Extant literature gives the impression that formulation of a firm’s strategic intent is a unilateral process solely confined to a single firm. This study respond to calls to expand inter-firm relationships study beyond the narrow dyadic relationship focus and not solely conceptualize collaborations as one of firms’ strategic intent to implement mechanistic growth strategy. Hence the following research question: How are the collaborative networks of private and public partnership organized to enhance competitiveness for actors in a cluster? And what are the perceptions of the actors in the cluster on the usefulness of clustering and networking? The objective is to map the salient features of existing clusters and networks and unveil firms’ perceptions of benefits accrued from clustering. Theoretical lens builds on clustering as an interactive learning process, and happens in the interaction between actors as open innovation postulates and that innovation is born out of reshuffling resources inside and outside of the firm and considers the mutual value creation between the involved. Methodology draws on focus group interviews, semi-structured and open-ended survey in cluster initiatives and strategic networks in Kronoberg region. Findings show that networking, dialogue, and experience exchange were the recurrent themes when firms expressed the benefits of collaboration in a cluster/network setting. Conclude that unveiling the salient features of existing clusters and networks and perceptions of the actors on gains accrued from clustering and networking, accomplished in this study, is the first step in a cluster development process. The implications are that relationships of firm in a domestic network are critical avenues for acquisition of resources and knowledge for enhancement of competitiveness, and as bridges to other networks in other countries. We present an explanatory model of cluster and regional competitiveness which emerged from our findings.