Reassessing European cluster policies: Determinants of effective policy formulation

Abstract

This study examines the determinants of effective cluster policy design in Europe, with the aim of identifying how governance, funding, and stakeholder engagement shape outcomes. We analyse 21 policy instruments across eight territories using a mixed‑methods approach: expert‑panel benchmarking, descriptive analysis with Eurostat and ECCP/ESCA data (2018–2022), and hierarchical cluster analysis of seven design factors. The results reveal five distinct policy archetypes, differentiated by budget scale, ERDF/S3 alignment, duration, and co‑financing rules. Most instruments are ERDF‑funded and S3‑aligned, and a simple “political effort” measure, policy budget as a share of national GDP, proves useful for comparing territories of different economic sizes. Between 2018 and 2022, all territories expanded their cluster base, though persistent barriers remain, including bureaucracy, trust deficits, and limited managerial capacity. The findings highlight the importance of coherent governance, sustained funding, and active stakeholder involvement, and provide actionable recommendations for tailoring policy tools to cluster maturity. By clarifying constructs and reporting replicable measures, the paper advances transparency in cluster‑policy evaluation and offers practical insights for policymakers, regional development agencies, and cluster managers.