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EN
Innovative financial instruments, in the context of the funding schemes of the European Union, are different from funding by way of direct subsidies. These financial instruments can be divided in two large groups: instruments offering risk capital and equity capital and debt instruments. The instruments help to engage resources from the private sector in projects which might be considered too risky without the said instruments and the implementation of which would be impossible or related to significantly higher expenses for the promoter of the project. As seen from Estonia’s perspective, up until now the use and impact of innovative financial instruments have generally met the expectations. In view of the diversity of areas and target groups of the innovative financial instruments planned within the framework of European Union’s Financial Framework 2014-2020, it may be presumed that several new instruments will be successfully implemented in Estonia.
EN
The paper examines the ways in which business clusters contribute to an accelerated development of what are called problem regions. The author illustrates her theoretical analysis with examples of selected regions whose economic development has been accelerated by the establishment of production clusters. The adopted method of research includes an analysis of the selected aspects of economic theory and selected case studies of business clusters around the world. Specifically, the paper focuses on the American state of Arizona as a region with a developed market economy; the southern Indian state of Karnataka as a developing region; Scotland as a region excessively dependent on declining industry; and Slovenia as a region in the process of economic transformation. Business clusters are currently the most mature form of business organization that increases the probability of favorable economic effects in a problem region, the author says. Favorable economic effects generated by business clusters include economic cooperation and integration, external scale effects, internal synergy effects, as well as the multiplier and accelerator effects. All these effects improve the competitiveness of cluster members and consequently also of the host region, leading to accelerated economic development in the area.
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