Regional Formation and Development Studies

Cluster development is one of determinants used in the regional competitiveness that are related to the presence of competitive local suppliers and competitive local industries in the regional economy. The correlation analysis permits to conclude that regions, which are more competitive, have more developed clusters and regions with more developed clusters are more competitive. However, the comparison between competitiveness and cluster development of particular regions reveal that the impact of clusters on competitiveness can differ across regions and countries, thus creating challenges for policy makers. The paper focuses on the evaluation of the clusters’ approach in promoting regional productivity, innovation and economic growth leading to increased competitiveness, yet arguing that the targeted cluster development can foster structural change leading to improved economic performance, as well as welfare.