LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

The clusters have been assessed in three categories: of their market potential, market
structure and environment.
Financial cluster
The financial cluster has a high market potential and a medium potential of products
currently offered in Tbilisi. It also demonstrates a medium rate of the job market increase
as well as a medium salary level. As for the market structure the financial cluster has an
advantage of the lack of substitutes and of an easy access to new technological and
organisational solutions. The environment means mainly the application of new
technologies. The political situation in the country as well as its economic situation are
moderately attractive. Social indices indicate low attractiveness for the cluster’s services,
which probably results from the general economic situation of both local residents and
businesses. The financial cluster has received a general mark of 1.1 (the maximum mark
is 2.0), which means that the cluster’s attractiveness and its growth perspectives slightly
exceed the medium level. It should be noted, however, that the cluster is going to develop
more dynamically when the local economy and the local residents’ economic situation
grow.
Education cluster
The education cluster demonstrates high growth potential due to the increased demand
for re-training services for adults and young people’s educational needs. Because of the
economic conditions in which local educational organisations operate the existing
education product has a medium growth potential. Over-supply of teachers as well as low
salaries do not provide favourable conditions for higher benefits and more employment in
the sector. The sector market structure and its environment are highly attractive due to
many customers, the shortage of alternatives, the political situation and social
expectations. Low marks concerning the cluster’s attractiveness result from the
employment and salary growth parameters, insufficient use of new technologies as well
as from low productivity. The constructed corporate city development plans should
particularly focus on the education cluster. With its good didactic and training facilities, a
market oriented offer and highly qualified stuff the cluster will obviously become one of the
fastest growing segments of local market. Its potential will be even more important as a
support to one of the main factors of the city competitiveness, i.e. the skilled workforce
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