CLUSTERS AS A MODERN MODEL OF DEVELPMENT OS SMALL AND MEDIUM ENTERPRISES IN THE TRANSITION COUNTRIES
: This paper deals with the issue of cluster as a modern model of development of small and medium enterprises. Clusters as a model for the development of SMEs in recent years are current as in countries in transition, in contrast to developed countries where the model has long been present. It is understandable that clusters are not sufficiently developed in the transition countries, and the reasons should be sought in inadequate development and transfer of innovative technologies, insufficient skills of employees and the lack of partnerships between businesses, which is a critical factor in the development of clusters. The aim of this study is to determine and present factors of cluster development in the application of the concept of small and medium enterprises as a critical factor in economic growth of transition countries.