Economic development of the country depends on the economic development of the regions, and also largely on the development of mono-profile municipal entities on the territory of these regions – single-industry towns, which is largely determined by the ability of mono-cities to diversify their economic activities. One of the ways
to implement this (without hindering the development of the profile industries) is the application of a cluster approach to mono-cities, with their consideration in the role of cluster elements operating in the region. Such an approach will allow coordinating the regional policy with respect to its proportional development with the strategic policy of municipalities. The report reveals the essence of the concept of "mono-cities", reflects the main problems of the development of such entities, and studies the cluster approach as a means of improving single-industry towns and regions in general. In particular, the paper features the conditions under which the cluster members can receive positive effects that would be external to mono-cities, as well as the ways mono-cities themselves can obtain a part of the synergetic effect from the activity of the regional cluster.
monocity, regional cluster, diversification, positive externalities, synergistic effect