Due to the fact that there is a process of formation of industrial parks in Azerbaijan, the assessment of the regional industrial potential in this context is particularly important. As a consequence, the article is devoted to the application of cluster approach in the regions of Azerbaijan in order to identify potential regions for the creation of industrial parks. For that we used Porter's methodology for defining clusters in the regions of Azerbaijan. As the result of application of the methodology we identified the regions of Azerbaijan that meet the criteria, namely, Baku, Absheron economic region and Nakhichevan economic region, in which, taking into account the presence of the main competitive advantages that an industrial park should have to attract a large number of investors, we advise to create both specialized and universal industrial parks. In other regions (economic areas) of the country, with the aim of their even development, we suggest to create agro-industrial, industrial-innovative parks and other modifications of industrial parks through various sources of financing.
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