One of the organizations that have been considered is Sunnmore which is one of the largest shipbuilding in Norway, it has been operational for the last 40 years and it has created over 5000 jobs within and without Norway in different capacities and sectors. The organization has been able to take over most of its business from local and international shipping firms and has effectively managed to strategically position itself top of the shipping industry. The competitiveness of Sunnmore industries is based on the cluster innovation. in this context, a cluster as defined by Porter as a physical concentration of firms and establishments in a given field. They typically encompass a series of connected industries and other entities required in the production of goods or services that are important to the competition. From an analytical point of view, four main systematic improvements may be identified in the cluster operation and these are local user-producer interaction, incremental shop floor innovations local knowledge spill over and finally corporation between various organizations along the manufacturing and supply chains. Shipyards are often viewed as a source of innovation since they are the place where various professionals interact and exchange ideas. In addition, in shipyards the local shipping contractors who are in charge of designing and construction of new ship play a very important role in in the mediation of the demands and specification on the product in terms of yard and equipment supplies. . .