The purpose of this work is to develop a methodology to assess and monitor cluster structures. The authors’ proposed method assesses the level of cluster structure development by considering cluster transformation analysis in the information and communication sectors of the regional economy, prerequisites for cluster formation, and the current level of digital cluster development in the region.

This paper argues how the Fourth Industrial Revolution can change the global production chain and how core technologies function in industries. Furthermore, it focuses on how innovative clusters have to evolve to respond the Fourth Industrial Revolution. Last, but not least it also analyzes whether or not innovative clusters can play their roles as technology innovation hubs in the real world and CPS in the Fourth Industrial Revolution era.

The importance of an enabling environment for business and entrepreneurship, particularly for SMEs is complemented by the need to improve the impact of the economic-financial crisis from Europe, since disparities of economic development and structural economic differences still persist. In this context, the implementing clusters support policies became a priority for the European industrial policy. In addition, the Europe 2020 Strategy specifically stipulates the importance of clusters for business, especially for SME.

Despite their popularity and rapid proliferation and development, local cluster policies have met mixed results. This paper argues that an important reason for the limited success can be found in the way policies have been grafted onto a particular policy rationale, namely of “cluster building”. Responding to this critique, authors propose an alternative rationale, that of “policy leverage”, and a governance model which, in the pursuit of “policy leverage”, presents a new approach to intelligence gathering and to collective strategy-making.

Cluster policy implementation requires careful management if the different actors are to be properly engaged and committed. This article argues that a great deal rests upon the quality of leadership both at the strategic level of regions, or other administrative scales, and of individual projects or initiatives such as cluster support organisations. Furthermore, it examines cluster policy in the Austrian region of Styria where its successful application has assisted the transformation of the region from a crisis point in the 1980s.

The presentation explains the EU role in promoting clusters, provides an historical background, shows the relation between clusters and innovation with regional examples, and presents the European Cluster Observatory

Although there is increasing consensus that the presence of clusters enhances economic outcomes, there is little consensus on whether there is a case for policy intervention, as there can be pros (if government efforts are used to upgrade a region's competitiveness by supporting existing agglomerations) and cons (if governments attempt to create agglomeration artificially).