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The paper explores the economical approaches in innovation development in Ukraine.The application of hierarchical cluster analysis for 27 Ukrainian regions in 2001 to 2005confirms the low convergence between three clusters. The sufficient industrial andscientific endowment inheritance creates opportunities to exploit potentials and toimprove position in cluster 2. The research strengthens the dependence of regionalcluster classification on the input factors of production combination in Ukrainianregions. Our results anticipate that the special regional policy measures may be theeffective approach for regional inequalities reduction, innovation development, and theeconomic growth stimulation.
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