The Role of Sustainable Industry Clusters in Regional Competitiveness in Times of Crisis

Regional Economics JEL G01, P25 M. V. Koshkarev, A. A. Satmurzaev The Role of Sustainable Industry Clusters in Regional Competitiveness in Times of Crisis KEYWORDS ABSTRACT regional economy, integration, regional competitiveness, economic cluster Introduction. The urgency stems from the need to increase regional stability, strengthen competitiveness, and improve the efficient utilization of resources amid the economic crisis. The article analyzes the impact of sustainable industry clusters on regional competitiveness during the economic crisis. Materials and methods. The study relied on scientific articles from highly ranked international journals and conference proceedings on the impact of clusters on regional sustainability. It also incorporated practical cases of successful cluster initiatives in times of crisis and an analysis of globalization tools that contribute to enhancing regional competitiveness. Results. The article examines the problem of globalization of economic processes resulting from the activities of large economic entities—regions—in the process of integration into the world economy and international economic relations. The main directions and models of regional competitiveness formation, as well as the regional clusters that underpin economic globalization, are analyzed. Conclusion. Globalization increases the need for regions to identify and develop their sustainable competitive advantages to mitigate economic instability and crises. Successful development depends on the clear identification of key competitive factors, including the development of industries that foster international competition and integration synergies. FOR CITATION Received: Jun 30, 2025 Accepted: Sep 2, 2025 Published: Dec 1, 2025 Koshkarev, M. V., & Satmurzaev, A. A. (2025). The Role of Sustainable Industry Clusters in Regional Competitiveness in Times of Crisis. Economic Consultant, (4), 39–54. https:// doi.org/10.46224/ecoc.2025.4.3 This is an open access article distributed under a Creative Commons Attribution-ShareAlike International License (CC-BY-SA 4.0) that allows others to share the work with an acknowledgement of the work’s authorship and initial publication in this journal eiSSN 2686-9012 statecounsellor.wordpress.com ECONOMIC CONSULTANT. 2025. 4 40 INTRODUCTION Significant changes in the structure of the regional economy, price dynamics, production volumes, the ratio of labor productivity to income, and patterns of accumulation and consumption accompany fluctuations in economic phases (increases, decreases). At the same time, the national characteristics of instability depend on the structure and state of economic systems at both national and regional levels, as well as on the degree of their integration into the world economy, their industrial potential, and financial capacity at the time of crisis emergence, among other factors. Regions whose economies are based on only one or two sectors, and whose enterprises within them produce raw materials or intermediate products, are much more vulnerable. Undoubtedly, the current instability and turbulence are exacerbated by the unpredictable and spontaneous development of globalization, which highlights issues associated with the adaptability and flexibility of regional economic systems. In such circumstances, due to significant differences in monetary and financial capacities, interactions between regions, both within a particular state and at the transnational level, are becoming increasingly asymmetric. The problems of stabilizing economic systems, regardless of their scale (state or region), cannot be solved using classical theoretical models. As noted by Thomas Hoerber and Alain Anquetil, economic theory, currently in crisis, is not yet able to generate effective solutions to problems stemming from instability and demonstrates some detachment from the empirical laws governing integration and globalization [1]. Effective development of the regional economic system, amid intensifying globalization and integration pressures, implies the need for consistent application of various financial regulation methods and tools, conducting in-depth studies of development conditions, and identifying prerequisites for increasing regional competitiveness during periods of instability and crisis. According to the author, given the current situation, the concept of glocality is the most appropriate, as it leverages the opportunities and advantages of globalization to increase regions’ competitiveness during a crisis. This concept is based on the paradigm of the interrelation of local and global economic interests. In accordance with this concept, the ability of any region to transform its traditional economic resources into global advantages and to create unique, locally rooted competitive values determines its capacity to respond adequately to modern economic challenges of instability [2]. eiSSN 2686-9012 statecounsellor.wordpress.com ECONOMIC CONSULTANT. 2025. 4 41 This assumption is supported by leading international institutions and organizations that assess country competitiveness, which include certain national regions of certain states in their ratings. For example, OECD representatives note that support for positive regional dynamics has become a key issue in the economic policy of OECD member countries over the past decade. This is explained by the fact that only 10% of the regions accounted for more than half of all jobs during 1996-2018. This state of affairs allows us to assert that a country’s general well-being is determined by a limited number of national regions [3]. In practice, this concept involves developing a model of regional economic policy based not solely on traditional levers managing existing resources but on the full utilization of opportunities provided by the geo-economic environment and the region’s geographical location. In other words, a key development mechanism is the management of market opportunities, which involves the inclusion of the region and its economic actors in external production and value chains, thereby expanding the scope of regional management beyond administrative and territorial boundaries. This, in turn, enables the creation of a fundamentally new type of regional economic policy which is focused on securing leading competitive positions and avoiding traditional forms of competition. This policy involves developing the region’s unique features, organizing the production of new products, creating new markets, and concentrating logistics flows through its integration into the global system of relations. The classic model for the formation of the region’s competitiveness, including in times of crisis, which fails to leverage the opportunities and advantages of globalization, is as follows (see Fig. 1). As shown in Fig. 1, the regional competitiveness model comprises two groups of factors: the “inherited” and the “created”. The first group is formed at the state level and implemented through state policy; the second is formed at the regional level. Obviously, in the traditional model, the basis of regional competitiveness is state economic and social policy. With measures such as taxes, depreciation rates, preferences, and wage regulation, the fundamental conditions for effective management are established [4]. State policy, except for specific preferences for depressed territories, creates equal conditions for all regions and can be considered a constant (for a particular period). Despite the importance of state policy, significant actions must also be taken at the regional level. The merit of the regional community and authorities lies in eiSSN 2686-9012 statecounsellor.wordpress.com ECONOMIC CONSULTANT. 2025. 4 42 the effective utilization of the resources and factors at their disposal, including, for example, the transitive or border placement of the territory and agglomeration effects. The level of the territory’s competitiveness depends on the activities of regional authorities and entrepreneurial and public elites. This partly explains the uneven development of regions. Figure 1 Regional Competitiveness Model If the region takes advantage of globalization opportunities, its competitiveness model is as follows (see Fig. 2). The model presented in Fig. 2 differs from the traditional one (see Fig. 1) by including an additional set of factors affecting regional competitiveness. As noted earlier, these factors, related to the global business environment, create both additional opportunities and threats. Opportunities to strengthen competitiveness include: enhancing investment support for competitive positions through foreign capital, especially foreign direct investment; strengthening technological components (“technological competitiveness”); adopting organizational innovations; implementing international industrial cooperation; and similar measures [5]. time interval level of competitiveness due to public policy created by actions at the regional level eiSSN 2686-9012 statecounsellor.wordpress.com ECONOMIC CONSULTANT. 2025. 4 43 Figure 2 Model of Regional Competitiveness Building Using Globalization Opportunities Globalized regions actively leverage these opportunities, initiating an acceleration mechanism to increase competitiveness. Access to world markets enables them to attract external resources, including financial and non-financial, to strengthen competitive positions, allowing their use in increasingly larger volumes, thereby boosting competitiveness. At the same time, new threats to regional competitiveness arise, referred to in Figure 2 as “global degradations”. These represent foreign economic threats. Therefore, counteracting global destruction is an essential component of leveraging globalization advantages when selecting and implementing measures to overcome a crisis. The corresponding measures should be included in the policy framework for strengthening regional competitiveness. The article aims to analyze the impact of sustainable industry clusters on regional competitiveness amid the economic crisis. time interval level of competitiveness due to public policy created by actions at the regional level dependent on global environment global degradation eiSSN 2686-9012 statecounsellor.wordpress.com ECONOMIC CONSULTANT. 2025. 4 44 MATERIALS AND METHODS When studying the topic, scientific articles on the impact of clusters on the economic sustainability of regions, published in highly rated international journals (Journal of the Knowledge Economy, Leadership, Education, Personality: An Interdisciplinary Journal, Review of Regional Research, The Annals of Regional Science, Smart Innovation, Systems and Technologies, Finance, Economics, and Industry for Sustainable Development, Journal of the Knowledge Economy, etc.), as well as abstracts of international conferences (INTERAGROMASH 2022, Lecture Notes in Networks and Systems, ICBE 2023 Springer Proceedings in Business and Economics, etc.) were analyzed. Practical studies of successful cluster initiatives in a crisis were also utilized, in particular, specific globalization tools that enhance regional competitiveness during crises. SOURCE OVERVIEW The cluster approach contributes to regional competitiveness by fostering enterprise cooperation, innovation, cost reduction, and efficiency, as well as by stimulating regional specialization and attracting investment. D. Celetti et al. argue that without careful consideration, the cluster approach risks being superficial, failing to address core problems, and being quickly supplanted by other “fashionable” concepts, without significantly impacting the innovative development of industrial regions. Scientists have identified historical, structural, and evolutionary features of cluster development, which enable the creation of practical tools for implementing cluster policy in a region [6]. B. A. Bittencourt et al. note that the question of how geographical clusters affect companies’ innovative activities remains unresolved in the literature. Scientists have identified elements of clusters that affect companies’ innovative activities: context, collective strategy, public policy, commercialization, proactivity, external relations, cooperation, assimilation, transformation, and application of knowledge, management, infrastructure, as well as financial and human resources [7]. P. Ganske and C. C. Carbon write that the creation of clusters promotes the idea that a network of companies combining cooperative and competitive practices generates competitive advantages for a given territory. The authors found that prevailing cluster policies often do not lead to consistently eiSSN 2686-9012 statecounsellor.wordpress.com ECONOMIC CONSULTANT. 2025. 4 45 successful clusters; sustainable cluster development requires a shared vision among participants, fostering a sense of belonging, social identity, and the internalization of values and attitudes [8]. N. Grashof shows that the ability of family businesses to innovate depends on the regional context. Within regional clusters, family businesses can leverage localization externalities, resulting in more radical innovations than firms outside clusters [9]. The regional specificity of the cluster approach lies in considering local features and resources, the flexibility to adapt to regional conditions and infrastructure, and the need to form clusters aligned with specific industries and the region’s competitive advantages. M. G. Allabyan notes that the cluster mechanism for implementing industrial policy has demonstrated high efficiency over the past two decades, particularly at the regional level. The authors analyze the prerequisites for the formation of a territorial timber industry cluster in the Khanty-Mansiysk Autonomous Okrug – Ugra. They further consider the developed tools of regional industrial policy for the creation and development of a sectoral timber cluster and conclude that positive economic effects are anticipated [10]. O. V. Cherkashina et al. examine the role of clusters in ensuring regional sustainable development and identify distinctive features as forms of cooperation within regional production frameworks. The authors describe cluster enterprises in the Kaliningrad region and propose new development directions [11]. I. Kedrova et al. consider the prerequisites and features of forming an excursion cluster for industrial tourism, as this type of territorial development is increasingly in demand in Rostov Region of the Russian Federation. Scientists note increased tourist attention compared to previous seasons, with city-forming enterprises and unique industrial facilities such as Rostselmash and Lemax, Bio-Khutor Petrovsky, and the specially protected Don Valley winery playing a pivotal role [12]. S. G. Azizova considers the role of clusters in the consumer market and their impact on regional economic development, examining the Sughd region of Tajikistan. Scientists determined that introducing the concept of clustering supports the formation of sustainable economic structures and increases the competitiveness of local enterprises. In the consumer market, clusters facilitate the development of innovative products and services, improve quality, and reduce costs through resource sharing and lessons learned [13]. eiSSN 2686-9012 statecounsellor.wordpress.com ECONOMIC CONSULTANT. 2025. 4 46 C. Coman & V. Cojanu found that more than half of Romanian counties have substantial potential for developing clusters in primary industries—agriculture, forestry, fishing, mining, and quarrying. The researchers concluded that Romania requires significant investment in knowledge and innovation, intelligent systems along the value chain, and the promotion of national and international cooperation [14]. J. L. Christensen & D. Störring develop the concept of “cluster entrepreneurs” as key actors in cluster formation, illustrating this with a Danish biomedical technology cluster initiative [15]. C. R. China et al. describe the Innovative Systems and Cluster Development Program implemented in Tanzania, a successful collaboration among cluster companies, universities, local governments, and research institutes. Implementation of collaborative guidelines has fostered innovation, knowledge sharing, internships, and long-term partnerships through Memoranda of Understanding [16]. A. Andhale & S. Rath write that industrial locations in India demonstrate sustained geographic clustering, resulting in significant regional imbalances in formal employment. Scientists focus on the dispersion of enterprises outside dominant clusters into low-industrialization areas [17]. D. Kim et al. quantify the growth and decline of industrial clusters by validating actual models. The authors analyzed data from 1,375 industrial clusters in South Korea over 20 years [18]. F. Suárez et al. present strategies to assess technological innovation among Ecuadorian textile companies post-pandemic. Clustering allows identification of common goals and projects, simplifies financing, develops technological innovation strategies to increase competitiveness and productivity, and achieves the necessary level of internationalization. They also suggest targeted subsector clustering and innovation-capital integration for competitiveness [19]. Numerous methods for forming clusters exist, including analytical, institutional, strategic, and innovative. Models can be centralized, decentralized, or hybrid, focused on developing existing or creating new clusters. C. P. Chain & L. G. de Castro Junior use geostatistical techniques to map potential industrial clusters, measuring the proximity between firms, identifying regions with high industrial concentration, and assessing the concentration index at the firm level [20]. The cluster type models highlighted by D. Napolskikh consider spatial concentration of production, institutional environment, innovative business networks, and digital eiSSN 2686-9012 statecounsellor.wordpress.com ECONOMIC CONSULTANT. 2025. 4 47 infrastructure. Scientists proposed an innovative hypercluster model, representing the development of multi-cluster structures in the digital economy [21]. Y. Tan et al. introduced a method using extensive enterprise data and semantic similarity to identify industrial clusters, enabling rapid identification and quantitative assessment of industry connections and spatial coordination at the enterprise level [22]. G. Christopoulos & R. Wintjes presented an indicator to identify innovative clusters beyond traditional industry taxonomies, integrating knowledge creation and use into regional economic systems. Such clusters facilitate feedback mechanisms between knowledge demand and supply and include both high-tech industries and those with centuries-old geographically concentrated production specializations [23]. G. Jain et al. note that SME clusters often face conflicts and deadlocks impeding operational dynamics. The authors explore blockchain technology for collaborative SME cluster management using community self-governance principles [24]. When forming clusters, environmental sustainability must be considered, minimizing negative impacts, adopting eco-friendly technologies, preserving biodiversity, and ensuring rational natural resource use. V. Y. Akhmetov et al. analyzed agro-industrial cluster development. They argue that the multiplier effect allows agribusiness clustering to contribute to rural development, improve quality of life, organize new enterprises, diversify rural economies, create jobs, and enhance transport, engineering, and social infrastructure [25]. Y. Liu et al. examine industrial clusters’ impact on corporate carbon emissions in China (2008-2020). They found that stronger industrial clusters correlate with lower carbon intensity, and heterogeneity across clusters significantly affects carbon reduction performance [26]. Rui Wang writes that clusters and hubs have become key topics in carbon capture, utilization, and storage (CCUS). By sharing costs, risks, benefits, and results, clusters and hubs facilitate large-scale CCUS application [27]. Thus, studies show that without deep understanding, the cluster approach may be superficial and ineffective for regional innovation. Historical, structural, and evolutionary features must be considered to form practical development tools. Currently, methods to map and analyze industrial clusters include geostatistics, spatial concentration models, innovative networks, and digital technologies. 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European entrepreneurial regions: regional ecosystem mapping: region of Île-de-France. Publications Office of the European Union. https://op.europa.eu/it/publication-detail/-/ publication/f74e9779-b10f-11ea-bb7a-01aa75ed71a1/language-en/ 32. Varum, C. (2020). Industrial dynamics in the context of a region’s international competitiveness. Local Economy, 3(35), 209–229. 33. Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2019). International economics: theories of trade. INFORMATION ABOUT THE AUTHORS Maxim V. Koshkarev Assistant of the Department of State and Municipal Administration and Constitutional Law. Autonomous non-profit organization of higher education “Institute of Business Career”. Moscow, Russia. E-mail: karakas@ inbox.ru. ORCID ID: 0000-0002-8908-8517 Conceptualization, Methodology, Writing - Original Draft, Visualization Asan A. Satmurzaev Professor, Dr. Sci. (Econ.), Professor of the Graduate School of Finance and Accounting. Turan University. Almaty, Republic of Kazakhstan. E-mail: ncasan@ mail.ru. ORCID ID: 0000-0002-5208-6761 Investigation, Writing - Review & Editing The authors have declared that no competing interests exist Copyright: © Maxim V. Koshkarev, Asan A. Satmurzaev, 2025 Editor: Daniela Antonescu. Romanian Academy (Romania)