Subject. This article discusses the issues of innovative and digital development of the economy. Objectives. The article aims to justify the benefits of cluster cooperation and networking between different structures. Methods. For the study, we used systems, logical, structural, and comparative analyses, generalization and statistical methods, and the cluster-network and institutional approaches. Results. The article substantiates the role and position of small business in the innovation development of the Sverdlovsk Oblast and identifies trends of innovation and digital advancement. Conclusions. The cluster theory, supplemented with the Triple Helix concept, can be a basis for rationale for effective ways of integrating economic agents. Small innovative business has significant potential for sustainability, but it needs additional financial support from the State.
Keywords: small and medium-sized business, innovation, cluster, digitalization
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