The cluster development potential of a regional economy

Abstract

The paper discusses approaches to the formation of industrial clusters in Russian regions and proposes a methodological structure for a clustering project. A case study of a titanium processing cluster (“Titanium Valley”) and a Ural automobile cluster, being developed in Sverdlovsk oblast, is used to reveal their key design elements: the justification for the cluster form of business organization, the evaluation of development premises, the description of cluster goals, tasks, structure, and composition, the project control mechanism and implementation phases, and government support measures. The “Titanium Valley” pilot project was worked out by these authors pursuant to Russian Minister of Economic Development and Trade order No. GG-34 of August 16, 2007, “On the Joint Preparation by the Russian Ministry of Energy and the Sverdlovsk Oblast Government of a Concept for a Titanium Processing Industrial Cluster (“Titanium Valley”) and Its Submission for Consideration to a Russian Government Meeting.” These authors developed a concept for the Ural Automobile Cluster under an economic contract between the Institute of Economics, Ural Division of RAS, and ZAO Ural Automobiles and Engines.