BUILDING AND DEVELOPING ENTERPRISE CLUSTERS WITHIN THE TERRITORY OF DONETSK AND LUHANSK REGIONS UNDER UKRAINE’S CONTROL

Abstract

The paper discusses the research findings on building and developing enterprise clusters along with providing rationale that the economy development, both globally and nationwide, is characterized by the expansion of integration trends and partial competitiveness mitigation by principles of cooperative interaction. These trends occur against the background of the evolving information knowledge economy which also pertains to a certain integration framework. It is proved that this type of integration enhances dissemination of innovative products through a relationships network within a market economic environment. In addition, the diversity of sources of technological knowledge and relationships facilitates the integration of impact factors to achieve company competitive advantages and contributes to boosting the available potential growth. Building a cluster based on vertical integration provides a certain pattern for new knowledge and technologies dissemination. Apparently, an important condition for the effective transformation of inventions into innovations, and innovations into competitive advantages is building a network of sustainable relationships between all cluster participants. It is argued that the core of a cluster is the business network organisation concept, the basic tenet of which is acknowledge that enterprise ability to compete successfully is directly affected by a certain set of robust relationships (interaction) of a particular industry. It is specified that the cluster concept goes beyond simple horizontal networks which assumes that companies acting in the common market for finished product within the same industry group tend to combine their potentials and cooperate in the areas of research and development.