INNOVATIVE INDUSTRIAL CLUSTERS AS A STRATEGIC FRAMEWORK FOR BUILDING THE BACKBONE OF ENTERPRISE DEVELOPMENT SECURITY

Abstract

The paper argues that the current decline of the national economy in Ukraine triggers a critical need to overhaul the interconnections between its various entities and their alliances to attain better economic performance and synergistic effect. In this context, cluster formation strategy has become a priority for many businesses and their associations. Given the global trends of fast-growing rate of education sector and business clusters development, the purpose of this research is to provide theoretical substantiation of the need to create innovative industrial clusters as a strategic framework for building the backbone principles to ensure the enterprise development security. The study results have been accomplished through the application of the systematic approach and the method of analysis and synthesis to identify the controversies in the cluster concept interpretation as well as to reason all pros and cons of innovative industrial clusters creation. An emphasis is put that despite global good practices in building and developing clusters as geographically concentrated groups of interdependent companies, up to date there is no generally accepted definition of an innovative industrial cluster. However, there are a few common features associated with innovative industrial clusters creation and evolution, in particular they are as follows: cooperation and competition among cluster participants; geographical concentration of businesses in one or more regions; positive effects on innovative processes, boosting competition, shaping competences, enhancing information flows as well as contributing to long-term dynamics in the development of relationships in the particular cluster or region as a fundamental background for enterprise security development. A survey on the global trends in the priority areas of cluster formation has demonstrated that in the US, more than half of businesses operate within clusters; in the EU about 38% of its workforce is employed in a cluster-based environment; in the countries of Northern Europe clusters cover up to 90% of businesses. The process of building clusters in Ukrainian realia has certain specifics subject to the differences in the level of economic development of particular region and its industry. A special focus is placed towards the formation of innovative clusters in metal industry based on groups of metal manufacturing companies or their corporations, financial industrial groups, etc. It is emphasised that the Ukrainian metal sector is a national industry leader. The study argues that in modern market environment the formation and further advancement of innovative industrial clusters has become a strategic priority in the context of encouraging innovation and enhancing the industry sectors development in Ukraine.