Importance The article examines the state of the wood cluster of the Russian Federation and prospects of the cluster development. Objectives The research analyzes legislative and regulatory documents outlining areas of the industrial policy in the Russian Federation at its current stage of development. The research also studies the state and prospects of enterprises in the wood industry shifting to the innovative model of development through the cluster approach. I focus on challenging issues impeding the creation of wood industry clusters in regions, determines corporate principles for making wood industry more efficient. Methods The research relies upon the contents analysis of key categories and constructs of infrastructure transformations of industrial enterprises. The research is based on materials of the wood industry of the Russian Federation. Results I formulated my recommendations to improve the legislative and regulatory framework and subsequently tackle impediments to the wood production development. The article also determines priorities of the cluster policy in the wood industry. Conclusions and Relevance I outlined proposals to improve the mechanism for forming wood clusters as the most effective tool to enhance the coordination and cooperation and ensure sustainable development of the regional wood industry. The higher cooperation proposals will allow for better implementation of the wood industry potential so to make wood enterprises more competitive, reduce excessive import and increment export through innovative production. My own developments can be used by executive authorities in forming wood clusters, and by would-be investors in planning joint projects for development of pulp and paper production.
Keywords: wood industry, competitiveness, cluster, cooperation, State aid
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