Abstract: the work is devoted to the study of the cluster approach as one of the main tools for modernizing the regional economy. The main goal of the work is to determine the significance of the cluster approach. The objectives of the study are to define the essence of the cluster approach and identify its influence on the development of the region in the context of the internal market strengthening policy. The relevance of the issue is determined by a high degree of clustering in the domestic economy. The paper considers the essence of the cluster approach, which consists in the formation of competitive clusters, the organization of their activities in a certain industry direction, taking into account their geographic location, climatic conditions, available resources and subcontracting opportunities, which will ensure sustainable development of the cluster entities. It is emphasized that the implementation of the cluster approach contributes to a change in the structure of priority sectors of economic development, the level of innovative development and investment attractiveness of the region. The indicators of modernization of the regional economy under clustering conditions within the framework of the import-substituting cluster policy are analyzed. The cluster approach in the field of import substitution is considered on the example of the Rostov region of the Russian Federation. The concept of “industrial innovation-territorial cluster entity” (IITCE) is defined. The search for directions for the effective implementation of the cluster approach will contribute to economic growth of both the constituent entities of the Russian Federation and the country as a whole.
Keywords: cluster approach, modernization, gross regional product (GRP), innovative technologies, investments, regional economy, economic growth, industrial innovation-territorial cluster entity (IITCE)