles and goods distribution infrastructure of which supplement each other.

We are conscious of the fact that the regions placing high technological production and logistic complexes on their territory win in many ways: creation of new working places, growth of salaries and taxes which are spent on improvement of social environment. One more general effect is that acquaintance with a more advantageous practice and the world standards will help get a layer of specialists able to create new products with high value added. At the same time, partnership with foreign companies can be a push to development of innovative small business.

We are sure that the main thing at the first stage is to create most favorable conditions for investors' work, eliminate all the administrative barriers, and for executive authorities of Luhansk City Council to take on all the formal procedures.

Our competitive advantages are not only good geographical situation and closeness to closeness to the markets of the Russian Federation (Rostov oblast), but also inconsiderable investment risks and several exemptions in the form of partial liberation (or decrease of the sum) from the land tax at the expense of the funds put to corresponding local budgets, administrative support of the local authorities. In other words, by attraction of big investment companies, we offer them clear and understandable rules of work, as well as ready beneficial business-products.

Conducting a policy of production diversification, we have chosen perspective forms for cluster development in the form of technical parks, industrial parks, logistic centers to be these business products. We are sure that a synergetic effect from close economic connections between the enterprises of the cluster and scientific and research centers of the city, as well as from inter-cluster control for logistic flows will ensure their competitiveness. Thus, the most important task is involvement of more local companies and productions in these associations.

Except the cluster forms of investment business products of the city, perspective investment objects are small land plots from 0.03 to 31.08 hectares and unoccupied non-residential buildings. To date, there are 15 such land plots on the territory of the city.
In order to ensure quick and easy access to the information about available investment objects in the city for potential investors, the Administration for Economics of Luhansk City Council does the job on creation, updating and publication of relevant databases.

Also, an inventory of the objects of municipal property for which application of the mechanism of public and private partnership is possible has been carried out. The choice of such a mechanism for attraction of private capital is good for development and normal functioning of socially important objects, operation of which requires considerable expenditure of the budgetary funds.

Successful realisation of Luhansk investment potential together with an active position of the local authority will help to form an effective informational and administrative support of investment processes, and acquaint potential investors with the investment proposals of the city.