Sustainable development is one of the fundamental and most important objectives of the worldwide policy. The conducted research shows that sustainable development (SD) is increasingly important in the consciousness of the EU countries, which can be viewed through a prism of the undertaken projects. This paper raises the issue of clusters and their significance in the development of a sustainable economy. The article explores trends in the European Union policy related to sustainable development and clusters. The purpose of this study is to find an answer to the following questions: How can clusters contribute to sustainable development and what are the key factors that ensure this process? To achieve the goal of the article a systematic study of the literature and reports was carried out. Moreover, the analysis of the activity of European clusters in the context of sustainable development was performed. Next, the examples of cluster projects focused on sustainable development were presented. It was shown that the clusters contribute a smarter and sustainable development by succeeding in technological and scientific results, developing new technologies for emerging industries, creating new business activities, enticing major technology companies, and connecting local firms into world-class value systems. Furthermore, the clusters participate actively in sustainable development as they promote knowledge creation, joint learning, technology transfer, as well as collaboration, and sustainable innovations. Finally, clusters facilitate the sustainable upgrading of small and medium enterprises and encourage the participation of stakeholders in the process of sustainable development.

Purpose:The paper aimed to check the activities of local governments contributing to the development of the innovation economy in Poland as well as to find the answer to the questions if local governments both support innovations, as well as implement innovations themselves. Moreover, the purpose of the paper was to find out if activities of local governments depend on their type (rural, urban, urban-rural) or not? Approach/Methodology/Design: In order to achieve that the method of desk research, quantitative and qualitative research were used. The first part of the research was based on a literature review and the second concerned the development of the survey questionnaire based on the literature review. The questionnaire survey was developed and the whole population (2479) of local governments in Poland, was investigated, in early -using the CAWI method. Findings: We have got the answers from 453 local governments. The conducted analysis showed what kind of innovation is undertaken by Polish local governments frequently, we also find out what kind of activities they undertake to increase the innovation economy. Practical Implications:LGUs should continue implementing the innovations resulting from ICT infrastructure and e-government at local level development. Both the world trends as well as last pandemic time confirmed the need of boosting innovations in this area. Secondly, the LG authorities should cooperate with business actors, coming from the other public sector, academia, and civil society. Originality/Value: The research has enabled to develop a conceptual understanding of the relationship between local government and innovative activities.

The aim of the research is to assess the targeting of financial resources granted by the Lower Silesia province self-government as part of Village Renewal in a Lower Silesia competition based on types and categories of projects implemented in 2008-2018. A properly directed management of local communities can have a positive impact on the development of the entire region. Not only do large EU funds have a real impact on improving the quality of life of rural residents, through cooperation initiatives, but small grants financed from the funds of province self-governments also do. An example is the Village Renewal programme – the longest-running regional programme for activating local communities. Activities in the field of village renewal implemented in Lower Silesia since 2008 indicate the dynamic progress of social participation. The analysis of projects co-financed from the province self-government proved that they were mainly directed at supporting the development of socio-cultural infrastructure as well as sports and recreation and leisure infrastructure. The experience of the self-government of the Lower Silesia province shows that external intervention in local systems through targeted regional projects opens new possibilities for shaping the socio-economic policy of rural areas.