This paper analyses potential mechanism of regional knowledge transfer in region with poorly developed innovation infrastructure (the Autonomous Territorial Unit Gagauzia, Republic of Moldova) through interactions between regional major players of the Regional Innovation System - the educational and research institutions, small and medium enterprises (SMEs) and local authorities. Solution of this problem can be found in modern studies of territories innovation development through the clustering processes. Through the empirical study - innovation potential analysis of local SMEs - we proposed advantage mechanism which focused on the one type of knowledge cluster – Innovation and Educational Cluster. The symbiosis of entrepreneurs, government agencies, educational institutions and business service providers with the regional core - University, allows to increasing exchange flows of innovative knowledge between all members of the cluster and distributing them to the entire region and beyond. The results and proposals of this study formed the basis of the “Program of increasing the innovation potential of Gagauz SMEs”.


Regional development, Innovation cluster; Entrepreneurship


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