Abstract
In the current economic conditions the regional development strategies are based on the achievements of science and innovation technologies. In this case the cluster approach is seen as an innovative technology of the regional economy management. The cluster is often used in modern economic systems as a term of the complex of industrial organizations, equipment suppliers, components and production services, scientific and educational organizations of territorial proximity and cooperation relations in goods or services production. The development of clusters in a market economy is needed to new production systems as the context of globalization and regionalization of economic activity. Using the Smolensk region as an example of great opportunities, we are considering the clustering generally, influence on the development of traditional industries in the region. The Smolensk region has a strategy of the flax cluster for 2018-2020. The positive dynamics of the flax development as cultivated areas can increase gross collection of the flax fibre in farms of all categories during the implementation of this strategy. It should be noted the region has problems in the flax industry; that why solving these issues it is possible to achieve sustainable competitive advantages applying measures for the flax cluster development of the Smolensk region.
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