The Impact of Industrial Clusters on Competitiveness: Based on Porter's Diamond Theory

This article analyzes the impact of industrial clusters on the competitiveness of national and regional economies based on Michael Porter's Diamond Theory. The study examines the key components of Porter's model — factor conditions, demand conditions, related and supporting industries, and firm strategy and rivalry — and their role in shaping cluster dynamics. Special attention is paid to the mechanisms through which geographic concentration of interrelated enterprises generates competitive advantages, stimulates innovation, and enhances productivity. The article also explores the applicability of Porter's cluster concept to developing economies, with a focus on Uzbekistan's industrial policy. The study assesses both the theoretical foundations and practical outcomes of cluster-based development strategies, identifying key challenges and prospects for their implementation.