Subject. This article examines the organizational and economic relations related to the formation and implementation of competitive advantages of the region. Objectives. The article aims to determine the sources of competitive advantages in the region. Methods. For the study, we used the general scientific research methods. Results. The article discusses the main types of competition between regions, namely the vertical and horizontal ones. It finds that the traditional advantages of regions (absolute and comparative) in the modern world are losing their significance, and it is necessary to form competitive advantages on the basis of strategic, market and resource approaches. Conclusions. The solution to the identified problems lies in the transition to strategic management of competitive advantages, which involves the implementation of innovation and investment strategies.
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