The article substantiates the need for the development of balneology resorts in Krasnodar Region in the direction of improving their competitiveness based on the concept of innovation dynamic model. Dynamic model of the concept of innovation serves as a basis of innovation activity of Krasnodar balneology resort territories. This model means development, implementation and maintenance of an innovative mechanism of competitive development. The implementation of this concept is a challenge at the system level, which requires a search for possible ways to overcome regional (spatial) development disparities, irrational territorial organization, low quality of services, improving the competitiveness and the level of cooperation of tourist-recreational complex with industrial-production activities carried out in the region, using the potential of cross-border cooperation with neighboring regions. The introduction in the enterprises Krasnodar balneology resort territories with the considered knowledge management system could significantly improve the management of personnel, prevent the “loss” of knowledge, that will help to optimize the effectiveness of the departments and the organization as a whole, increase the level of competitiveness. The study provided methodological tools to solve the problems rationally. Meeting the challenge of development and implementation of methodological tools of the innovation activity development mechanism of Krasnodar balneology resort territories based on the concept of innovation dynamic model contributes to the sustainable growth of the level and quality of life of the population of these territories based on balanced economic and social innovation system, that guarantees environmental safety, the dynamic development of the economy and the implementation of the strategic interests of the region in the Black Sea region. In addition, the new system will implement a gradual improvement of information-analytical systems, and decision support systems.This will facilitate the implementation of an intensive model of economic growth, development of the potential of interregional cooperation. Cooperation with other regions will be transformed into a key factor dynamizing economic growth of Krasnodar region. This will lead to the development of Krasnodar region as a national and international center for balneology; leveled regional disparities and ensure environmental safety.