doi.org/10.52340/eab.2024.16.04.05

The world economy is facing big challenges such as digital transformation, climate change, overproduction, large amount of waste, irrational use of non-renewable energy sources, etc. What these problems have in common is that solving them in one or a few countries cannot have a global effect and requires the joint efforts of all countries. Because of this, it is important to share the innovations and experiences introduced in developed countries around the world.
The need for digital transformation and the covid pandemic has tested the resilience of clusters to the challenges. Clusters have provided a vital link between politicians and businesses in response to the pandemic. They have dealt with disruptions to supply chains and developed new manufacturing capabilities.
Cluster organizations in the 27 EU countries are mainly focused on the digital, agri-food, healthcare, renewable energy and mobility/transport/automotive industries. They provide a wide range of services and promote research, development and innovation. In 2019, a study by the United Nations Industrial Development Organization was completed in Georgia, according to which 57 clusters were identified in Georgia (UNIDO, 2019).
In the paper, the author aimed to answer the following research question: Is the cluster one of the best ways of effective digital transformation? To answer this question, the author discussed three waves of clusters' viability, as well as digital transformation as a new opportunity for clusters. Then the discussion continued on the issue of circular economy and cluster compatibility and the role of cluster member universities in the process of digital transformation.
In the opinion of the author, the proposal of the theory of clusters by Porter in the late 80s of the XX century is considered the first wave of cluster vitality. This view is discussed in the paper based on the books/papers of world-renowned researchers, namely: Porter (1998); Porter (2000); Porter, (2008); Gordon and McCann (2000); Krugman (2009); Duranton (2011), etc.
According to the author, the second wave of vitality of clusters is related to the establishment of the entrepreneurial model of the universities (University 4.0) operating in the cluster and the activation of the process of commercialization of scientific research. This issue is discussed based on the following literary sources: Ketels et al., (2006); Solvell et al., (2003); Lindqvist et al., (2013); Vesperi and Gagnidze (2023), etc. The fourth industrial revolution and the need for digital transformation have raised many questions, including those related to clusters. However, the reports of world-renowned research organizations, including the World Economic Forum (WEF, FoJ, 2023a; WEF, 2023b; European Cluster Panorama, 2021) revealed the special role of clusters in the process of digital transformation, which the author considered the third wave of cluster vitality.
In the paper, the author discusses the advantage of clusters to facilitate the transition to a circular economy. Here, clusters are considered as a network and a system. The author characterizes the social capital that is formed in clusters based on group interest (Frankowska and Cheba, 2022; Salazar et al., 2023; Solvell, 2015; Gagnidze, 2024). The phenomenon of such capital is a powerful driving force of group interest, which will organize a large segment of the population living in the cluster area to unite around a single goal and quickly adapt to changes and even change their behavior. The latter is significantly related to the formation of a circular economy, which is necessary to achieve sustainable development and sustainability. Along with the theoretical analysis of the mentioned issues, the graphic analysis developed by the author is also used in the paper (Gagnidze, 2015; 2023).
Leap-like development expected as a result of the fourth and fifth industrial revolutions (Industry 4.0 and Industry 5.0), as indicated by recognized research organizations, will radically change the situation in the labor market. These projected fluctuations are actively discussed in European Commission documents, namely: COM (2020) 98 final; COM (2020) 102 final; COM (2020) 380 final, etc. The mentioned issue is also discussed in the reports of the World Economic Forum, namely: WEF, 2024a and WEF, 2024b.
At the end of the paper, the systemic role of universities operating in the cluster for the development of the local economy is discussed. However, in the period of digital transformation, universities with remote functioning are given more room to expand the area of influence.
As a result of the conducted research, according to the author, the answer to the research question is positive. Taking into account all the above, the author of the paper formulates a recommendation to start the research of clusters in Georgia using a fundamental approach and identify the real competitive advantages that Georgia has. It is known that classical researchers of clusters distinguish two important prerequisites for the emergence of clusters, geographical and historical (Solvell, 2009, 54-55). However, the emphasis on this issue is due to the fact that in the period of digital transformation, which is undoubtedly facing all countries, clusters, as a network and system with social capital, are the best soil.
In a commonly accepted classification, conceptual work focuses on the development of hypotheses and is usually discursive. Taking this into account, the presented paper is limited and lacks the analysis of a specific cluster. The author will try to develop research in this direction in the future.

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Keywords: Digital transformation, cluster, university, system, social capital.
JEL Codes: O30, O31, O32, O33