Model of a regional cluster as an example of the concept for the development of the region

Increasing the competitiveness of a region has a significant impact on improving the quality of inhabitants` life. A perfect example of a concept that relates to this idea is a regional cluster. It is the concept specific for regions considered as smart environments, based on business affiliation with academic institutions and creation of a network of mutual relations to facilitate information flow. Cooperation between participants involved in regional clusters, their mutual contact, carrying out joint studies, research and projects are key elements determining the connections between them. Their relationships are an excellent example of a properly functioning competition. Cluster initiatives intensify the implementation of innovation in the economy, thus leading to a long-term economic success of the companies participating in the cluster and stimulate participating regions` economic growth. The economic phenomenon of a free market competition and complex processes of resource flows, that occur at the regional scale, force local authorities to analyze their management strategies and risk of informed decision-making. Such strategy should be based on creating clusters and integrating them with existing processes and regional innovation strategies. The prospect of potential benefits from implementing cluster initiatives encourages companies and local authorities to implement cluster friendly policies.