THE CLUSTERS FUNCTION IN ACHIEVEMENT OF COMPETITIVENESS

Abstract

Contemporary competitiveness depends on productivity but not on its approach to production factors or company size. Productivity lies on a competition of companies, that is, organizations can improve productivity in any branch if use sophisticated methods, advanced technologies and offer unique products and services. Sophistication by which the company competes in certain area is greatly affected by quality of local business environment. Clusters operate on competitiveness of organizations in three ways: first, by increase of productivity of the companies in environment, second, supporting and managing the innovations contributing the productivity increase, and third, enhancing the initiation of the new business enlarging and strengthening the cluster.