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The monograph considers theoretical and methodological problems of interaction between business and government in the economy and social sphere of the regions to create an investment climate as the basis for socio-economic development of Russia and as the main condition for investment inflow. Numerous arguments and facts, statistical data presented in the monograph indicate that President V. Putin and the federal government led by M. Mishustin together with regional authorities have failed to provide domestic businessmen with necessary conditions for economic and innovation activity, to create a favorable climate for investment in domestic production, to stop capital flight from the country. The results of scientific research can be used in the educational process in the study of academic disciplines "State and Municipal Administration", "Regional Administration", "Political Science".