Abstract-The authors searched for ways of increasing a region's reproductive potential and enhancing its involvement in inter-regional and international division of labor. The study is based on simultaneous examination of a region as functional and structural subsystems of national economy by methods of quantitative and qualitative analysis. The paper presents theoretical assumptions and methodological foundations of research into the reproductive potential in the framework of regional economic management regarding resource, dynamic and resulting components. The authors developed a conceptual approach to study of the reproductive potential including three inter-related groups of potentials: resources, factors and results of economic development, which allows one to consider the complex of in-line, torque and dynamic parameters and to carry out assessment by means of a graphical model. The authors proposed an expanded view of an aggregate potential: a latent potential (implicit and unmeasured potential value); an actual potential (power and size of economic system); a forecasted potential (reserves and unused opportunities). The authors identified features of the reproductive potential (consistency, controllability, built-up capacity, variability of sizes and borders), which allow defining it as a major subsystem of regional regulation. The authors described features of the region's reproductive potential: its specific structure, dual focus of operation, a significant role of import and export.