Abstract: the fourth industrial revolution, global economic crises, and pandemic pose serious challenges to the development of modern states. The first part of the research showed the high degree of influence of the regulatory environment on technological development and its unsatisfactory level for ensuring the new industrialization of Russia. The purpose of this article is to systematize specific dysfunctions of the legal environment of Russian regions. Close ties of the regional authorities with the business community and its opportunities to influence the institutional conditions justify the choice of the regional level of the research. The base methods of paper are dialectical and functional analysis. The research has revealed dysfunctions of the regulatory environment for the successful technological development of domestic regions: low level of intellectual property rights, reactivity and low adaptability of the regulatory environment, nondeterministic nature of technological development, unbalanced interests of development and security, regional inequality. The results of the research have practical significance for civil servants who are focused on the technological and economic development of the country and regions, and theoretical significance for researchers interested in the technological and institutional changes.
Keywords: legal environment, regulatory environment, institutional environment, institutions and technologies, technological development, regional development, innovative development