Clustering theory assumes that companies gravitate towards each other on the basis of locally and regionally specific resources and supply chain characteristics, which lead in turn to innovation and high-value economic development. In line with such thinking, UK government policy has devolved certain functions to regional development agencies such as the encouragement of linkages and systems to facilitate knowledge transfer and address skills needs within regional clusters. Within this broad context, the research reported here focused on the analysis and development of an action plan for the development of marine and maritime sector skills within the South West region, which led to the establishment of a new institutional framework of three sub-regional centres of excellence based on industry and training collaboration to provide demand-led vocational training. The overall issue here is how sector skills shortages can be tackled by strategic intervention at a regional level and collaboration between stakeholders at a sub-regional level. (Contains 2 figures and 3 tables.)