Industry clusters are the main carrier of regional competitiveness, while constructing collaboration networks among enterprises is a key element of sustainable development of industrial clusters, in which the government plays as an important driving force. This paper reviews the major policy initiatives by European governments in support of cluster collaboration network construction, and taking Upper Austria as an example, it provides a detailed study of policy priorities, specific tools and the role orientation of government. Finally, by summing up the experience of European countries, the paper provides some useful lessons of better development of industrial clusters for China’s local governments.