Cluster Governance in Upper Austria: Driving Collaboration
Business Upper Austria’s unified approach offers a compelling model of cluster governance for Interreg Europe stakeholders
As policymakers across Europe seek to strengthen regional innovation and economic resilience, the cluster governance model in Upper Austria stands out as a compelling example of strategic coordination, partnership, and impact. Recognised as one of the continent’s most advanced regional innovation systems, Business Upper Austria (Biz-UP) offers valuable insights into how cluster governance can drive SME competitiveness and structural transformation.
At the heart of Upper Austria’s success is its centralised cluster management model. Unlike fragmented initiatives seen elsewhere, the region’s eight sector-focused clusters - spanning Automotive, Building, Cleantech, Plastics, Food, IT, Mechatronics and Medical - operate as dedicated business units under the legal and operational umbrella of Biz-UP, the official business agency of the region.
This coordinated structure enables a shared strategic vision while retaining operational autonomy. Each cluster is managed by a team of experts and guided by an Advisory Board made up of business leaders, academics and stakeholders. Crucially, the chairpersons of these boards participate in the Biz-UP overarching governance board, which includes regional ministers and the CEO of Biz-UP Werner Pamminger. This direct interface between cluster leadership and regional policy ensures that real-world business needs inform policy development - a key principle aligned with Interreg Europe’s policy learning objectives.
Werner Pamminger believes “the cluster governance mechanisms developed in Upper Austria over the past 20 years has been constantly evolving, we are extremely proud of our structures as they help us to develop a culture of corporate collaboration for innovation and in the end trust among each other.”
From left: Christian Altmann (Business Upper Austria), Food Cluster Manager Heidrun Hochreiter (Business Upper Austria), State Minister for Economic Affairs Markus Achleitner, Food Cluster Advisory Board Spokesman Andreas Haider (Unimarkt) and Werner Pamminger (Business Upper Austria) © cityfoto/Roland Pelzl
The funding model is equally instructive. While initially supported through public funding, Upper Austria’s clusters now operate primarily on a public-private basis, with approximately 70% of their budgets self-financed through member fees, paid services, and project acquisition. This fosters both agility and accountability, while still preserving access to public strategic support where necessary.
The results speak for themselves. With over 2,200 member organisations—the vast majority of which are SMEs—Upper Austria’s cluster ecosystem is vibrant and inclusive. It is supported by 75 full-time cluster staff, who facilitate over 300 events and 100 benchmarking groups annually. Thematic areas such as talent development, digitalisation, sustainability, and international collaboration are central to the clusters’ missions.
Biz-UP’s model is also characterised by a strong focus on results. Performance metrics are embedded in annual planning, and clusters undergo regular benchmarking at both regional and European levels. This culture of measurement and peer learning reinforces alignment with broader EU innovation and cohesion objectives.
The governance framework in Upper Austria exemplifies smart specialisation in action. It integrates public strategy with entrepreneurial discovery processes, maintains continuous stakeholder engagement, and delivers on-the-ground impact through targeted support and innovation partnerships.
From left: Werner Pamminger (Business Upper Austria), State Minister for Economic Affairs Markus Achleitner and Automotive Cluster Manager Florian Danmayr (Business Upper Austria) © Bodingbauer
For Interreg Europe regions aiming to strengthen their own cluster strategies, Upper Austria offers a transferable and proven governance blueprint. The model demonstrates how clarity of structure, stakeholder co-ownership, and strategic alignment can transform clusters from isolated initiatives into engines of systemic regional development.
As Interreg Europe peers seek out good practices that bridge policy and practice, Business Upper Austria’s approach offers both inspiration and a roadmap for action.
For further information on Clustering in Upper Austria: https://www.biz-up.at/cluster-kooperationen/uebersicht