ABSTRACT
In this chapter, the essence and antecedents of cluster dynamics, in particular, its upgrading in international value chains were discussed. Moreover, the core and types of cluster upgrade in international value chains were analyzed. Following the global value chain governance theory, we focused on value added as a measure of the cluster position and advancement in international value chains. The literature review enabled the identification of determinants of cluster upgrading and the formulation of research hypotheses regarding the influence of non-hierarchical governance, absorptive capacity, innovation capacity, and public support on cluster upgrading.
