Management of cluster institutions development

Nowadays, the term “cluster” refers to a territory’s competitiveness, innovation and industrial policy, and positive economic effects. In research literature, great attention is paid to the industrial infrastructure of clusters (technoparks and business incubators). However, cluster development depends not only on technical support, but also on the institutional environment, which has been studied less thoroughly. The paper aims at identifying and evaluating crucial factors that determine the evolution of institutions in interfirm relations characterized by clustering. Fundamental cluster institutions are considered, key parameters and factors underlying functioning of these institutions are examined. A series of hypotheses was proposed about correlations between parameters and factors within each institution to be tested at Ural biopharmaceutical enterprises. The results obtained are presented as interrelations between parameters and factors, which make it possible to determine the most crucial factors for cluster development. Particularly, such factors as reputation, fulfilling of contractual obligations, communication costs, shared activity coordination, shared infrastructure, business meetings and learning processes are recognized as important, while such factors as administrative leverage, geographical proximity, and also human, management and production capacity appear to be irrelevant to interfirm relations in the cluster.