Page 60 - Theoretical and Practical Interpretation of Investment Attractiveness

The central small-scale system of the conglomerate cluster infrastructure is considered
an institutional infrastructure, in which the importance of various institutions in the stages of
cluster development is particularly high:
Stage -1. Identifying the ongoing participants of the cluster and developing regional
strategies for economic clustering.
Stage -2. Developing and implementing pilot projects for the priority directions of
cluster development.
Stage -3. Developing and implementing strategic projects for cluster development.
Stage -4. Developing clusters independently and organizing their development.
The high efficiency of relations within the framework of conglomerate clusters
depends on the coordinated and supportive activities of entrepreneurship structures,
associations, councils, chambers, and other entrepreneurship organizations. The internal
cohesion of cluster participants is ensured through ongoing contracts, employee mobility,
information exchange, and more. Participation in joint projects, based primarily on public-
private partnerships unique to conglomerate clusters, is considered crucial.
In this way, clusters represent new forms of independent organization of the economic
system, and cluster policy is seen as an important component of regional policy, playing a
role in the effective implementation of project management within the framework of cluster
development.
During the course of this research, the identification of infrastructural provisions for
local clusters highlights the necessity of organizing development institutions (collaboration)
to consider in regional cluster development programs. One of the main reasons for the
relatively low effectiveness of implementing various measures in the field of economic
clustering in regions is the low level of interaction between the state authorities responsible
for implementing cluster policies and the business structures involved in creating clusters.
Therefore, it is important to determine the need to establish development institutions
(collaboration) between the government and management bodies responsible for
implementing cluster policies and the business entities involved in creating clusters. In this
regard, the scheme presented in Figure 1.4.5 as cluster development factors in regions is
relevant. As indicated, the main factors include production, organizational management,
financial, political, and economic factors. A careful analysis of these factors will ensure the
effective implementation of the cluster development system in regions.

Summary of the first section
1. According to the analysis of global trends, most developed countries show
significant interest in agriculture, and they allocate subsidies/grants from the state budget to
the agricultural sector annually. This is due to the high investment attractiveness of the
agricultural sector compared to other sectors, which leads investors to direct their funds to
this profitable sector. One of the main directions in investment attraction is to take into
account the investment attractiveness of regions and make informed decisions in a
coordinated manner.

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