Abstract

The possibility of development of one-industry towns of old industrial regions of Ukraine based on cluster approach is investigated in this paper. The system of organizational and economic support of the infrastructure enterprises management is proposed. The main characteristics of clusters, which are factors in the decision on the rehabilitation of depressed areas and towns are highlighted. The aim of the article. The aim of the article is to find out the possibility of clustering at the level of single-industry towns of old industrial regions of Ukraine and to analyze possible influence of these clusters on the development of such towns. The results of the analysis. It should be noted that single-industry town has several different characteristics from poly-industry towns, namely: 1)     presence of great dependence of town budget revenues deductions  from of township-forming enterprises; 2)     there is a great threat to the termination of activity of the township-forming enterprises of one branch, that will directly affect the general state of economy of the town. The single-industry town as the socio-economic system certain has two subsystems of different level of complication: town-forming and town-serving subsystem. If the town-serving enterprises are  those that are important for the town and are the basis of the urban economy, than the town-forming enterprises affect the location of this town in the town system. In this case, the town economy as a set of economic relations which arise on the production, distribution, exchange and consumption of material goods and services, contains also the relationships that arise between the two subsystems. In the conditions of expansion of rights concerning self-government of local communications exactly the last relations become the decisive factor of stable development of the town. The classification of the institutional framework of the social and economic infrastructure of the single-industry towns is presented in this paper. Also the system of organizational and economic support of management of the enterprises of infrastructure of the town is offered. The appearance, the active introduction and development of clusters is a new approach to the formation of a modern regional economy. So, for the conditions of industrial regions and their single-industry towns the modified scheme of organizational interaction of clusters (business structures) with the market environment is proposed. Cluster mechanism for increasing competitiveness in the process of transformation of the regional-industrial complex within the framework of rehabilitation of single-industry towns is based on the effective merger of competition and cooperation which are on different planes, however, are complementary, especially in the innovative transformation (restructuring, reengineering) business processes|. Conclusions and directions for further research. Thus, there is an urgent necessity of improvement, stabilization and development of single-industry towns through the proper use of cluster ideology, which must be used at all levels of the town life in the country. Today, therefore, it is important to study foreign experience in creation of clusters at the small town level and on this basis to offer “Ukrainian” approach to clustering single-industry towns.

Keywords: single-industry town, cluster, infrastructure of city, competitiveness of city, sustainable development

JEL Classification: O18, P42, R38, R58.

Cite as: Dubnitskiy V. & Lunina, V. (2015). Development of single-industry towns on the basis of cluster approach. Marketing and Management of Innovations, 3, 140-148. https://doi.org/10.21272/mmi.2015.3-12

This work is licensed under a Creative Commons Attribution 4.0 International License

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