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The monograph focuses on the topical issues of the cluster approach to the formation and development of the region's economic system in the context of becoming an innovative model of its development. The theoretical fundamentals of innovations, main innovation strategies, as well as issues and problems related to the state regulation of innovation activity in Ukraine are investigated.The monograph examines spatial changes of industry. The expediency of applying the cluster approach is substantiated. The principles and the algorithm of industry clustering have been formulated, new forms of cluster organizational structures have been elaborated, the strengths, weaknesses, additional opportunities and threats to the functioning of integrated structures have been modeled. The management model of the industry cluster development and government measures for its support are proposed.The monograph is intended for researchers, professors, doctoral students, postgraduates, masters as well as higher education institutions, employees of public administration and local self-government bodies, entrepreneurs and wide professional public administration.