In Pursuit of Innovative Clusters*

* This paper is largely based on the synthesis chapter (Chapter 22) of a book titled “Innovative Clusters. Drivers of National Innovation Systems ” edited by the same authors and published by OECD in June 2001. The example of indicators used for assessing innovation in the Dutch construction cluster included in the annex mainly draws on a chapter by Pim den Hertog and Erik Brouwer in the same volume (chapter 10). 2-1 Innovation seldom occurs in isolation. This is reflected in the rise of a ‘family ’ of innovation system approaches. The cluster approach is part of this growing family and can be interpreted as a reduced – form National Innovation System (NIS). A cluster can be defined as chains of suppliers, customers and knowledge centres (universities, research institutes, knowledge-intensive services, intermediary organisations) that: i) have at their disposal complementary competencies; ii) are interconnected through production chains or value chains; iii) improve joint industrial processes and end products; and iv) (possibly) participate in networks focused on innovation and technology development. Apart from reflecting the systemic character of modern innovation and interactive innovation processes an