Advantages of Branch Clusters for Old Industrial Regions
Doctor of Economic Sciences, Professor
National technical university«Dnieper Polytechnic» Ministry of Education and Science of Ukraine, Dnipro
Boichenko M. V. (2020). Advantages of Branch Clusters for Old Industrial Regions. Visnyk ekonomichnoi nauky Ukrainy, 2 (39), рр. 46-49. doi: https://doi.org/10.37405/1729-7206.2020.2(39).46-49
Among network formations, we can select cluster models that cover a wide range of social and economic aspects, organizing collaboration between diverse businesses located on a certain territory. Presently Ukraine has gained enough experience and knowledge to increase economic growth by itself, but the principles of domestic and foreign management practice in the field of creation and operation of clusters can be used to implement the development strategy of the region.
Together with the basic traits of clusters’ classification, we identified their successful implementation; we outlined the major cluster models and provided examples of the most successful ones in the world including trans-border and Ukrainian.
One of the outcomes was that the main peculiarity of sectoral clusters is their networking organization form of entire production process: from supply to sales. We also found out what economic benefit the formation and functioning of such clusters gives and pointed out basic conditions for a sectoral cluster forming as a vital, sustainable, successful and efficient structure.
A sectoral cluster is the most efficient model for old industrial regions, their businesses do not merge completely, but establish a mechanism of collaboration, by so doing they preserve their individual status and cooperate with other businesses inside and outside the cluster. This is different from other entities. The basis of sectoral cluster forming is economic relations in the form of long-term contracts based on interaction between different actors within the cluster. A sectoral cluster gives the opportunity to small businesses to combine advantages not only of small but of large businesses as well. Sectoral clusters chiefly use horizontal linkages and specializations contributing to each other, producing higher results by using the advantages of businesses location and regional management possibilities. Sectoral clusters like government bodies are responsible for region development; they can attract additional investments, initiate innovative processes and solve certain social issues in the region.
For old industry regions, namely sectoral clusters are the efficient mechanism that will provide successful functioning of business rationally using the economic potential of the region and will establish its sustainable development.
sectoral clusters, old industry regions, traits, models.
- Tyshchenko O.P., Zanizdra S.A. (2014). Derzhavna klasterna polityka v konteksti formuvannia innovatsiynoi modeli rozvytku natsionalnoi ekonomiky [State cluster policy in the context of forming an innovative model of national economy development]. Biznes Inform, 8, рр. 34-39 [in Ukrainian].
- Serik O.D. (2009). Kontseptsiia klasteriv ta ii rol u formuvanni konkurentospromozhnoi ekonomiky derzhavy [The concept of clusters and its role in the formation of a competitive state economy]. Visnyk Khmelnytskoho natsionalnoho universytetu. Seriia: Ekonomichni nauky – Herald of Khmelnytsky National University. Series: Economic Sciences, 3, Vol. 2, рр. 214-217 [in Ukrainian].
- Mamonovа V.V. (Ed.). (2012). Klastery yak instrument rehionalnoho rozvytku [Clusters as a tool for regional development]. Proceedings of the Scientific and Practical Seminar. Kharkiv, KharRI NADU. 115 р. [in Ukrainian].
- Pavlenko O.O., Martynets V.V., Rybalchenko S.M. (2018). Rozrobka modeli vykorystannia klasternoho pidkhodu pry formuvanni sotsio-ekoloho-ekonomichnoi rivnovahy rehionu [Development of a model of using the cluster approach in the formation of socio-ecological and economic balance of the region]. Visnyk Sumskoho derzhavnoho universytetu. Seriia «Ekonomika» – Visnyk of Sumy State University. Economy series, 2, рр. 7-12 [in Ukrainian].
- Vyshnyakova I.V. (2011). Dosvid stanovlennya ta rozvytku klasteriv v okremykh krayinakh Pivnichnoi, Skhidnoi i Tsentralnoi Yevropy [Experience in the formation and development of clusters in some countries of Northern, Eastern and Central Europe]. Visnyk Zaporizkoho natsionalnoho universytetu. Seriia: Ekonomichni nauky– Bulletin of Zaporizhzhіa National University, 1 (9), рр. 184-193. [in Ukrainian].
- Hrytsenko S.I. (2019). Stratehiia rozvytku ekolohichno spriamovanykh transportno-lohistychnykh klasteriv blakytnoho okeanu [Strategy for the development of ecologically oriented transport and logistics clusters of the blue ocean]. Visnyk ekonomichnoi nauky Ukrayiny, 2, рр. 151-156. doi: https://doi.org/10.37405/1729-7206.2019.2(37).151-156 [in Ukrainian].
- Chebotarov V.A., Kolosov A.M., Suvorov M.V. (2019). Aktualizatsiia formuvannia klastera vidnovlyuvalnoi enerhetyky v umovakh zminy taryfnykh trendiv [Actualization of the formation of the renewable energy cluster in the conditions of changing tariff trends]. Ekonomichnyi visnyk Donbasu – Economic Herald of the Donbas, 2 (56), рр. 4-9. doi: https://doi.org/10.12958/1817-3772-2019-2(56)-4-9 [in Ukrainian].
- Kocheshkova I.M. (2019). Mozhlyvi formy pidpryemstv z pererobky promyslovykh vidkhodiv i dzherela finansuvannia ikh stvorennia ta funktsionuvannia [Possible forms of industrial waste processing enterprises and sources of funding for their creation and operation]. Ekonomichnyi visnyk Donbasu – Economic Herald of the Donbas, 3 (57), рр. 63-69. doi: https://doi.org/10.12958/1817-3772-2019-3(57)-63-69 [in Ukrainian].
Full Text .pdf