Has been established according to the Decree of the President of Ukraine in December 2011 The only body in the executive power of the state, which allows the government to hold a dialogue with the business in a fairly close contact. Our mission is the creation of appropriate conditions for establishment and maintenance of business. Actual successor of the Committee, which existed since 1991

The Administration is responsible for reforms of: - system for issuing permits; - licensing system; - supervision (control) issues in the sphere of economic activity; - state regulatory policy issues.

State Administration of Ukraine for Regulatory Policy and Entrepreneurship Development Entrepreneurship Development Law of Ukraine «On the development and support of small and medium entrepreneurship in Ukraine» Ukraine: 94,3% - small enterprises, 5,5% - medium-sized enterprises 5,2 million people are employed in small and medium business (25% of economically active population) They до 15% of gross domestic product

 Area: 12,777 squared kilometers  Population: approx. 1 mln. 250 th. People  Density: 97 persons for 1 squared kilometer  Nationalities and languages: Ukrainian, Russian, Rusyn, Hungarian, Slovak, Romanian, Gypsy  Administrative center: Uzhgorod

Situated in the Carpathian Mountains, Zakarpattia Oblast's economy depends mostly on trans-border trade, vinery and forestry. The oblast is also home to a special economic zone. The oblast's main industry includes woodworking. Other industries include food, light industry, and mechanical engineering. The foodstuffs segment in the structure of ware production of national consumption is 45%. The total number of large industrial organizations is 319, compared to 733 small industrial organizations.

enterprises National authorities and local self- governments NGOs

Factor 1. Role and place of cluster economy in Zakarpatia region Development Strategy for Factor 2. Research results regarding the perspectives and expediency of cluster formation in certain industries of the region. Factor 3. Practice of industrial networking in the region. Factor 4. Specific of economic and social development of Zakarpatia as a mountainous region. Factor 5. Opportunities for cross-border cluster formation, taking into account the geographical position of Zakarpatia Factor 6. Role and place of clusters in the project of new National Strategy of regional development support

5 strategic priorities were approved in the Zakarpatia Region Development Strategy for Human development and living standards improvement Establishment of a competitive and viable economy Enhancing of cross-border cooperation ( border transport hubs, logistical centers, industrial parks) Tourism, resorts and recreational sphere development Establishment of spatial harmony and environmental protection (infrastructure development)

Scientific research results (according to joint Ukraine-Switzerland FORZA project) show the perspective and expediency of cluster-building in tourist industry, forestry, wood processing in Zakarpatia region

There is a lack of long-time and widespread practice of cluster development and successful operation of industrial networks in Zakarpatia region. This fact reduces the competitiveness of the region

In the framework of joint Ukrainian-Canadian project PRISM in 2012, the Zakarpatia Rural Areas Development until 2025 draft Program was presented (most rural areas are in the mountains). This draft Program also includes paragraphs on industrial networks (clusters). Similar programs for rural mountainous areas development were also created by research workers in Uzhgorod National University and Zakarpatia Regional Centre for socio-economic studies of the Academy of Sciences of Ukraine

Background and expediency of cross-border different types cluster creation were justified and substantiated by several cross-border cooperation projects during in the framework of different technical aid programs with EU support, particularly the projects concentrated on SME development and support in border regions of Ukraine and Poland, Ukraine and Slovakia, Ukraine and Hungary, Ukraine and Romania and also on the development of information centers for tourists, formation of cross-border network of institutions that support SME development and marketing centers (Association of SME and innovations development, Agency of local development and information resources “Europolis”)

Activization of cluster development in Zakarpatia region will raise the competitiveness of its economy and thus – standards of living. What needs to be done: - Financial decentralization and deconcentraion of powers - Legislation development at local and national level - Establishment of effective cooperation between public authorities, local self- governments, research institutions and organizations of business support infrastructure - Creating conditions for accelerating the development of innovative entrepreneurship in the region, particularly in tourism, agricultural and forestry sectors of economy - Creation and maintenance of new research centers, technoparks, business incubators