In the last decade of the 20th century, the concept of clustering became the central idea of competitiveness and economic development of the national economy. Clusters take the form of a system of interconnected companies and institutions that are, taken as a whole, greater than would be the sum of its parts. They play an important role in promoting competitiveness, and they have significant effects on enterprises, companies, universities, governments and other institutions within an economy. The formation and development of industrial clusters should be accepted and encouraged as soon as possible, particularly in Serbian industry, as the need for them is unambiguously clear. They could improve the competitiveness of industry at national and international stage through the growth of productivity, innovation and start-up, which would be ultimately reflected on the achievement of important goals, such as production growth, exports and employment.

Key words: Industry, clusters, competitiveness, productivity, innovation.

JEL Classification: L22

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