STEP-BY-STEP MODEL OF CLUSTER DEVELOPMENT: THEORY AND PRACTICE

Abstract

V state rassmatrivaetsya sushchnost termina "cluster", etapy stanovleniya teorii klasterizatsii, osobennosti klasternoy sistemy v promyshlennosti razvityx stran. Analyziruetsya influence of clusters on economic efficiency, ix advantages and disadvantages

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Saidakhmedov, . N. . (2025). STEP-BY-STEP MODEL OF CLUSTER DEVELOPMENT: THEORY AND PRACTICE. International Journal of Political Sciences and Economics, 8(8), 8–12. Retrieved from https://inlibrary.uz/index.php/ijpse/article/view/135612
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Abstract

V state rassmatrivaetsya sushchnost termina "cluster", etapy stanovleniya teorii klasterizatsii, osobennosti klasternoy sistemy v promyshlennosti razvityx stran. Analyziruetsya influence of clusters on economic efficiency, ix advantages and disadvantages


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STEP-BY-STEP MODEL OF CLUSTER DEVELOPMENT: THEORY AND PRACTICE

Saidakhmedov Nemat Khamidovich

Andijan State Technical Institute

Senior Lecturer, Department of Economics

nematjon19602408@gmail.com +998979910403

Abstract:

V state rassmatrivaetsya sushchnost termina "cluster", etapy stanovleniya teorii

klasterizatsii, osobennosti klasternoy sistemy v promyshlennosti razvityx stran. Analyziruetsya

influence of clusters on economic efficiency, ix advantages and disadvantages

Key words:

cluster, clusterization, industrial cluster, competitiveness, innovation, integration,

institutional mechanism, legal basis, governmental policy, regulatory and legal basis, reform

The economic development of our national economy and, on this basis, the material and spiritual

well-being of society members depend on the effective functioning of economic entities and the

improvement of their activities. To achieve this, it is necessary to fully utilize the available

capacities of production enterprises and modernize their operations.

In our country, great attention is paid to the introduction of market relations and experience

tested in international practice, which is of great importance for economic development. One

such example is clusters, and this structure is currently being formed in the textile and light

industries of our economy.

A cluster is a complex of interconnected industrial and service organizations (enterprises,

suppliers, research institutions, and financial institutions) located in a specific territory and

possessing a competitive advantage.

The term “cluster” is a French word, and its Uzbek translation means “claw,” “head,” “bundle,”

“group,” “collection,” or “stagnant.” It is also expressed as a method of selective research.

According to M. Porter, “A cluster is a group of companies and related organizations,

geographically close to each other, interconnected, operating in a certain field, and

complementing each other to achieve a common goal” [5]. A competitive company shapes the

competitiveness of the national economy, and a competitive industry, in turn, ensures and

maintains the country’s competitiveness in the global market.

According to foreign sources, the main approaches to economic clusters are as follows:

economic entities concentrated around a large enterprise or company in a small area;

concentration of enterprises and organizations involved in creating a specific product within a

vertical technological system that fully covers all stages of production, from research to resource

supply, trade, and after-sales service.

Initially, the cluster concept was applied to industrial production. Its founders were Marshall and

Yastremensky, as well as Harvard Business School professor Michael Porter, who popularized

the idea of industrial clusters to enhance regional competitiveness.

The objective conditions for the emergence of this theory were summarized in the well-known

“Competitive Diamond,” developed by M. Porter. In addition to traditional factors—such as the

competitive environment, demand conditions, and the presence of supporting networks—

specialized factors must be created in the given territory, including skilled personnel,

infrastructure, and capital. The creation of these specialized factors requires long-term and


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consistent investments. Although this process is complex, it provides clusters with a competitive

advantage.

The following conditions are necessary for the emergence and functioning of a cluster:

the presence of appropriate structures and infrastructure;

the existence of a formalized organization that performs management functions and ensures the

formation of an information community as a subject of regional development, a network

structure interacting with business entities and local or regional authorities;

the use of modern technologies;

entzepreneurial initiative;

the ability and need for business entities to comprehensively use one or more unifying factors.

At the same time, the process of clustering also has the following advantages and disadvantages.

Table 1
Advantages and Disadvantages of Clusters

Advantages

Disadvantages

reducing costs by solving problems in the

logistics

sector

and

standardizing

approaches in engineering, management,

etc.;

creating additional highly qualified jobs;

increasing tax benefits;

protecting the interests of enterprises within

the cluster;

establishing high-tech production;

coordinating

actions

for

market

development;

high export potential.

Weakness. Specialization creates vulnerability in the

region. Technological disruptions undermine the

cluster’s unique advantages;

Flexibility. Rigid existing structures can delay radical

reorientation and prevent forced restructuring;

Reduction of competitive pressure. Cooperation leads

to a decrease in competitive pressure and the driving

force of innovation;

Self-sufficiency syndrome. Relying on past successes,

the cluster fails to recognize changing trends;

Internal decline. Social capital is necessary to develop

the foundation of activity, but it also undermines and

erodes the social structure that supports it.

At present, developed countries have accumulated significant experience in the use of clusters

for the formation and management of an innovative economy. Clusters are well developed in the

United Kingdom, the Netherlands, Germany, the United States, Denmark, France, Italy, Finland,

and India. Clusters are fully integrated into the industries of Denmark, Finland, and Sweden. In

particular, cluster structures operate successfully in the light industry sectors of Switzerland,


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Austria, Italy, Denmark, India, Korea, Pakistan, China, and Turkey; in the chemical and

mechanical engineering industries of Germany; and in the food and cosmetics industries of

France.

Table 2

Distinctive features of industrial clusters in the field of advanced skills

Countries

Characteristics

USA

There are more than 350 clusters that produce 60% of the U.S. GDP.

Example: the Silicon Valley cluster (which concentrates 50% of the U.S. scientific

and technological potential).

France

About 150 clusters have been created in various sectors of the economy. The

clusters are supported by the government. As a result of economic clustering,

“poles of competitiveness” are formed, which are classified into the global level,

the level of international potential, and the national level.

Germany

Many clusters emerged spontaneously. There are 19 clusters in the field of medical

technologies, 18 in energy and ecology, and 4 in information technologies. More

than 340 universities and 330 research institutes conduct research in the fields of

medical technologies and pharmaceuticals.

Russia

Clusters were first established in 2006, including 38 industrial clusters, 4 of which

are interregional.

Examples include:

“Comprehensive Coal and Industrial Waste Processing” (Kemerovo Region)

Technopolis “New Star” (Perm Territory)

“Kama Innovative Territorial-Production Cluster” (Republic of Tatarstan)

“Clean Technologies Cluster for the Suburbs of St. Petersburg” (St. Petersburg)

The United States holds a leading position in the global economy, where 60% of GDP comes

from clusters. Despite the relatively late adoption of this organizational model, Russia already

has 38 industrial clusters for production organization; however, as mentioned earlier, the scale of

clustering needs to be expanded [7].

The process of cluster formation is actively developing in Southeast Asia, China, Singapore,

Japan, and other countries.

In Germany, until recently, cluster development proceeded without government intervention. In

2003, the government began to pay serious attention to cluster initiatives, primarily in the design

of high-tech industries. The government aims to unite the efforts of industrial and scientific

centers [8].

Clustering is a group of firms concentrated in one geographic area and aimed at achieving a


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specific task, closely interconnected with each other, combining their workforce to enhance

collective competitiveness.

The formation of cluster structures for the development of each region opens up new

opportunities for creating additional jobs, increasing local budget revenues, decentralizing

powers, interacting with business structures, accelerating information exchange and promoting

innovations, enhancing the innovation activity of small businesses and private enterprises,

increasing the innovative attractiveness of regions, and diversifying the regional economy. A

cluster consists of various entities, facilities, and activities that are united to produce and deliver

a wide range of products, works, and services.

The algorithm for creating clusters in the regions is presented in three stages:

Stage 1 (Initial):

Justification of the need to create a cluster;

Assessment of clustering potential and identification of cluster initiatives;

Development of a program for the implementation of cluster projects.

Stage 2 (Main):

Formation of a coordination center;

Defining the goals and objectives of the cluster;

Determining the composition of cluster participants;

Development of relationships between cluster participants;

Implementation of the cluster development program.

Stage 3 (Final):

Evaluation of the cluster’s effectiveness;

Updating the cluster development program.

The beginning of scientific research on clusters in Uzbekistan dates back to the 2000s, while

scientific and practical work in this area began with the Action Strategy for the Five Priority

Areas of Development of the Republic of Uzbekistan for 2017–2021, adopted at the initiative of

the President of the Republic of Uzbekistan Shavkat Mirziyoyev. This strategy includes large-

scale reforms in all areas to deepen democratic transformations and enhance the competitiveness

of the national economy through the modernization and diversification of leading industries [9].

At present, one of the urgent requirements of the time in Uzbekistan is the accelerated

development of logistics, clusters, innovation activities, and digitalization, which has become

one of the priority directions of the state economic policy.

REFERENCES:

1.

Decree of the President of the Republic of Uzbekistan No. PP-4498, 2019.

2.

Decree of the President of the Republic of Uzbekistan No. PP-60, 2022.

3.

Law “On Industrial Policy,” 2020.

4.

Stat.uz – Data of the State Committee on Statistics of the Republic of Uzbekistan.

5.

Relevant regulatory documents of the Ministry of Finance and the Ministry of Economy

and Finance.

6.

Current international experience: Industrial clusters in South Korea, Turkey, and Poland.

7.

Enright, M. (1996). “Regional Clusters and Economic Development: A Research

Agenda,” in Staber, U., Schaefer, N., & Sharma, B. (Eds.), Business Networks: Prospects for

Regional Development. Berlin: Walter de Gruyter, pp. 190–213.

8.

Marshall A. Principles of Economics, I–III. Trans. from English. Moscow: Progress

Publishing Group, 1993.

9.

Saidakhmedov, N. (2024). Theoretical and Conceptual Foundations of Employment


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Instability (Precarization). International Scientific and Practical Conferences of AndMI, 1(1),

332–336.

10.

Sаidаkhmеdоv, N. (2023). Privаtе prоpеrty, smаll businеss аnd privаtе еntrеprеnеurship–

undеr stаtе prоtеctiоn. Sciеntific prоgrеss, 4(2), 319

References

Decree of the President of the Republic of Uzbekistan No. PP-4498, 2019.

Decree of the President of the Republic of Uzbekistan No. PP-60, 2022.

Law “On Industrial Policy,” 2020.

Stat.uz – Data of the State Committee on Statistics of the Republic of Uzbekistan.

Relevant regulatory documents of the Ministry of Finance and the Ministry of Economy and Finance.

Current international experience: Industrial clusters in South Korea, Turkey, and Poland.

Enright, M. (1996). “Regional Clusters and Economic Development: A Research Agenda,” in Staber, U., Schaefer, N., & Sharma, B. (Eds.), Business Networks: Prospects for Regional Development. Berlin: Walter de Gruyter, pp. 190–213.

Marshall A. Principles of Economics, I–III. Trans. from English. Moscow: Progress Publishing Group, 1993.

Saidakhmedov, N. (2024). Theoretical and Conceptual Foundations of Employment Instability (Precarization). International Scientific and Practical Conferences of AndMI, 1(1), 332–336.

Sаidаkhmеdоv, N. (2023). Privаtе prоpеrty, smаll businеss аnd privаtе еntrеprеnеurship–undеr stаtе prоtеctiоn. Sciеntific prоgrеss, 4(2), 319