On the role of industrial cluster in regional economy development

The article highlights the advantages of cluster development of the regions’ economies. Nowadays all regions of our country have the task to increase the efficiency of production, to improve the welfare of the population and to introduce an innovative way of development. World experience has shown that a cluster approach to structuring the national economy and regional economic systems is an essential condition for increasing production efficiency, competitiveness of the regional economy and improving the welfare of the population. Analysis of industrial production in the economy of the Republic of Kalmykia over the past two decades indicates that the region presents a striking example of de-industrialization. It means that the economy should have a strong state support for its development. The revealed problems of the development of the region’s industrial sector push to create and develop an industrial cluster in order to revive industry. Moreover, the state should support companies that make up the core of the cluster as well as infrastructure enterprises, such as educational institutions, investment funds, insurance companies and financial institutions. A coordination council should manage the cluster. Its task will involve the arrangement of the dialogue between representatives of industrial enterprises, resource suppliers, representatives of educational and scientific institutions whose interests coincide with the tasks of the cluster. Nowadays the heads of all regions have the task to form and develop territorial clusters. It is obvious that the cluster development of the industrial sector will be the best way for revival and development of the economy of the Kalmyk Republic.