Improvement of the system of state regulation of cluster functioning in the economy of the regions of Ukraine

Keywords: government regulation, clusters, development, system, tools, economics, politics, coordination council, strategy

Abstract

The article proposes to consider the functioning of clusters under state regulation as a purposeful and active influence of public authorities on their activities through the use of mainly market levers of economic regulation using a set of specific forms and methods. The main tasks of business entities in the process of cluster operation are substantiated. Systematized measures to improve the system of state regulation of clusters: improvement of the existing regulatory framework for clusters; formation of a favorable institutional environment for the functioning of clusters; creating a competitive environment for clusters; the use of direct and indirect financial methods of regulating the activities of clusters, which will contribute to the formation of a sufficient volume and effective use of their financial capital. It is established that cluster management should be based on the principles of integrity, coherence, planning and efficiency. It is important to apply the principle of systematization in the management process, which allows to determine the structure of the problem, the direction and system of its solutions, the relationship of system components and the order of their improvement. Therefore, it is expedient to appoint a Coordinating Council as a subject of cluster management, which should include managers and representatives of production, research, financial organizations-members of the cluster on equal terms as coordinators of certain areas of development of the integrated association. The Coordinating Council acts as an institution that creates favorable parameters of the factors of the cluster. This is primarily due to the fact that businesses, like market economies, do not have innate immunity to monopolies, inflation and downturns, they can not solve complex regional problems arising from the influence of non-market factors. The object of control in the cluster are the structural subsystems and elements of the cluster, between which there are complex multi-stage relationships. Changing any relationships and interdependencies necessitates a revision of the integrated structure management strategy, but should not affect the end results of the cluster's functioning as a whole.

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Published
2020-10-29
How to Cite
Shestakovska , T., & Grivko , S. (2020). Improvement of the system of state regulation of cluster functioning in the economy of the regions of Ukraine. Public Administration Aspects, 8(4), 97-106. https://doi.org/10.15421/152084
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Article