**Abstract**

The main topic of this study is to define the direction of improving the state policy of Russia in achieving the maximum efficiency of clustering in the country. The chapter aims to study the interconnected influence of innovation clusters on the development of the knowledge economy in Russia and the world. Attention is focused on the improvement based on the cyclical nature of clusters using human capital, technology, policies, and management. To achieve this, a historical review of the formation and successful development of clusters in the Russian Federation is carried out to identify and assess the prominent occurrence cases, the central institutional actors, the indicators of their innovative activity, and the schematics of successful cluster management. The theory section covers current classification methods and typology of innovation-territorial economic associations. Russian innovation policy for cluster development received an up-to-date performance overview as well.

**Keywords:** state policy, institutions, innovation, R and D, cluster, cluster policy
