Institutional aspects of the cluster development of the regional economic system

Abstract

© Beilin et al. Purpose: The heterogeneity of the economic space has intensified in recent years in the process of transition and laying the foundations of a market economy in the CIS countries, as well as in the EU regions, due to its expansion. This unevenness was manifested as a result of different starting levels of economies, different resource endowments, the choice of their targets and priorities for socio-economic development, and the increased authority of local authorities. Methodology: This is analytical-logical research that has been done through content analysis and documentary and library research. Result: Problems of market fiasco in the regions, as well as the important role of local institutions in regional development are also noted in the EU and serve as a strong argument for the need for government intervention in regional policy, primarily from the standpoint of regulating the innovation sphere, financial assistance to create jobs or clusters capable of self-development. Applications: This research can be used for universities, teachers, and students. Novelty/Originality: In this research, the model of Institutional aspects of the cluster development of the regional economic system is presented in a comprehensive and complete manner.