Methodological Approach to Identifying Regions with Potential for SME Clustering in the Republic of Armenia

Multidimensional nature of business clusters sheds light on the fact that the choice of an approach to clustering plays a vital role in its further development. Moreover, it is hardly possible to identify the real impact of a cluster project on a country’s economy in the short-term perspective. This, in turn, serves as a high risk for contemporary countries. Hence, there arises the necessity to identify the exact region (or a group of regions) along with a precise cluster specialization sector, in order to develop a model that can leverage the economic growth. Considering the fact that no cluster currently operates in the Republic of Armenia [1], there is a necessity to develop a unique approach to regional SME clustering based on the understanding that the decision to create a cluster is complex and involves uncertainties as well as interdependent factors. Hence, Author proposes a new methodological approach to identification of regional potential for SME clustering in the regions of Armenia.