Formation Of Industrial Clusters Research Articles

Successful Foreign Direct Investment Through the Development of Parts Supply Industries in the Host Country: A Study of India's Automobile Manufacturing Sector

Several large multinationals and a few local assemblers dominate the Indian automobile industry. The largest multinational, Maruti Suzuki, entered the Indian automobile industry with a policy of developing local automotive parts manufacturers to achieve high local content ratio. This study seeks to determine the extent to which foreign direct investment (FDI) in host countries contributes to the growth of automobile parts manufacturers. We use district‐level panel data from 2000 to 2008 to assess the linkage between the production of major automobile assemblers and the development of automotive parts suppliers located in the same and adjacent districts to those assemblers. Our regression results show the heterogeneity of the linkages, suggesting that the formation of industrial clusters by local parts suppliers and the expansion of their production capacity are likely to be key determinants of the success of FDI in the Indian automobile industry, rather than relying on in‐house parts production or imports.

The High-Quality Development of the Esports Industry in the Yangtze River Delta Region

eSports, as an active branch of the digital economy, has generated widespread influence globally and is exhibiting rapid development momentum in the Yangtze River Delta region. Based on an in-depth study of the eSports industry in this region, this paper analyzes the macro trends and micro mechanisms of the industry's development. Through empirical data and case studies, a systematic exploration of the development of the eSports industry in the Yangtze River Delta region is conducted. The research first clarifies the support policies for the eSports industry development by the governments of the three provinces and one city in the Yangtze River Delta and examines their effects. It reveals the positive role these policies play in promoting the formation and expansion of the regional game industry clusters. Secondly, it provides a detailed analysis of the evolution of internal enterprise cooperation and innovation models within the industry and uses models to predict main future trends of industry ecological changes. The paper also offers a rigorous assessment of the challenges, potential risks, and the impacts on the economic and cultural aspects faced by the industry's sustainable development, proposing strategies and recommendations to achieve ongoing advantages in global competition. Specifically, the research delves into how the eSports industry can leverage new information technologies, such as 5G networks, artificial intelligence, and big data analytics, as well as explores the potential for cross-integration with other industries, including education, tourism, and retail. The research also analyzes the region's global strategic layout of the eSports industry from an international perspective, focusing on the positive impact of international competitions on local economic development and brand image enhancement. In addition, through detailed studies of the eSports user group, it analyses how users' needs, consumer behavior, and market dynamics can promote the industry's healthy development. The paper also critically reflects on the social responsibility and ethical issues of quality development in the eSports industry, examining its potential effects on promoting social harmony and cultural dissemination, as well as its impact on the healthy growth of adolescents. By employing comprehensive research methods, this paper not only explores beneficial growth paths and models for the eSports industry in the Yangtze River Delta region but also provides strategic decision-making support for local businesses and government departments. It contributes to the mutual development and cooperation within and beyond the region's eSports industry chain. Towards the end of the study, the paper forecasts new opportunities and challenges for the Yangtze River Delta region in the global eSports industry due to the introduction of new technologies and changes in the international competitive landscape. It emphasizes the need to develop long-term plans and enhance the regional industrial support system. In conclusion, this research defines the position and role of the Yangtze River Delta region in the global eSports industry, analyzes key points for high-quality development strategies, and offers profound theoretical insights and practical guidance for promoting innovation, collaboration, and sustainable growth within the regional eSports industry.

НАПРАВЛЕНИЯ СОВЕРШЕНСТВОВАНИЯ ИННОВАЦИОННОГО РАЗВИТИЯ ОТЕЧЕСТВЕННОЙ ЭКОНОМИЧЕСКОЙ СИСТЕМЫ

The purpose of the article is to systematize the problems and develop recommendations for improving the innovative development of the economic system of the Russian Federation. The main objectives of the article are: clarification of the content of the concept of “innovative development of the economic system”; systematization of the problems of innovative development of the economic system of the Russian Federation; formation of recommendations for improving the innovative development of the economic system of the Russian Federation. Methodology. The methodological basis of the article is the dialectical method of studying trends and problems of innovative development and a systematic approach. In the process of writing the article, such research methods as analysis, synthesis, induction, deduction, analysis of normative legal acts and statistical information were used, correlation and regression. Results. We have systematized the main institutional, organizational, financial, analytical and methodological problems of ensuring the effectiveness of innovative development of the modern economy of the Russian Federation. Based on the functional analysis, insufficient efficiency of investments in innovations in the economy of the Russian Federation 2012-2023 was revealed. Recommendations have been developed on the formation of a comprehensive federal program to enhance the innovative development of the Russian Federation (for example, for the period up to 2030), which would include measures to tax incentives for innovatively active companies, administrative impact in terms of enhancing the involvement of domestic banks and insurance organizations in innovative processes, measures to intensify the processes of formation, development and improvement of national, regional and local innovative industrial and other industry clusters, to develop mutually beneficial international transfer of advanced technologies with friendly countries.

Analisis Struktur Kinerja Kluster Industri Unggulan Di Kabupaten Sidoarjo

This study discusses the analysis of the power structure of leading industry clusters in Sidoarjo Regency. Sidoarjo Regency is one of the districts in East Java Province that has the potential and success in developing the local economy through the formation of industrial clusters. This study uses descriptive qualitative research methods by collecting secondary data through literature analysis. The results of the analysis show that factors such as superior natural resources, infrastructure availability, labor skills, research and innovation facilities, and government support policies affect the successful formation of leading industrial clusters in Sidoarjo Regency. Industrial clusters increase productivity, efficiency, innovation and commercialization. This study provides an understanding of the characteristics and dynamics of leading industry clusters in Sidoarjo Regency and the factors that influence efficiency. The results of this study can be the basis for further development to optimize the economic potential of the region with the help of industrial clusters.

Human Capital Development, Special Economic Zones, and Dubai as Case Study: a Literature Review

Purpose: This article maps the scholarly conversation on two important topics in the field of economic development: human capital and special economic zones. While these have been studied separately, little work is available on their intersection. Design/methodology/approach: The article is a systematic literature review. It followed the preferred reporting items for systematic review and meta-analysis (PRISMA) criteria. Findings: While human capital development has been largely discussed from the perspective of developed countries, it hasn’t been examined specifically in connection to SEZs. Moreover, there is solid evidence of the positive impact of industrial clusters, suggesting that SEZs that pursue the formation of industrial clusters might have the strongest effect on human capital development. The piece argues the intersection of human development and SEZ establishment is currently a gap in the literature calling for further empirical investigation Originality: The literature review is brought to bear on the experience of the Emirate of Dubai, in order to highlight features of its development history that make it an ideal case study for empirical investigation.

Structural transformation of the industry of Ukraine under the influence of Russian military aggression

Russia's full-scale military aggression has caused enormous damage to the industrial capacity of Ukraine, as the hostilities have mainly affected those regions where the manufacturing sector is most developed. The purpose of the article is to identify structural transformations in the industrial sector of Ukraine's economy caused by Russian armed aggression. Since 2014, the output structure of the Ukrainian processing industry has undergone drastic negative changes: the share of low-tech industries has increased, while the share of medium- and high-tech industries has decreased. The efficiency of the Ukrainian processing industry is significantly lower than in the EU countries: the share of gross value added in output in Ukraine in 2020 was 20%, while in Poland it was 27% and in Germany 35%. One of the key problems of the functioning of the industrial sector and the national economy, in general, is the high import dependence of medium- and high-tech industries (especially the machine-building industry), the share of imports in costs or intermediate consumption of which in 2020 averaged over 48%. The war affected the dynamics of industrial production in Ukraine - during 2022, the volume of sold industrial products decreased by 21.6%, in particular, the products of processing industries - by 31.5%. The largest drop (by 58%) was recorded in metallurgical production. At the same time, the volume of industrial products sold abroad decreased by 44.6%. The export orientation of the industrial sector of the economy, i.e. the share of products sold outside of Ukraine, decreased by 8.4 percentage points (or by 29.6%) over the period. The post-war recovery of industrial capacity should be based on innovation and long-term development prospects. Accordingly, the central place in the structure of the industrial sector of the national economy should be occupied by mechanical engineering and chemical and pharmaceutical industries. This involves the creation of enterprises of the highest level in terms of technologies, organization of production, quality of management, etc. It is also necessary to move to new forms of organization and location of enterprises, in particular, the formation of industrial clusters that will ensure competitive costs of products.

Prospects for the Development of Underdeveloped Territories on the Basis of Energy and Transport Infrastructure

The paper proposes the development of the Lower Angara region in the Krasnoyarsk Territory on the basis of the formation of industrial clusters, as well as the development of energy and transport infrastructure. The groups of state support measures that can be used to form industrial clusters and develop the infrastructure of the Lower Angara region are considered. State support measures are structured according to certain groups. It is concluded that the use of state support measures in the formation of industrial clusters, as well as the development of energy and transport infrastructure will make it possible to more effectively develop the economy of the Lower Angara region.

Construction enterprises’ adoption of green development behaviors: an agent-based modeling approach

Many previous studies have used performance evaluation to explore the impact of environmental regulation on the green development of enterprises. However, there are few studies on the process by which enterprises adopt green development behavior. Here, we aim to simulate the whole process by which Chinese construction enterprises adopt green development. We also consider impact of environmental regulation and industry clusters in this process. Using agent-based modeling, we construct a computational experimental simulation model for the adoption of green development behavior by construction enterprises. The model considers the organizational behavior characteristics of construction enterprises and the evolutionary characteristics of the renewable construction materials market. Our results show that in terms of renewable building materials, construction enterprises that actively adopt green development behavior are more sustainable than those that do not. Moreover, with the implementation of sustainable environmental regulations, more enterprises are passively adopting green development behaviors. However, unsustainable environmental regulations do not have a positive effect. The formation of industrial clusters is also conducive to promoting companies’ adoption of green development behaviors. Therefore, construction enterprises should take the initiative to adopt green development behavior and migrate to industrial agglomerations. This practice is not only beneficial to the sustainable operation of the enterprise and the expansion of the enterprise scale, it will also have an optimization effect on the external environment. Here, we take construction enterprises as the breakthrough point and expand research on enterprise green development. We also provide a theoretical basis and insights for enterprises with environmental responsibility to engage in green development behavior.

Features and prospects for the formation of sectoral industrial clusters in the Republic of Belarus, taking into account foreign experience

Cluster policy is a priority direction of sustainable development, contributing to the increase of national economy competitiveness and investment and innovation potential. The article considers clustering of the regional economy as a tool for ensuring the population life quality in the regions in the context of the world global changes.The novelty of the study consists in identifying the features of cooperation in certain regions, taking Into account the level of their socio-economic development. The essential differences of various cluster models formed in the process of innovation activity are substantiated. Measures for the clusters formation in the Republic of Belarus are proposed. The results of the study are important in the implementation of the sustainable socio-economic development country strategy based on the creation of industrial regional clusters.

Research on Innovation Ecosystem of Dairy Industry Cluster Based on Machine Learning and Improved Neural Network.

With the rapid development of global economy, the industrial cluster has become the new trend of world economic development. So far, the industrial cluster mode with space as the main division has been formed. The cooperation of industrial clusters is dynamic. The industries in the cluster cooperate with each other for mutual benefit and win-win, occupying a place in the fierce market competition. In addition, the industrial cluster is also conducive to strengthen the international economic division of labor and points out the direction of regional industrial transfer. China is now in a critical period of economic development; the industrial cluster plays an important role in China's industrial transformation and economic development. At present, the most common regional development mode in China is industrial cluster. The emergence of industrial cluster accelerates the development of industrial regional economy and the balance of industrial layout. Industrial clusters occupy a key position in China's economic industry chain, and the development and change in industrial clusters will directly affect the development of the entire industrial chain. This study first simulates the evolution path of industrial cluster and then establishes the relevant data model. Finally, through repast simulation, it puts forward conclusions and suggestions according to the verification results. The construction of dynamic model can realize the simulation of industrial cluster theory. According to the simulation results, we can find that the ecosystem in different stages will produce different characteristics; the formation and evolution of industrial clusters are actually the epitome of market development. In this process, the government guidance and market regulation are needed to accelerate the formation of industrial cluster ecosystem and increase the scale of industrial cluster.

Prediction of Evolution and Development Trend in Sports Industry Cluster Based on Particle Swarm Optimization

Sports industry cluster refers to the economic phenomenon that sports related enterprises gather in a large number in a specific area. For the sports enterprises in the cluster, they can obtain huge competitive advantages through enterprise agglomeration, thus obtaining better development and rich economic benefits. The optimization of particle swarm optimization is interlinked with the agglomeration of industrial clusters. Therefore, in view of the limitation of the standard particle swarm optimization (PSO) algorithm, an improved particle swarm optimization algorithm-diaphragm particle swarm optimization (D-PSO) was proposed and used to simulate the formation of sports industry clusters. D-PSO introduces the cell membrane processing mechanism of the biological system into the PSO algorithm, which improves the ability of the PSO algorithm to get rid of local extremum points. The competitiveness value of the sports industry cluster is the value of the objective function solved by the D-PSO algorithm. The geographical coordinates of the industrial cluster were the locations in the particle search space of the D-PSO algorithm. The D-PSO algorithm is used to simulate the aggregation process of enterprises in the cluster. Compared with the standard PSO, the D-PSO algorithm has better convergence performance and optimal rate. The results of case analysis show that the proposed method can effectively predict the development trend of sports industrial clusters.

Arahan Pengembangan Sentra Industri Garam di Kecamatan Arungkeke, Kabupaten Jeneponto

Arungkeke subdistrict is one of the main producers of national salt production in fulfilling national salt needs, especially in South Sulawesi. To fullfill industrial and consumption needs efforts are needed to maximize the potential in salt-producing centers. The aim of this study is to determine the extent of the potential for extensification of salt fields, the potential for the formation of salt industrial clusters and the direction for the development of salt pond centers. This research was conducted in Arungkeke District, Jeneponto Regency from June 2019 until February 2020 (9 months). This study uses a literature approach and field research. The analytical method used is descriptive quantitative and qualitative analysis, as well as spatial analysis. The results of the analysis showed that the area of the potential for extensification of the salt ponds reaches 19.55 km2. The average distance between a point (industry) and its closest point is 0.036 km. As many as 77.77% or 224 points (industry) have a distance from the closest industry that is less than this average distance. This condition is in accordance with the theory of the cluster life cycle according to Menzel and Fornahl, which has the potential to become an industrial cluster. The directions for the development of salt industrial centers in the future are: 1) the need for extensification of salt ponds on suitable land; 2) providing distributors of production equipment; and 3) cooperating with universities or the private sector, either in the form of technical assistance for production or product innovation, business management and marketing.

Assessing advantage cluster: the case of Pithampur auto industry

Learning outcomes The learning outcomes of this paper will help students in understanding the dynamics of the formation of industry clusters and the benefits associated with industry clusters. The case will give stimulus towards the cluster competition. Case overview/synopsis The case describes the dilemma of a potential investor of a tyre company that wants to diversify its product line and is searching for a new strategic location. The investor is thoughtful about the Pithampur auto industry cluster for its upcoming investment. The case demonstrates how Pithampur has transformed into an “industry cluster” and the benefits it provides to firms in it. However, Pithampur is not the only auto industry cluster in India, clusters like Chakan-Pune is in competition with Pithampur for attracting investments. This is a cause of worry for the cluster’s stakeholders. The case projects amalgamation of concerns of the stakeholders of the clusters and those of potential investors in evaluating and benchmarking it with other clusters for a competitive future. Complexity academic level Suitable for both undergraduate and post-graduate students (MBA students). Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS: 11: Strategy.

OPTIMALISASI PARTISIPASI MASYARAKAT DALAM MENCAPAI KEUNGGULAN PROGRAM MKSB (Magelang Kota Sejuta Bunga)

The purpose of the preparation of this policy text is to identify the factors that cause the 2015-2018 period of 2015-2018 less than optimal performance of the Magelang City of a Million Flowers (MKSB) program. MKSB is a slogan that supports the branding of Magelang City. This program has been implemented for two periods, namely the period 2012-2015 and the period 2015-2018. Evaluation results from various sources indicate that the quality of human resources for implementing the MKSB program and community participation in supporting the program is still low. After conducting a study, it was shown that the 2 obstacles were caused, among others, by the low participation of the community to support the program, so that the community might not feel they belonged to this program which had an effect on low awareness. Therefore, solutions are offered through more targeted community empowerment, the formation of industrial clusters, and the formation of flower clusters.

CLUSTER POLICY AS A TOOL FOR THE DEVELOPMENT OF THE ECONOMY OF THE RUSSIAN REGIONS

The article researches theoretical aspects of formation and development of territorial clusters: their structure, approaches to definition, typology, key advantages. The regulatory framework for the implementation of cluster policy in the Russian Federation has been defined, as well as an analysis of the level of development achieved on the example of the Udmurt Republic. The main directions of cluster development at the federal level are considered: formation of innovation-territorial and industrial clusters. In each area, public support programmes and mechanisms have been investigated to ensure flexible funding for cluster policies. Favorable opportunities have been identified for the development of cluster projects, including when using the potentials of special economic zones, science and measures to support federal and regional development institutions. The directions of cluster initiatives in the Udmurt Republic have been formulated, the already existing cluster formations, such as innovative-territorial, industrial and tourist-recreational clusters, have been evaluated. The activity of the Russian Association of Clusters and Technology Parks as a subject uniting the organizations of technological and industrial infrastructure has been analyzed. Patterns and priorities of cluster policy development at the present stage are highlighted. Cluster associations are a unique economic system, including a set of industrial enterprises, scientific and educational organizations, and are considered as an effective tool to increase the investment attractiveness of the country and individual regions.

An Integrated Approach to the Organization of Designing a Shipbuilding Cluster in the Republic of Crimea

Aim. The presented study aims to develop an organizational and economic mechanism for designing a shipbuilding cluster.Tasks. The author examines legal documents regulating the formation and development of industrial clusters in the Russian Federation, identifies opportunities for designing a shipbuilding cluster in the Republic of Crimea, and provides a comprehensive algorithm for the cluster’s creation.Methods. The author develops an algorithm for the formation of an industrial cluster in the context of the shipbuilding industry. The study uses the methods of structural, functional, and normative analysis as well as organizational design.Results. The developed algorithm for creating an industrial cluster defines the logical sequence of stages in its formation, making it possible to develop a comprehensive approach to the organization of designing a shipbuilding cluster in the Republic of Crimea. The formation and development of a shipbuilding cluster require each potential participant to make an independent decision about joining the cluster; implementation of joint projects by economic subjects on mutually beneficial terms while maintaining competitive relations; stimulation of innovation and promotion of goods, works, and services; interaction with educational and research institutions; development of technological and industrial infrastructure. Cluster-based interaction helps to activate the stages of specialization and cooperation, attract customers and suppliers, reduce the unit cost of completed orders and technical services. Implementation of the cluster approach in the shipbuilding industry involves examining a separate industry in relation to related industries.Conclusions. The essence of the organizational and economic mechanism for designing a cluster in the shipbuilding industry in the Republic of Crimea is characterized by the specific localization of business structures. The cluster is aimed at enhancing the competitiveness and efficient interaction between these structures through specialization and industrial cooperation, attracting financial, research, and educational organizations.

TAKING INTO ACCOUNT TERRITORIAL AND INNOVATIVE ASPECTS IN THE FORMATION OF THE INDUSTRIAL CLUSTER

The article analyzes the impact of territorial and innovative aspects on the formation of an industrial cluster. Improving the efficiency of territorial development is one of the biggest problems of the modern economy and management. The system of consideration of territorial and innovative aspects of industrial cluster formation is considered in the article. It is determined that an important component is the institutional changes, the use of appropriate methods and tools of state influence, aimed at the process of clustering in the study areas. Particular importance is attached to the study of the implementation of the phased process of cluster formation. The need for effective functioning of the state mechanism is revealed. Statistical indicators of Ukraine's development are presented, on the basis of which the components for assessing the development potential of the territory are analyzed. In particular, a model of dependence of the territory's potential on a number of indicators is proposed. The influence of the development of the innovation aspect on the formation of the attractiveness of the region is studied. It is proved that the assessment of the region's potential correlates with the costs of innovation in this region. The results of the study showed that the cluster approach allows to consider and describe the industries applied to a particular area and its features. Most often, clusters of enterprises are classified according to such parameters as geographical location, availability of capital, proximity of suppliers, competitiveness, access to specialized services, development of labor potential, availability of specialized educational institutions and research organizations, industry affiliation. The application of integrated assessment in this study made it possible to identify highly promising, medium-promising and low-promising areas, ie to determine the stages of formation of industrial clusters. The article also analyzed statistical indicators such as innovation activity of industrial enterprises, labor force, research and development costs. In particular, the coincidence of the dynamics of changes in these indicators was determined. This is the basis for taking into account territorial and innovative aspects in the formation of industrial clusters.

ВЫЯВЛЕНИЕ ЭКОНОМИЧЕСКОЙ СПЕЦИАЛИЗАЦИИ И ПОТЕНЦИАЛА КООПЕРАЦИИ СУБЪЕКТОВ РФ

The economic specialization of territories is a common definition in economic studies, while the methodology for its definition varies considerably. The paper presents an attempt to comprehend the essence of the concept of economic specialization of the territory in modern conditions. Various approaches to its definition are presented and analyzed, both by great Soviet scientists and modern interpretations. A methodology and formula for determining the economic specialization of subjects of the Russian Federation is proposed, taking into account the existing limitations of publicly available statistical information. Based on the identified economic specialization, the similarity coefficient of the economic specialization of the subjects of the Russian Federation was calculated. The calculation method includes computer data processing in the M language in the Microsoft Power Query environment. All subjects of the Russian Federation were divided into 9 groups in accordance with their economic specializations in order to determine a list of comparable territories. In order to identify the real potential of economic cooperation of adjacent territories, on the basis of the grouping, a cartogram of the economic specialization of the constituent entities of the Russian Federation was formed using the MapChart software tool. In the course of visual analysis, zones of similar economic specialization were identified, and the degree of cooperation potential was determined based on the similarity coefficient. This study is of an applied nature and is intended to expand the tools for developing a targeted state policy for managing the development of territories. The identification of economic specialization is intended to form groups of comparable territories for a one-time solution to emerging problems of the same type. Identification of the cooperation potential of the subjects of the Russian Federation is in demand from the point of view of the formation of interregional industry clusters, which corresponds to the current trends in the formation of state policy in the development of agglomerations and the transformation of the settlement system.

КЛАСТЕРНА СТРАТЕГІЯ ІННОВАЦІЙНОГО РОЗВИТКУ УКРАЇНИ

The really working effective mechanisms for the formation and development of innovative industrial clusters in various regions of the world have been investigated. The essential advantages and disadvantages of these mechanisms are analyzed. The national specificity of Ukraine in this matter has been taken into account. On this basis, an "ideal" cluster strategy for the innovative development of Ukraine at all levels of its economic system has been formulated. It has been proved that for the innovative development of the Ukrainian economy it is necessary to: develop a law on state participation in the process of innovative cluster industrial development of Ukraine; improving the procedure for the formation and implementation of the most important cluster innovation projects of state importance within the framework of national target programs for innovative cluster development; development of measures of state support for innovative cluster entrepreneurship; formation and implementation of cluster pilot projects for innovation in the regions. The strategy of innovative cluster industrial development of Ukraine should provide for the development and growth of human capital as one of its main priorities. The content of the strategy of innovative cluster industrial development of Ukraine is to conduct research and development aimed at creating scientific and technical innovations, their practical application in the production and sale of a product, as well as in the field of services carried out within innovative industrial clusters or their direct participation. This strategy is a part of the state development strategy, which includes the main goals, principles, directions and ways of the state's influence on the participants of innovation activity - through state support for the widespread creation and functioning of innovative industrial clusters. Solving the problem of structural restructuring and transition of the national economy of Ukraine to the sixth technological mode is possible only if the strategy of innovative cluster industrial development is implemented, based on using the potential of innovative industrial clusters to continuously update the technical base of production, improve its technological structure, generate and introduction of innovations that provide cost savings or create conditions for such savings. The main purpose of innovative cluster industrial development of Ukraine is to create (with the help of clusters) economic, legal, financial, organizational and other conditions that provide accelerated development and development of new competitive products and modern environmentally friendly, safe, energy and resource-saving technologies. basis - the transition of the country's economy to higher technological systems.

Reconstruction of the economy of the southern regions of the Ukrainian SSR and socio-economic revival of Crimea after the Second World War

The research has provided an analysis of the social and economic situation on the Crimean Peninsula after the end of the World War Second, as well as on the territory of Ukrainian SSR neighboring to it. The obtained data as regards the situation with the economy and manpower resources of Crimea after the end of military operations and expulsion of indigenous peoples on its territory, as well as the social and economic situation of Kherson region and east regions of Ukraine provided the basis on which the main conditions of economic recreation of the Crimean region were studied. The materials were analyzed based on archive funds including business correspondence and statistical data of the state authorities in Ukrainian SSR and in the governing party (Ukrainian Communist Party of Bolsheviks) the bodies of which actually took all principal management decisions. The research showed that significant manpower and material resources were activated in southeast regions of Ukraine with the purpose of implementing large-scale projects in the industry and agriculture. The biggest at­tention was paid to development of power generation based on coal mining in Donets Basin and heat power generation in Dnipro Basin. Formation of powerful energy areas created conditions for development of systems for irrigating arid land in south regions of Ukraine, electrification of agriculture and formation of powerful industrial clusters in those regions of Ukraine that were neighboring to the Crimean Peninsula. Realization of large-scale projects of development in the regions, which were neighboring to territory of Crimea during the years of the first five-year plan implementation after the end of the World War Second created conditions for the economic recreation of Crimea through applying the experience and extend­ing the territory scope of projects implementation to the territory of peninsula.