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ECONOMIC THEORY OF CLUSTER DEVELOPMENT OF A REGION WITH A HIGH VALUE OF PETROCHEMICAL COMPLEX

Purpose: The purpose of this study is to develop the theory of regional economics in the context of the cluster organization of its petrochemical complex. 
Methodology: The research methodology includes the use of cluster analysis and network planning of performance indicators of the petrochemical complex of the Republic of Tatarstan. 
Findings: It was found that over seven years of the existence of petrochemical cluster in the Republic of Tatarstan, no synergistic effects were achieved because of its activities. At the same time, significant financial resources were allocated to the cluster organization of petrochemical complex in this region and an administrative apparatus was created. The very concept of cluster development of the region in science and practice has long proved its viability in many countries, such as the Republic of Tatarstan since Michael Porter. This is because the Soviet times is provided with a highly developed industrial base and inexpensive labor in the field of petrochemical technologies, and the training of professional specialists in the region is provided by a concentration of higher education institutions. 
Implications: The economic and mathematical approaches used in this study enable it to single out the forms of activity in the cluster that enable it to increase its efficiency to the greatest extent with the least costs. Comprehensive network planning of cluster innovation based on graphical and potential methods presented in the study provide competitive advantages to small- and medium-sized companies.