IntroductionA civilized society constantly strives to maximize the level of utility, which means satisfying unlimited needs in conditions of limited resources. However, in practice, the question of the maximum welfare of the society is a very difficult and often undecided problem, because it is related to the effective utilization and saving of resources.Since the beginning of the period of industrialization, the most pressing problem has become the need for efficient use of resources and the need to save resources for society, which is directly related to the growth of innovative capabilities of industries and technological progress.Since the 90s of the 20th century, Professor Porter has described in his works a completely new way of increasing the innovative capacity of industries and improving competitiveness, which is connected with the development of the Triple Helix cluster model. This model has been developed since 1990, when, thanks to the Marshall Plan, industries, scientific research centers and state institutions were integrated in order to modernize industries and introduce innovations..Professor Michael Porter, a well-known Harvard University researcher, relates the strategic importance of cluster development to the efficient use of resources, which is determined by the geographic concentration of specialized industries and the effect of convergence. Regions where clusters are developing are distinguished by unprecedentedly high indicators of social, economic and ecological well-being.Professor Porter conducted research with Temple University professor Mercedes Delgado and Michigan Technological University researcher Scott Stern. Their studies have confirmed that the closer industries and scientific research centers are to each other, the faster and more intensively the spread of knowledge and innovation occurs.According to Professor Porter, Professor Delgado and Assistant Professor Stern, the ideal case is when institutions related to their activities, scientific-research centers and government institutions participate in improving the innovative capabilities of industries and they are gathered in the territory of one geographical region..The convergence effect resulting from the reduction of geographical distance creates cluster dynamics, which is indicated by innovative technological achievements and their active implementation in the economic activity of industries, resulting in the smart specialization of industries..Smart-specialization makes it possible to achieve the maximum level of welfare of the society, in the conditions of limited resources, which is primarily manifested in the improvement of the social, economic and ecological environment..There are several models of clusters in the world that have highly developed countries. However, practical experience shows that the Northern European countries have the most effective model in terms of the maximum level of public welfare. Their competitiveness indicators are unprecedented, in terms of income levels, access to education and health care, as well as improvement of intellectual capital and human resources, which is confirmed by many studies conducted by United Nations agencies of special competence.According to the 2023 ranking, Finland, Denmark, Iceland and Sweden are the closest to achieving the Sustainable Development Goals, while Norway is in second place in the world according to the HDI indicator.After the collapse of the Soviet Union, the Baltic countries were able to successfully share the experience of the Northern European countries, that is why it is necessary for Georgia to implement and develop the Northern European model.Based on the practical experience of the Baltic countries, the Northern European model can be adapted for those countries that belong to the post-Soviet countries and where the process of forming state institutions and reforming education is still underway, and the economy has not yet been transformed from a planned to a market type, Georgia is one of those countries.
