Theoretical and methodological aspects of investment provision of the development of cluster formations in the agricultural sector

Abstract

This article explores the theoretical and methodological aspects of investment support for the development of cluster formations in the agricultural sector of Ukraine. It is determined that in the context of globalization and increasing competition, adequate investment support is a key factor in improving the farm sector’s competitiveness and ensuring the sustainable development of rural areas. The article examines the current state of development of cluster initiatives in the agricultural sector of Ukraine and identifies the main problems and prospects for their development. The experience of the European Union countries in stimulating cluster formations in farm production and their impact on the diversification of the economy of mono-specialized regions is studied. Based on the analysis of data from the European Cluster Collaboration Platform, the index of maturity of Ukraine’s cluster policy is assessed, and the key factors influencing its development are determined. It is substantiated that the primary sources of financing cluster formations in the agricultural sector include budget financing, bank lending, private investment, financial resources of cluster participants, international technical assistance, and alternative sources, such as crowdfunding and the issuance of securities. It is revealed that the key problem is the lack of a specialized, targeted strategy for the development of cluster policy, which leads to a fragmented approach to the development of cluster formations, as well as insufficient policy coherence and the lack of effective monitoring and evaluation mechanisms. However, financial decentralization and international support through the Ukraine Facility instrument have opened new opportunities for attracting investment in the agricultural sector. It is studied that the use of a project approach to financing and the active involvement of small and medium-sized enterprises in international cooperation and innovation projects can contribute to creating an effective cluster policy. Considering the experience of EU countries and using the available support tools, Ukraine has the potential to stimulate investment and ensure the sustainable development of agricultural clusters. Keywords: agricultural sector, cluster formations, integrated structures, investment support, state support, financing, competitiveness, sustainable development, innovation, Ukraine Facility, financial decentralization, small and medium-sized businesses.