Ivars Kassalis


In economic theory there are two types of business entity integration: horizontal and vertical. Cluster environments may include both types of integration—companies producing the same products are interconnected as well cooperating with the suppliers and supporting entities. One explanation ofLatvia’s competitiveness current problems is pure level of business entities co-operation and business integration. The global market could be entered more easily and efficiently when companies and suppliers from a particular sector are interconnected in geographically proximate groups (clusters)—efficiency is heightened, greater opportunities for innovation and export are created, and favorable conditions reached for integrated development. Business entity cooperation and integration is a gateway to integrated development and higher competitiveness in the global markets. Cluster environment is stimulating integrated development of all the business entities within the cluster. The main objective of the paper is to find out the industrial cluster influence to integrated development. To reach this goal different scientific research data and papers were analyzed and experts interviewed.