Increasing territorial capitalization by incorporation of small enterprises into clusters

Abstract

Modernization of the Russian national economy depends on small businesses and their involvement in capitalization of the territorial potential. This article discusses methods, models, and mechanisms of territorial capitalization based on incorporation of small business enterprises into clusters along with medium- and large businesses. We propose an optimization model for assessing the efficiency of such clusters: our research has shown that this model can be applied for decision-making in regional strategic planning. Methodologically, this study relies on the theories of industrial development and economic growth, the industrial cluster theory, and the works of Russian and international researchers on mechanisms of management of territorial potential, their establishment and implementation. Capitalization of the region's resource potential manifests itself in the form of static and dynamic effects. We developed models of interaction between small and other businesses and structures within a cluster oriented towards territorial capitalization. We demonstrated that incorporation of a university into a cluster structure increases the innovative capacity of all cluster members. This research may be further expanded to study the mechanisms of involving small businesses operating in peripheral areas into clusters.