Since the 1990s, growing interest in the relationship between clusters and economic growth has highlighted the importance of understanding their internal structures and life cycles. Still, the mechanisms underlying cluster emergence remain largely unknown, especially regarding the influence of public policies in this initial stage. This paper examines the emergence of a metalworking cluster in the Spanish steelmaking pole of Asturias, focusing on Francoist industrial policy and the regime’s relationship with regional firms.

Findings indicate that Asturias presented favorable conditions for cluster formation since the late eighteenth century. However, only the establishment of the national steelmaking champion Ensidesa in 1950 triggered the appearance of self-reinforcing dynamics, finally boosting the cluster’s emergence. This process resulted from the indirect externalities generated by the steel industry and was never part of the Francoist industrial agenda. Despite the recognized sector’s potential, the regime prioritized strategic base industries and systematically ignored calls for direct support for metalworking firms.

This article addresses the question of how the emergence of a cluster in a global innovation system is influenced by early entrants. It does so by presenting an explorative study of the emerging digital creative industries cluster in Bangalore. I find that MNE entrants develop production and technological capabilities comparatively fast within a narrow range of value chain activities with limited spillovers to the cluster. In comparison, local entrants develop such capabilities more slowly, but within a broader range of value chain activities and with higher spillovers of skills and knowledge, as well as higher participation to building a local entrepreneurial ecosystem. I propose that these effects are moderated by the size of national consumer markets as well as industry context in the guise of project lengths and technological modularity. I also point to the role of global connectivity, proposing that local entrants, in particular, leverage international personal relationships for development of not only relational, but also production capabilities.