Essence of clusters and their formation

Remiantis užsienio mokslininkų darbais straipsnyje analizuojama tarpusavyje susietų įmonių - klasterių - ekonominė samprata, atskleidžiama jų funkcionavimo ekonominis turinys: klasterių formavimasis ir įvairūs klasterių formavimosi modeliai, klasterių teikiama nauda, klasterių ir konkurencijos santykis bei jų formavimosi perspektyvos Lietuvoje.This article analyses the concept of industrial clusters as a basis for effective public intervention in the economies of regions. Modern business becomes more and more international and even global, the enterprises more and more specialize, therefore importance of webs, clusters and co-operation increases. The concept of industrial clusters has attracted much attention during the past decade. Today's economic map of the world is dominated by clusters: critical masses in one place - of unusual competitive success in particular fields. Clusters are a striking feature of virtually every national, regional, state, and even metropolitan economy, especially in more economically advanced nations. Clusters are geographic concentrations of interconnected companies and institutions in a particular field. They encompass an array of linked industries and other entities important to competition. Clusters include suppliers of specialized inputs such as components, machinery, and services, and providers of specialized infrastructure. They often extend downstream to channels and customers and laterally to manufacturers of complementary products and to companies in industries related by skills, technologies or common inputs. Many clusters include governmental and other institutions -universities, standards-setting agencies, think tanks, vocational training providers, and trade associations - that provide specialized training, education, information, research, and technical support. Clusters affect competition by increasing the productivity of companies based in the area, by driving the direction and pace of innovation and by stimulating the formation of new business. Clusters promote both competition and cooperation. Rivals compete intensely to win and retain customers. Without vigorous competition a cluster will tail. Yet there is also cooperation, much of it vertical, involving companies in related industries and local institutions. [...] Productivity, not exports or natural resources, determines the prosperity of any state or nation. Recognizing this, governments should strive to create an environment that supports rising productivity. Governments must promote cluster formation. The phenomena of clustering and interdependence are vastly underrated and undervalued in economic development policy in most regions. In fact, economic development policy typically views sector specialization as a problem to be overcome rather than an economic advantage; it also encourages and provides incentives for diversification of economies. Lithuanian companies solve their problems separately, and possibilities of co-operation with other local enterprises and industries are often not used. The formation of clusters is at the initial stage. The competition among companies is based on low prices, insufficient closeness of contacts among manufacturers and customers. Analysis made by the authors of paper showed that both vertical and horizontal relations are typical for Lithuanian firms. Some enterprises became a part of international clusters. The main issue of this paper is that under conditions of small economy model it would be more purposeful for Lithuanian companies to join the international clusters than to develop local cluster