Economic development is one of the top priorities of EU support to Georgia.Through its more recent programmes the EU has been supporting cluster approach – creation of business clusters that help small and medium-sized companies (SMEs) become more competitive and create more and sustainable jobs through teaming up with businesses in the same industry.

This project builds on the experience of successfully piloted initiative and stimulates and supports cluster development in three sectors: apparel production, construction materials and tourism. It works with government entities - Ministry of Economy and Sustainable Development, Enterprise Georgia and other government agencies - to drive cluster development for the whole country and contribute to fostering socio-economic development in Georgia and its regions.

1. Enhanced business performance of private sector actors in the apparel, construction and tourism sectors through innovative cooperation mechanisms.
2. Improved institutional framework for cluster and business development.

- A national cluster development programme elaborated and implemented together with Ministry of Economy and Sustainable Development, Enterprise Georgia and other government entities.
- Key agencies (such as Enterprise Georgia) benefit from capacity building to improve existing and introduce new services to support SME development.
- Market-oriented cluster in the apparel sector is developed and piloted. The cluster will include Georgian apparel producers throughout the country. By uniting in a cluster, they will benefit from technical advisory to improve operations, strengthen international market linkages and succeed in exports.
- Market-oriented cluster in the construction sector is developed and piloted. The cluster will be composed of construction materials manufacturers, relevant business associations and other stakeholders. Activities cover promotion of local production of higher added value, more diversified and innovative building materials; adherence to relevant technical standards and norms and focus and quality and sustainability of construction materials produced in Georgia.
- Thematic Clusters in Tourism Sector - Development and pilot implementation of three market-oriented clusters in Imereti and Kakheti regions: (1) Kakheti and Imereti Local Wine and Food Tourism Cluster will include local food producers, wineries offering tourism and hospitality services, restaurants and guesthouses selling local cuisine, wine bars, sector and sector associations; (2) Imereti Authentic Accommodation Cluster will cover guesthouses who provide or aim to provide additional tourism services and experiences in an authentic setting; (3) Imereti Cultural Heritage Cluster will unite a variety of stakeholders - artisans, artists, local food/art and crafts producers, museums, protected areas, tour operators, guides - in development of tourism products and services to promote the cultural heritage of the region.