Abstract:
In the context of globalization, regions and local economies have come to be viewed against the backdrop of qualitative elements such as increasing productivity, achieving greater economic dynamism and generating employment. In the new situation, the motivation to develop and implement a regional industrial policy with a suitable market mechanism also came to the fore. This was due to the fact that traditional regional industrial policies often led to artificial economic growth and could not be sustainable in the long run with massive subsidies. Analyzes carried out in the context of the industrial policy of developed countries show that balancing interregional internal inequality with budget transfers in many cases does not coincide with the general goals of economic development and gives rise to various contradictions. The concept of a new regional industrial policy, in contrast to the budgetary model of regional regulation, is aimed at maximizing the domestic economic development potential of the territory through the formation of a system of effective market institutions that mobilize competitive advantages, improve the business environment and professional training, and create new technology incubators. This industrial policy with a more strategic goal requires the use of such methods and tools as networking, partnership, competitiveness, flexible innovation systems, and ensuring the consensus of the state and business. Formation of competitive advantages of the Azerbaijan economy at the present stage of development of paramount importance. As the world theory and practice in the first place, this can be done by implementing a cluster strategy. That is the strategy of development of enterprise clusters are able to provide Azerbaijan’s strategic potential growth, and further to make the transition from quantity to quality, greatly enhance the competitiveness of the national economy.
