Innovative Сlusters as a Еool for the Transformation of Single-Industry Cities: Russian Experience and International Parallels

The article explores the role of innovative clusters in transforming single-industry towns (monotowns), whose economies historically depend on one or several core enterprises. Using case studies from Russia (e.g., Tolyatti, Samara Region) and international parallels (Canada, South Korea, Belarus), the study analyzes mechanisms for integrating small and medium-sized enterprises into production chains, as well as state and regional support measures. The aim is to identify key success factors for cluster models and propose recommendations for sustainable territorial development.The focus is on small and medium-sized enterprisescooperation with large businesses, digitalization of management, and hybrid financing. The research demonstrates that clusters foster economic diversification, reduce unemployment, and stimulate innovation. However, their effectiveness depends on overcoming bureaucratic barriers, uneven resource distribution, and monopolization risks. Examples such as the “Zhigulevskaya Valley” technopark in Tolyatti and the IT cluster in Puchon (South Korea) highlight the importance of adapting international practices to local contexts.Measures to strengthen clusters are proposed, including digital platforms for cooperation, tax incentives for spin-offs, and educational programs. The government’s role in creating infrastructure (business incubators, technoparks) and attracting private capital is emphasized. The article argues that cluster models not only address economic challenges but also serve as tools for social stabilization, transforming monotowns into hubs of technological and environmental innovation. The findings can inform regional strategies that combine innovation, cooperation, and sustainable development.