Business landscapes are changing at global, regional and sectoral levels as well as the social and ecological contexts. In order to understand what these changes are and how clusters are dealing with these, the research explores drivers of change and cluster dynamics using a Complex Adaptive Systems (CAS) approach. The research uses Energy Valley as its main case study to gain insights into these changes. The research has developed a conceptual framework for cluster development. One of the main reasons for this research is the signicance of clusters in the European Union’s competitiveness strategy, Innovation Union (EC, 2010).