The article examines the evolution of theories regarding production localization and cluster development as applied to the children's toy industry. The aim is to identify the gap between classical and modern approaches and to justify the need for a proprietary cluster model. The methods employed include historical-logical reconstruction, systematization, classification, and comparative analysis. The theories are categorized into three groups: classical location theories; theories of transaction costs and cooperation; and theories concerning knowledge, innovation, and global value chains. A comparative analysis based on quantitative parameters (the share of transport and transaction costs, the rate of product assortment renewal, and the type of coordination) demonstrated that classical theories are inapplicable to the production of children's toys, while modern theories require institutional adaptation. The scientific novelty lies in substantiating the need to synthesize the second and third groups of theories and in developing an original cluster model that takes into account the social significance of the products and Russian institutional conditions. The practical significance lies in the potential to use the results to formulate a regional cluster policy for the children's toy manufacturing sector.
production localization; children’s toys; cluster model; location theories; transaction costs; global value chains; regional economics
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