Theoretical principles of the study of agglomeration factors of the investment attractiveness of communities

Abstract

Understanding the specifics of agglomeration factors is not just an academic exercise, but a crucial step towards forming an attractive investment climate in communities. In the face of globalization and intensified interregional competition, this understanding is paramount. Theoretical comprehension of these processes is not a mere intellectual pursuit, but a necessary tool to identify and analyze the mechanisms through which agglomeration influences investment activity and the economic efficiency of communities. This, in turn, will provide practical recommendations for optimizing management decisions at the local and regional levels of government. The importance of this research is further underscored by the need for local communities to adapt to changing external conditions, identify potential growth points, and form development strategies based on internal innovative resources and agglomeration advantages. The aim of this article is to analyze the theoretical foundations of studying the agglomeration factors of the investment attractiveness of territorial communities, with a clear focus on its practical implications. The article analyzes the theoretical aspects of the interaction between agglomeration phenomena and investment activity, considering the impact of scale, level of concentration, and specialization of production processes on regional economic development. Theoretical approaches to analyzing agglomeration factors are proposed, investigating their impact on economic development and the ability to mobilize investment resources within a specific territorial unit. The development of infrastructure capabilities, initiation of innovative clusters, and support for entrepreneurial activities serve as the main directions for enhancing the investment attractiveness of agglomerations. However, it's important to note that the process of creating urban agglomerations is not a simple task. It's a long-term endeavor that provokes debates and represents a significant level of complexity. It is determined that thanks to the agglomeration effect, regional development becomes more logical, focusing on a variety of economic activities in territories optimal for their implementation. Analyzing the level of development of urban agglomerations allows for a more targeted approach to planning their further development strategies, but it's a task that requires a deep understanding of the complex dynamics at play. Keywords: investment attractiveness, socio-economic development, agglomerations, agglomeration factors, territorial communities.