ENSURING EFFICIENCY CONTROL OF INSTITUTIONAL ENVIRONMENT OF THE CLUSTER

As experience of the developed countries shows, the best solutions to the problems related to ensuring competitiveness of enterprises can be found within clusters. Drawing up mechanisms for government regulation of the cluster will facilitate formulation of strategies and plans of cluster development which is an important competitive advantage of the modern economy. The purpose of this study is to research theoretical and methodological approaches to ensuring efficiency control of the institutional environment of the cluster. The approach to solving this problem is based on institutional methodology which offers innovative solutions within the frames of local economic development policies. Furthermore, the paper thoroughly examines impacts of government regulation on business development. Particular attention is given to analyzing public private partnership institutions in order to reveal their innovative features. The authors express the opinion that implementation of the principles of economic control of cluster development, as well as monitoring efficiency of transaction costs may help to reduce the negative effect of transaction costs on economic development of Russia's constituent entities. The paper offers the method for calculating performance efficiency of an institution for economic agents in the cluster, as well as efficiency of informal institutions including cases when their economic informality lies in the 'grey (shadow) area' i.e., illegal by nature. Basing on studies of foreign and Russian experience of cluster formation and identification of risks in cluster development, the article formulates recommendations for implementing control principles to ensure effective cluster policy and reduce transaction costs in order to improve government regulation of clusters and development of the country's economy.