PROBLEMS AND PROSPECTS OF CLUSTER DEVELOPMENT IN UKRAINE
Abstract
Ukraine's economy is currently facing the most severe challenges in its history. All available opportunities should be used to ensure Ukraine's post-war recovery and stabilize the market situation. In this context, cluster development has a significant potential to increase economic efficiency, resilience of enterprises and reduce their vulnerability. The main problems of cluster development are insufficient government support, weak interaction between business, science and government, and a lack of financial resources for innovation initiatives. Underdeveloped infrastructure and the lack of a clear legislative framework also hinder cluster development. Lack of experience in cluster management and limited opportunities for attracting external investment make it difficult to create and develop effective clusters. These factors are exacerbated by the unstable political and economic situation in the country, which reduces the attractiveness of the country to investors. Despite all the challenges facing the country, Ukraine has significant prospects for the development of clusters in such industries as IT, engineering, green energy, and high-tech manufacturing. The key prospects for successful cluster development are to expand international cooperation, attract foreign investors and partners, and create reliable conditions for investment. This will facilitate the introduction of the latest technologies, improve product quality and strengthen positions in the international market. An important factor is the development of human capital and the creation of a system for training highly qualified specialists capable of working in innovative sectors of the economy. The development of small and medium-sized businesses (SMEs), which are often the backbone of clusters, also plays a crucial role in this process, as a source of flexibility, innovation, and adaptability to changing market conditions. If the existing prospects are effectively realized, cluster development can become a powerful driver of Ukraine's economic growth and facilitate its integration into the global economy.
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