THE IMPORTANCE OF THE CLUSTER METHOD IN THE DEVELOPMENT OF THE UZBEKISTAN ECONOMY

Abstract

This article discusses the essence and significance of the cluster method in the development of the country's economy. The importance of the cluster in the economy of a developed country is described, the types and features of the cluster are presented, and the main goals and results expected from the introduction and development of innovative clusters in the regions.

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Khajiyeva Nazokat Davronbekovna. (2023). THE IMPORTANCE OF THE CLUSTER METHOD IN THE DEVELOPMENT OF THE UZBEKISTAN ECONOMY. American Journal of Philological Sciences, 3(06), 58–65. https://doi.org/10.37547/ajps/Volume03Issue06-09
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Abstract

This article discusses the essence and significance of the cluster method in the development of the country's economy. The importance of the cluster in the economy of a developed country is described, the types and features of the cluster are presented, and the main goals and results expected from the introduction and development of innovative clusters in the regions.


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Volume 03 Issue 06-2023

58


American Journal Of Philological Sciences
(ISSN

2771-2273)

VOLUME

03

ISSUE

06

P

AGES

:

58-65

SJIF

I

MPACT

FACTOR

(2022:

5.

445

)

(2023:

6.

555

)

OCLC

1121105677















































Publisher:

Oscar Publishing Services

Servi

ABSTRACT

This article discusses the essence and significance of the cluster method in the development of the country's economy.

The importance of the cluster in the economy of a developed country is described, the types and features of the cluster

are presented, and the main goals and results expected from the introduction and development of innovative clusters

in the regions.

KEYWORDS

Cluster, informatization, competition, competitiveness, integration, clustering, innovation, capital, economy,

investment, industry group, innovation cluster, motivation, entrepreneurship.

INTRODUCTION

In the world, the rapid introduction of informatization

processes into economic sectors is considered as the

main means of development of integration processes

in the economy. Integration processes in the economy

contribute to the processes of strengthening and

increasing the competitiveness of enterprises, regions

and countries as a whole, which unite the sellers,

suppliers and consumers of production and services

and products by mastering new regional markets and

establishing a network of enterprises as a driving force

of development.

Research Article

THE IMPORTANCE OF THE CLUSTER METHOD IN THE DEVELOPMENT OF
THE UZBEKISTAN ECONOMY

Submission Date:

June 05, 2023,

Accepted Date:

June 10, 2023,

Published Date:

June 15, 2023

Crossref doi:

https://doi.org/10.37547/ajps/Volume03Issue06-09


Khajiyeva Nazokat Davronbekovna

Muhammad Al- Khorazmi Tashkent Information In The Name Technologies University " Management And
Marketing" Department Assistant, Uzbekistan


Journal

Website:

https://theusajournals.
com/index.php/ajps

Copyright:

Original

content from this work
may be used under the
terms of the creative
commons

attributes

4.0 licence.


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The economies of developed countries are based on

the activities of the largest integrated enterprises,

which operate on the basis of strong cooperation with

small business structures. Today, the economy of

developed countries has moved to an innovative type

of development. At the macro level, integration is

carried out in the economy of this country through the

formation of economic blocs - clusters. Clusters are

made up of firms and organizations related to final

product production and geographic location. Clusters

should be considered as places of concentration of

human capital, scientific, innovative and production

potential. Clusters will be stable, systematically

developed and competitive only when there is such a

combination [1]. In foreign countries, clusters have

already become a leading system in all sectors of the

economy. Clustering serves as a new aspect of world

economic development. Clustering covers more than

50% of the economy of leading countries . For example,

there are more than 2 thousand clusters in the

European Union. They cover 38% of the workforce. This

method has been fully implemented in the industries of

Denmark, Finland, Norway and Sweden. In the US, 32%

of people in the private sector work in clusters, and in

Sweden, 39% of working-age citizens work in clusters.

More than 60% of the country's exports are produced

in Indian clusters[2].

A cluster is a set of economic entities of various

interdependent

sectors,

whose

elements

are

interconnected and interdependent, and which work

together towards a specific goal, united in a single

organizational structure. The formation of effective

technological chains from several independent

business entities is a strategic process, and their

implementation

primarily

requires

long-term

investments, and a positive indicator is achieved as a

result of the conditions created for potential systems

and the effective use of existing opportunities. In order

to develop the cluster system, it is first necessary to

create a system of additional benefits for each of the

business entities operating in mutual cooperation, and

to create certain incentive mechanisms to form a single

activity system that provides a unified system.

It should be noted that the cluster development of the

economy is a specific business tool. In an economy

based on a market economy, the activities of business

entities are shaped by certain rules, laws, relations, the

banking sector, support systems and many other

infrastructural objects. Therefore, the cluster formed

within the framework of these rules will consist of a

specially organized space that allows for the successful

development of a complex of organizations consisting

of large firms, small enterprises, suppliers and service

enterprises, infrastructure facilities, scientific centers

and universities [3].

Clusters are a set of firms participating in a specific

market united on the basis of long-term contracts in

order to effectively use resources and existing internal


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capabilities for the implementation of innovative

projects in cooperation [4].

In order to understand the essence of the content of

clusters, we will highlight its specific features.

According to the research conducted by foreign

experts, clusters can be represented by the following

indicators: research and development opportunities;

workforce skills; development of labor potential;

proximity of suppliers; availability of capital; access to

specialized services; relationships with equipment

suppliers; interconnected structures; intensity of

network formation; entrepreneurial spirit; innovation

and learning; team thinking and leadership.

A distinctive feature of a cluster is targeted

entrepreneurial activity in a certain direction. Within

the framework of the cluster, not only production and

service enterprises, scientific research centers,

universities,

but

also

innovative

business,

comprehensive management of product quality, and

after-sales service enterprises are united. Unification of

the efforts of entrepreneurs, state bodies, scientific

research centers, universities, investment and

innovative activity entities in a certain area gives,

above all, significant competitive advantages,

rationalization of production and market processes,

redistribution of business risks and necessary in rapidly

changing conditions in the external environment. helps

implement flexible policies.

Today, the use of the cluster approach in the world

practice is considered as one of the most effective

methods of socio-economic development of regions,

activation of investment policy, increase of export

potential and expansion of foreign economic relations,

development of free entrepreneurship.

The experience of developed countries shows that the

task of ensuring the technological competitiveness of

enterprises based on combining the resources of high-

tech industries with the potential of the scientific-

research sector is effectively solved within the

framework of clusters [5].

Therefore, during the last decades, the cluster concept

of socio-economic development occupies a leading

position in the world economy and determines the

prospects of increasing the competitiveness of

regions.

The introduction and use of the cluster system in the

world community is growing rapidly, and clusters are

becoming the main component of the socio-economic

development plans of countries and regions.

A cluster or industrial group is a group of interrelated

companies and related organizations operating in a

certain area characterized by common activities and

complementing each other[6].

There are three main types of clusters in world

practice;


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regional (territorial associations of scientific or

industrial centers located in a certain area);

vertical (associations within a single production

process, for example, the "raw material supplier -

manufacturer - marketer - customer" chain);

horizontal (unification of various industries into

one megacluster, for example, "Agro-industrial

cluster introduced in Uzbekistan").

While clusters were initially used by developed

countries to study competitiveness issues, this

approach has over time been used to address broader

issues, including:

in the analysis of state, region, industry

competitiveness;

as a basis of national industrial policy;

in the development of regional development

programs;

as a basis for stimulating innovation;

began to be used as the basis of mutual relations

between large and small enterprises [7].

As a result, according to international practice, Provard

has become a hub or centers that attract residents by

specialization, clusters formed around scientific

centers and enterprises cooperating with universities.

The conditions for the formation of effectively

functioning clusters in practice can be mentioned as

follows:

1.

Existence of competitive enterprises. The

following can be indicated as indicators of

competitiveness:

relatively

high

level

of

productivity of the companies and industries

included in the cluster; high level of export of

products and services; economic indicators of

companies.

2.

Availability of competitive advantages in the region

for cluster development. For example, convenient

geographical location; access to raw materials;

availability of specialist personnel, suppliers of

components and related services, specialized

educational institutions and educational programs,

specialized organizations conducting research and

development, necessary infrastructure and other

factors.

3.

Geographic concentration and proximity. Cluster

participants are geographically close to each other

and have opportunities for active interaction.

Geographical location may vary depending on the

type and characteristics of the cluster and may

cover one or more regions of the country. Various

indicators describing the high degree of

specialization of a particular area can be seen as

indicators of geographic concentration.

4.

Availability of a certain number of participants. A

cluster may consist of companies that produce

final products and services that are usually

exported outside the region, suppliers of

components, equipment, and services, as well as


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educational

institutions,

research

centers,

universities, and other supporting organizations.

5.

Communication and cooperation between cluster

members is one of the main success factors. These

relationships are formalized relationships between

the parent company and suppliers, between

suppliers themselves, cooperation with suppliers

of equipment and specialized services; it can be in

the form of relations between companies,

universities and research institutes within the

framework of cooperation on the implementation

of joint scientific research and educational

programs [8].

In practice, a complex combination of competition and

cooperation is formed in innovative processes in

clusters operating in practice. Taking into account the

specific characteristics of the field, the following types

of clusters are distinguished[9]:

1.

Discrete clusters include enterprises producing

products consisting of discrete components,

including enterprises of the automobile industry,

aviation industry, shipbuilding, engine industry,

and other branches of the machine-building

complex. As a rule , these clusters consist of small

supplier companies developing around assembly

plants and construction organizations.

2.

Technological clusters are formed by enterprises

belonging to so-called technological industries,

such as chemical, pulp and paper, metallurgical

industry, as well as agriculture, food industry, etc.

3.

Innovation clusters are developing in so-called

"new sectors" such as information technologies,

biotechnologies, new materials, as well as in

service areas related to the implementation of

creative activities. Innovation clusters include

many new companies emerging in the process of

commercialization of technologies and results of

scientific activities implemented in higher

education institutions and research organizations.

4.

Tourist clusters are formed on the basis of tourism

assets in the area and consist of enterprises of

various sectors related to tourism services, for

example, tour operators, hotels, catering sector,

souvenir manufacturers, transport enterprises,

etc.

5.

Transport-logistics clusters include a complex of

infrastructure and companies specializing in the

storage, tracking and delivery of goods and

passengers. The cluster may also include

organizations

providing

services

to

port

infrastructure facilities, companies specializing in

sea, river, land, air transport, logistics complexes

and others. Transport-logistics clusters are

developing in areas with great transit potential.

6.

Mixed-type clusters can combine features of

several types of clusters.


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Today, the main feature of the cluster is its innovative

direction. A clear example of this is the US experience

of supporting and encouraging the formation of

innovation clusters - Silicon Valley. The world-famous

cluster in the USA called "Silicon Valley" is enviable. It

includes 87,000 companies, 40 research centers and

dozens of universities. This innovative cluster

infrastructure is served by 180 venture firms, 47

investment and 700 commercial banks [10] .

There are many companies operating in the field of

electronics and information technology in Silicon

Valley. It has become a technology hub in Silicon Valley,

employing more than 386,000 IT professionals. That's

about 40% of IT engineers working in the US.

Innovation clusters can be formed on a regional scale

with a high concentration of interconnected industries.

At the same time, the direction of the innovative

cluster is showing that it is promising for the national

economy.

Recently,

innovation

clusters

of

enterprises

specializing in high-tech industries are developing

more rapidly than industrial clusters. The most

prominent examples of innovation clusters are: USA-

Silicon Valley, China-National Model Innovation Zone,

India-Software Technology Parks of India-STPI, Russia-

Skolkovo Innovation Center, Israel-Silicon Wadi,

Belarus-High Technology Park[11] .

Unlike the industrial cluster, the innovation cluster

focuses on the creation and technological application

of know-how, and the wide use of knowledge and skills

accumulated within the cluster companies. The

innovation cluster differs from other forms of

economic associations in that the cluster companies do

not merge completely, but create a mechanism of

mutual cooperation within and outside the cluster,

which allows them to retain the status of a legal entity

and at the same time cooperate with other enterprises.

The implementation of the cluster method in

Uzbekistan is being implemented on the basis of

decisions made in recent days. First of all, consistent

measures are being taken to reform the agrarian sector

in our country using the cluster method, to introduce

market mechanisms and modern technologies to it. By

the decree of the head of our state dated October 23,

2019, the strategy for the development of agriculture

of the Republic of Uzbekistan for 2020-2030 was

adopted. In accordance with it, cotton and fruit and

vegetable clusters are being organized in order to

produce products with high added value[12].

In response to the tasks imposed by the decision of the

President of the Republic of Uzbekistan dated May 19,

2017 "On measures to create a modern cotton-textile

cluster in Bukhara region" PQ-2978 "Bukhara Cotton

Textile" Uzbekistan-British JV, which covers the system

from cotton planting to deep processing, further

develops textile and light industry, embodies life


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experience, skills and knowledge of scientists,

production specialists, economists from various fields

of science and education, " 123.1 mln. of Paraglide LTD"

JV and "Petromaruz" (Russia). With the introduction of

foreign investments in the amount of US dollars, the

first innovative "Cotton - textile cluster" complex was

launched[13].

A few years ago, clusters were created only in the

agricultural sector, but now they are appearing in other

sectors as well. In our opinion, the introduction of an

innovative cluster is of great importance in the socio-

economic development of our country .

An innovation cluster is formed as a collection of

innovative activity subjects, consumers of innovative

activity results, participating in the creation of

innovations in the relevant area, without establishing a

legal entity, and the main goal of these subjects,

consumers is to provide a share in innovative activities

through effective cooperation, joint use of resources,

and the exchange of knowledge and skills, as well as

the transfer of technologies. will consist of stimulating

activity[14].

The main goals expected from the introduction and

development of the innovation cluster are as follows:

Implementation of an innovative cluster for

information services and creation of a chain of

interested enterprises;

creation of new innovative services and products;

to combine the potential of subjects of innovative

activity in the field of science, education and

production to satisfy market needs;

training and retraining of personnel related to the

activity of innovative clusters;

formation of a portfolio of orders related to the

creation of innovations in information services;

support the establishment of new industries and

enterprises specializing in the production of new or

improved developments;

increase investment attractiveness of regions;

increase the export potential of the regions for

providing information services;

joint promotion of the results of innovative

activities in the market.

Introduction of innovation cluster in the regions, the

introduction of cluster technologies to unite

enterprises for the purpose of implementing a certain

innovation process serves to increase business activity,

improve the investment environment in the regions of

our country, develop social, economic, information and

integration systems, which, in turn, accelerates the

development of entrepreneurship. , attracting

investments and giving more impetus to the economic

recovery of the regions.

REFRENCES

1.

Porter M. Competition. M.: Williams, 2003. 496

c.


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2.

Lavrikova Yu.G., Akberdina V.V., Suvorova A.V.

Soglasovanie

priorityov

nauchno-

technologicheskogo

i

prostranstvennogo

razvitiya industrialnyx regionov // Ekonomika

regiona. 2019. T. 15. Vyp. 4. S. 1022

1035.

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Akhmedov A.E., Smolyaninova I.V., Shatalov

M.A. Corporate finance. Voronezh, 2015.

180

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the Republic of Uzbekistan for 2020-2030 No.

PF-5853 www.Lex.uz

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Decision No. PQ-2978 of the President of the

Republic of Uzbekistan dated May 19, 2017 "On

measures to create a modern cotton-textile

cluster in the Bukhara region". www.Lex.uz

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Activities " dated July 24, 2020 ORQ-630

www.lex.uz.

15.

Khojieva , N. D. (2020). CLUSTER APPROACH IN

INCREASING THE COMPETITIVENESS OF THE

NATIONAL ECONOMY. Academic research in

educational sciences , (4), 328-333.

16.

Davronbekovna , KN, & al-Khwarizmi, M. THE

CLUSTER APPROACH AS A SYSTEM OF

INNOVATIVE

DEVELOPMENT

OF

THE

ECONOMY.

References

Porter M. Competition. M.: Williams, 2003. 496 c.

Lavrikova Yu.G., Akberdina V.V., Suvorova A.V. Soglasovanie priorityov nauchno-technologicheskogo i prostranstvennogo razvitiya industrialnyx regionov // Ekonomika regiona. 2019. T. 15. Vyp. 4. S. 1022–1035. https://doi.org/10.17059/2019-4-5

Akhmedov A.E., Smolyaninova I.V., Shatalov M.A. Corporate finance. Voronezh, 2015. – 180 p.

Bykovsky V.V. Razvitie konseptsii adaptivnogo upravleniya promyshlennym predpriyatiem v innovationno-orientirovannoy economie// Uspekhi sovremennoy nauki. 2015. No. 1. S. 48-50.

Cluster Mapping / Harvard Business School; US Economic Development Administration. URL: https://clustermapping.us/.

The European Cluster Collaboration Platform / European Union. 2020. URL: https://www. clustercollaboration.eu/cluster-mapping.

Regional Studies Association. URL: https://www.regionalstudies.org/publications/ .

Köcker GM, Müller L. Cluster Programs in Europe / European Cluster Observatory Report, European Commission. 2015. 36 r. URL: https://ec.europa.eu.

Vasilenko N.V. Digital economy: concept and reality // Innovative clusters and digital economy: theory and practice: tr. Nauch. practice _ conf . s mejdunar . May 17-22, 2017 / pod ed. It 's Dr. Nauk, Prof. A.V. Babkina. SPb.: Izd-vo Polytechnic . un-ta, 2017. S. 147–151.

Snarskaya A.V. Classification of institutional factors of investment process // Uspekhi sovremennoy nauki. 2015. No. 1. S. 56-58.

Davydova E.Yu. Mejdunarodnye investitsii // Territory science. 2014. No. 4. S. 46-48.

Decree of the President of the Republic of Uzbekistan dated October 23, 2019 on the strategy for the development of agriculture of the Republic of Uzbekistan for 2020-2030 No. PF-5853 www.Lex.uz

Decision No. PQ-2978 of the President of the Republic of Uzbekistan dated May 19, 2017 "On measures to create a modern cotton-textile cluster in the Bukhara region". www.Lex.uz

Activities " dated July 24, 2020 ORQ-630 www.lex.uz.

Khojieva , N. D. (2020). CLUSTER APPROACH IN INCREASING THE COMPETITIVENESS OF THE NATIONAL ECONOMY. Academic research in educational sciences , (4), 328-333.

Davronbekovna , KN, & al-Khwarizmi, M. THE CLUSTER APPROACH AS A SYSTEM OF INNOVATIVE DEVELOPMENT OF THE ECONOMY.