Cluster organization of extractive industries in northern regions: a comprehensive assessment method

Abstract

The spatial organization of productive forces, the efficient use of available facilities, and the production potential assessment of economic sectors in a given region are topical issues. The Republic of Sakha (Yakutia) is a large resource-dependent region of Russia, remarkable for the geographical dispersion of deposits over a vast territory and the complex transport and power supply infrastructures. This paper presents a comprehensive assessment of the feasibility of cluster organization in the subsoil use sector in the Republic of Sakha (Yakutia), the Russian Federation, factoring in the existing and prospective economic zoning and the existing potential. The republic was divided into zones based on a cluster framework of the subsoil users. The study used statistical data on the municipal districts and financial indicators of the extractive industry companies. The integrated method was applied in the assessment, and the performance index of the identified cluster territories was calculated on a ten-point scale. The identified zones were rated by resource and production potential. The general cluster zone performance index was calculated. It appeared feasible to cluster the extractive industry in the studied region as it can increase competitiveness of local companies and contribute to the socio-economic development of its municipal districts. The proposed method can be applied for comprehensive assessment of the subsoil use sector in northern territories.