Institutional and functional aspects of clusterization in investment provision of the agricultural sector

The article explores the theoretical and practical aspects of clustering as an effective mechanism for investment support in the development of the agricultural sector of the economy. The essence of cluster formations, their characteristic features, and differences from other forms of business integration are considered. The main approaches to creating clusters are analyzed, among which territorial, sectoral, functional, technological, and institutional are distinguished. Particular attention is paid to the functional approach, where the coordination of participants in the value chain is key. The author’s model of investment support for developing the agricultural sphere is presented, which reflects the interaction of the state, science, regional specifics, and investment flows. The sources of financial support for cluster formations in the agricultural sector are detailed, including budget funds, bank lending, private investments, participants’ funds, and international technical assistance. An overview of the European Union’s cluster initiatives for 2014-2020 and 2021-2027 is provided. The importance of a comprehensive approach to clustering, which combines the efforts of business, science, and government and ensures proper financial and institutional support for stimulating the economic development of the agricultural sector, is emphasized. The prospects for further research in the formation and functioning of clusters in Ukraine are noted. The study confirms the significant potential of cluster formations to stimulate economic development, especially in the agricultural sector. Effective clustering requires an integrated approach combining business, science, and government efforts to ensure adequate financial and institutional support. Keywords: cluster, clustering, agricultural sector, investment support, institutional aspects, functional aspects, European Union.