The role of the cluster approach in forming a competitive innovative business environment

The article presents a theoretical and empirical analysis of the cluster approach as a key instrument for shaping a competitive, innovation-oriented business environment amid globalization and digital transformation. The article aims to conceptualize the role of cluster-based cooperation in fostering innovation, technological modernization, and firms’ international competitiveness, while also identifying barriers to implementing cluster policies effectively in Ukraine compared with the European Union. The research methodological framework combines system-structural, comparative, and institutional-evolutionary approaches, supported by statistical analysis of innovation activity among Ukrainian enterprises for 2018–2024. The study employs both a qualitative synthesis of theoretical models and a quantitative evaluation of innovation performance indicators, focusing on the correlation among cluster participation, R&D expenditures, and regional competitiveness. The findings reveal that in the context of the knowledge-based economy, the classical assumptions of cluster theory require revision: geographical proximity is no longer a decisive factor for success, especially in service and digital industries, where virtual and transregional clusters emerge through digital platforms and communication technologies. The research shows that modern clusters are evolving into complex, innovative ecosystems that integrate a broader range of actors and form flexible network structures that balance competition and cooperation. The article shows that in the European Union, clusters serve as strategic platforms for implementing smart specialization and fostering internationalization. Meanwhile, in post-socialist economies, including Ukraine, a lack of institutionalization and unified methodological standards limits their transformative potential. The article concludes that shifting to an ecosystem-based cluster model can enhance regional innovation capacity, attract foreign investment, and accelerate integration into global value chains. Keywords: cluster approach, innovation ecosystem, competitiveness, innovation policy, smart specialization, network interactions, institutional environment.