*Policies for Improving the Efficiency of Innovative Clustering in an Emerging Market DOI: http://dx.doi.org/10.5772/intechopen.112150*

innovation policy, provokes discoordination among the cluster members. Also, there needs to be a consolidated source of information describing the organizational functioning of innovation clusters. So, enthusiasts such as the author, who is proactive in obtaining information on local cluster management, face the limited nature of their description [8].

However, there are some positive aspects to the strategic situation of the Russian Federation. For example, there is enormous potential for editing and concretizing the strategic vision, and an extensive array of opportunities for interpreting new orientational recommendations can be introduced. With an emphasis on integrating more companies and other forms of business into clusters, small- and medium-sized businesses can be improved. In addition, the detail of procedures for subsidizing clusters is quite transparent. The current strategy extensively describes the range of sectoral and infrastructure activities for implementing the innovation program, which is a positive [6].

It is noteworthy that when discussing the actual state of Russia's innovative economy, some experts argue that a monopolistic industrial policy is necessary to accelerate economic growth, while the antitrust policy is destructive and creates unnecessary additional restrictions. However, another camp states that the conditions for the fair competition are just and that incentives for investment and the entire operation of free policy are necessary to provide market participants with advantages over competitors and deprive them of monopoly policy [9]. At the same time, the industrial policy of enterprises eliminates the interest in increasing production capacity. Without concrete guidance in this regard, the country is now open to improving the tools of state regulation, the status of legislation, and the stimulation of foreign direct investment, which have been lost due to consistent sanctions from the United States and the European Union [10]. These circumstances have outlined the multiple strengths and weaknesses of the current Russian economy, which are detailed in **Table 2**.

Many small Russian enterprises face the urgent difficulties of further innovation and survival. At the same time, the country has sufficient potential for comprehensive development: a cheap material base and empty production areas. However, the accepted superficial orientation of the economy to export actively minimized the production capacity of the manufacturing sectors and only stimulated the resourceextracting industries. Now, the competitiveness of the processing and transforming knowledge, primarily industrial and commercial products, requires the regular and tight integration of new management that embodies the best scientific results worldwide.

Now, bringing the investments to clusters should correspond with their needs and interests and the state regulations. Depending on the specific combination of companies and interests, cluster financing can be presented in various forms. Investment can be carried out based on each cluster member's self-support but according to a single agreed business plan without the involvement of third-party sources. Financing also comes from collective self-financing through creating equity in private fund institutions created by cluster members on a shared basis. Funds raised through investment loans are taken by each cluster member independently, but there is also a real possibility of financial support based on an agreed-upon business plan. Finally, according to the popular method of financing, the cluster is legally represented by a specific participant or fund, provided that some or all of the cluster participants receive government subsidies [7].

Nevertheless, the principal instruments of financial support for clusters used in Russian practice are inter-budget subsidies, targeted federal and state programs, and the activities of state companies and development agencies [7].

*Policies for Improving the Efficiency of Innovative Clustering in an Emerging Market DOI: http://dx.doi.org/10.5772/intechopen.112150*


### **Table 2.**

*Strengths and weaknesses of the Russian innovation economy.*

An analysis of international and Russian experience in the formation of innovation clusters mainly shows the presence of practical problems in Russian implementation. Of course, there are many more reasons why developing an innovation policy for the Russian Federation could be more effective. However, some of the fundamental aspects can still be outlined:

