Tourism cluster as a form of innovation activity

Abstract

Introduction. At the moment, innovation development is among key priorities in the development of Latvian economy. According to European Innovation Scoreboard assessment, Latvia joined the group of Moderate Innovators in 2016. However, its level of innovation effectiveness only reached 54% of the average EU index. That said, it has to be noted that enterprises that are innovation active in the service industry only account for 23.4%. In view of this, diverse forms of innovation activity and clusters in particular, have become more and more relevant. In 2006 European Competitiveness Council defined clusters as one of nine priorities aimed to promote and develop innovations. According to the European Commission, clustering is a key factor for successful innovation and enhanced competitiveness. Aim and tasks. The subject matter of this article are tourism clusters as a type of innovation activity. Results. Scientific research as well as practical experience of a number of countries have shown that cluster approach in tourism business is an effective instrument to enhance competitiveness both nationwide and at the level of an industry.At the present time, entrepreneurs are facing serious difficulty in converting ideas into new products and services. This is true of the national economy as a whole as well as particular industries. That said, the primary objective is the development and implementation of a program aimed at the cooperation of a wide range of social partners involved in innovation activity, who are capable of facilitating the enhancement of economic effectiveness. Conclusions. The development of tourism sectoris regarded as a priority of Latvian economy. According to Central Statistical Bureau of Latvia, tourism is a major factor of Latvia’s economic development, an important source of export revenue, and a key factor of GDP growth. The development of Latvian tourism industry is part and parcel of global tourism market. Latvia has a strong potential for the development of business and health tourism. However, Latvia’s climate, its geographic position and the lack of world-famous architecture have an unfavorable effect on its tourism development opportunities. This is the reason why it is essential for Latvia to spur innovative activity in tourism industry with a focus on clustering. Creation of new clusters in tourism industry, such as business tourism cluster as an example, as well as the implementation of formerly declared goals related to the existing clusters, will help to meet some of the objectives.