CLUSTER AS THE DIRECTION OF INNOVATION POLICY OF DEVELOPMENT OF THE TERRITORIES

The process of globalization increases the domination of transnational corporations, which leads to tighter competition in the world markets. Michael Porter's theory reflects this process, defining a cluster as a modern form of international competition. A cluster can be examined, on the one hand, as a type of the geographical organization of modern business and, on the other hand, a phenomenon the development of which increases the country's competitiveness in the global market. Variety of clusters is generated by the terms of modern business's functioning. Conditions of a cluster's formation are related to each other through the four determinants of competitive advantage - the so-called national diamond - a system, the components of which are mutually reinforcing. The development of cluster policy is particularly important for Russia at the regional level because of the continuing existence of depressed areas. Cluster in this context can be regarded as a way of enhancing the business's and the government's social responsibility.