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In modern conditions of development, the connection of small and medium enterprises into clusters is an increasingly important and current trend. Constant changes taking place on the global market, the growth of competition and the changes in the business of many companies, encourage them to connect into clusters and, in this way, to compete with large enterprises. In that way, small and medium-sized enterprises retain their market position, as well as legal and business independence and achieve significantly better results. Enterprises, also grouped into clusters, have a comparative advantage, which is based on cooperation, greater flexibility and their specialization. In addition, connecting into clusters also leads to an increased competitiveness of enterprises, due to the introduction of innovations, the development of new technologies, the increase of productivity, the acceptance of new quality standards. The aim of the paper is to point out the importance of the theoretical aspect of clusters as an important element of business infrastructure and to emphasize that the development of clusters is essential for the development of small and medium enterprises, considering the fact that they enable them to become more productive and innovative, as well as more competitive compared to the period when they operated independently and separately.

Clusters as an Expressive form of Business Infrastructure (Annex Theory Analysis)