The stages of the life cycle of economic clusters: state, driving forces and processes

Abstract

The modern economy is viewed as a set of clusters. Experience of cluster stimulation has shown that cluster policy should be based on a systemic presentation of the clusters as object of governing. Purpose of the article is to describe the life cycles of cluster. Cluster has the following developmental stages: agglomeration, emerging cluster, developing cluster, mature cluster and downturn. Each stage has its own features of reached state, driving force and direction of changes. Mature cluster provides bright cluster effects, high competitiveness and innovation; it provides developed markets of the final product and factors of production, effective information exchange mechanisms. Driving forces of cluster are the strong competition and developed cooperation, and effects of social capital; the cluster is capable of playing the role of "growth pole" of the territory. As a whole understanding of inner structure (composition and connections) and dynamics of development is highly important for design of a cluster policy. Determining the stage of the developed cluster state must be one of the first steps of the development of cluster policy. These factors must be in mind at selection of the tools of cluster policy and measures of cluster support.