INSTITUTIONAL OBSTACLES TO THE DEVELOPMENT OF INDUSTRIAL CLUSTERS IN UKRAINE
Abstract
The purpose of this article is to analyse and systematise the institutional obstacles that hinder the development of industrial clusters in Ukraine. The article is aimed at developing practical recommendations for overcoming these obstacles, which will improve the competitiveness of Ukrainian regions and contribute to the formation of favourable conditions for their innovative and sustainable economic development.
During the period of the Russian Federation's full-scale invasion of Ukraine, due to the significant destruction and the need to relocate industrial facilities to safer regions, the regions bordering the EU have become particularly important. These regions provide convenient logistics infrastructure and help support critical Ukrainian industries. Poland, in particular, plays a key role as a transit corridor for Ukraine's imports and exports, which is especially important in times of war, as goods and raw materials necessary for the functioning of industrial sectors pass through its territory.
The study identifies key institutional barriers, including outdated legislative frameworks, insufficient state support, and limited access to funding for cluster initiatives. Furthermore, the absence of a unified national strategy for cluster development and inadequate coordination between central and regional authorities create significant challenges. Another important issue is the lack of harmonisation between Ukrainian and EU standards, which limits the potential for international cooperation and integration into global value chains.
To address these issues, the article suggests a comprehensive approach that includes the development of a clear national policy on clusterisation, the implementation of financial incentives for industrial partnerships, and the promotion of cross-border cooperation. Special attention is given to creating mechanisms for public-private partnerships and fostering collaboration between academia, businesses, and local governments. These steps will facilitate the formation of strong, innovation-driven clusters capable of adapting to modern economic challenges and contributing to Ukraine’s post-war recovery and sustainable development.
