SYSTEM PROPERTIES EVALUATION OF INDUSTRY CLUSTERS IN THE CONTEXT OF URBAN INFRASTRUCTURE DEVELOPMENT

Abstract

The paper offers insights into the major properties of industry clusters from the systemic approach perspectives, in particular it refers to integrity which suggests the adaptability of the elements properties, that is, the disparity between the overall system properties and the sum of properties of the system building elements. In industry clusters the integrity manifests itself in certain economic and financial aspects. The systemic principle of integrity is fundamental to the formation and management of an industry cluster. The degree of system integrity is determined by the occurrence and significance of its backbone factors. This array of driving systemic factors contributes to boosting the innovation and development within the cluster framework.). When assessing the effects of the integrity principle, the following diametrically opposed properties as progressive factorization (the system approaching a status with more independent elements) and progressive systematization (the tendency of the system to reduce the autonomy of its elements and search for new synergistic effects) have been employed. The increase in progressive factorization reduces the systemic factors capacity, whereas the occurrence of progressive systematization leads to the concentration of businesses in the cluster and thus the intensification of competition through innovation. Along with the principle of integrity the system ability to self-organization and self-development has been evaluated that revealed that on-going organizational change and the system updates to respond to changing external environment and its impact factors gradually contribute to building an adaptation mechanism which ensures the ability to self-organization. The adaptation mechanism is based on such self-organization elements as differentiation (the tendency of the system to the structural and functional diversity of its building elements to manage the contradictions and adapt to changing environment) and volatility (maintaining mobility functions under the system structure sustainability) which includes management hierarchical structure. Rational is provided that at the government level, a priority should be given to the creation of institutions for urban infrastructure development, as the most appropriate innovation and technological centres, which can act as growth points or similar institutions for the national innovation infrastructure development which will enhance cluster formation in different industry segments. Evidence has been provided that innovative industry clusters must involve testing and experimental infrastructure to facilitate innovation implementation into manufacturing. This testing and experimental infrastructure will attract new innovation bearers to the cluster, thus becoming a channel to bring in new investors, strategic partners, suppliers, support industries and related services, that is, experimental infrastructure is the basis for building systemic relationships in a cluster to provide fast transfer of intellectual assets into the real sector of the economy.