The region’s development potential is a set of endogenous features that determine the growth of the local economy. It supports the development of knowledge, innovation and eff ective competition on global markets. The publication argues that saturation with potential may not be enough to cause economic growth. The distribution of potential is also important: concentration is its catalyst. The study proposes a method for measuring the concentration of potential. It has also been shown that the size of the regional economy depends on the distribution of potential in the region.