1691 Trust in Networks and Clusters Patrice Braun University of Ballarat, Australia T introduction It is widely accepted that technological change under- pins a global economy and that geographic location and concentration is of foremost importance for regional development and competitive advantage. The realities of global competition require an understanding on the local level of global markets and the complexities of interac- tions with multiple stakeholders along global supply and value chains. There is increasing evidence that the performance of existing enterprises is significantly improved by networking and clustering. Especially for small- to medium-size enterprise (SME) owners, which play an important role in the economy of countries, local networks represent a potentially complementary response to insecurity arising from global economic developments. In the new economy, networks and networks, online networks and emerging grass roots economic community developments. Clusters and networks are considered as different yet interdependent structures, whereby networks underpin the growth and sustainability of clusters (Rosenfeld, 2001). Network cohesion, common culture, commitment and trust among network stakeholders have been iden- tified in the literature as key features to facilitate col- laboration between firms for mutual understanding and benefit (Håkansson & Snehota, 1995; Putnam, 2000). When these characteristics are present, collaborative and associative network forms can enhance economic competitiveness of regional business domains and en- able regional and local capacity building (Leibovitz, 2003). Porter (1998a) discusses competitive advantage as being created and sustained through a highly localised