Regional renewal and development of Ukraine’s economy on the basis of cluster policy


Keywords: cluster, cluster policy, regional development, state support, administrative methods

Abstract

The article is devoted to the study of the process of state development of territories through the system of clusters. The state program which defines priority branches for development and formation of clusters has been analyzed, the regions needing cluster development for the purpose of achievement of economic growth have been determined. The paper investigated the impact of clusters on the economic growth of the European Union, their role in job creation, and prospects of their introduction into the Ukrainian economy. Particular attention is paid to the policy of regional economic growth while ensuring conditions for competition and anti-monopoly legislation. The paper demonstrates the success of cooperation between the EU and clusters to ensure their international competitiveness and remove trade barriers in the European market. In addition, the study pays attention to the need to create conditions for economic development of the territory, the introduction of support mechanisms for cross-border industrial and technological parks, economic and industrial areas, the creation of cross-border clusters. Statistical data are shown, according to which clusters in the EU provide 54 million jobs and wages are higher by 3%. In the study it was found that the innovative nature of cluster alliances would help develop competitive industries in Ukraine: helicopter and aircraft construction and production of advanced titanium alloys. The development of clusters in strategic industries will help the Ukrainian economy substitute imported components and create new jobs. Therefore, the prospect of cluster implementation and the creation of a targeted administrative policy will create a favourable effect on the economic development of the regions and could revive economically depressed regions. Having analysed the EU example of cluster management, development and support the main administrative documents that regulate this process were identified. Their legislative study and implementation into Ukrainian administrative management will help to create new innovative clusters, implement effective management strategies and ensure transnational cooperation.

JEL Classification: H83, L51, O31.

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Published
2022-06-20
How to Cite
Karpenko, A., Karpenko, N. and Reznychenko, H. (2022) “Regional renewal and development of Ukraine’s economy on the basis of cluster policy”, Management and Entrepreneurship: Trends of Development, 2(20), pp. 89-100. doi: https://doi.org/10.26661/2522-1566/2022-2/20-08.
Section
Entrepreneurship, Trade and Exchange Activities