ABSTRACT
This chapter analyses a specific form of networks called 'clusters'. It dedicates various inter-organizational networks and summarizes their basic principles. The chapter provides the main definitions to present the main similarities and differences between these networks. It extends the analysis to the governance issue and to give an overview of different aspects of multi-level governance in relation to different types of governance mechanisms. Clusters are at the core of enterprises' innovation and value-added processes. But clusters include different players who might have diverging views about the choice of technology, the positioning of the products and the allocation of the revenues and profits. Convergent governance mechanisms should be adopted to prevent private players from being the only dominant actors in the governance process. In Europe, cluster management organizations have emerged and have aimed at further improving organizational structures and governance, increasing the degree of cooperation within the cluster and supporting the sustainability of the cluster.
