The goal of the thesis is to study reasons and motivations for Norwegian maritime firms to operate and cluster in Singapore. Several theories for the localization of economies relate these motivations to market reasons, not due to knowledge resources. As Singapore has been through the transition from a manufacturer- to a knowledge economy, reasons for locating here for Norwegian firms are obviously not only because of low costs or market proximity. The second main element of the paper looks at the role of innovation enhancing institutions, mainly in the Oslo region, and to some extent in Singapore. One important element in clustering is the role of social interaction and tacit knowledge as geographical proximity facilitates trust and flow of this tacit information, crucial to innovation. The analysis of this type of institution will be illustrated through Oslo Technopole and Oslo Maritime Network and their role in enhancing interaction, innovation and productivity in the maritime cluster of the Oslo region. By focusing on these two main elements, namely what motivates location abroad for maritime firms and what stimulates their innovative capabilities in a specific region, this can hopefully provide some reflections on contemporary issues in Norwegian shipping, though the focus is not through tax incentives as location motivations. The results of the data indicates that there is a necessity to look beyond tax issues, especially if there is an interest that the Norwegian shipping cluster in general remains within the national or regional borders of Norway and Oslo. Social interaction is of great importance in innovation processes and one of the main motivations for locating abroad. Furthermore, the role of institutions in the Oslo-region for facilitating these processes is at a starting stage, but can in the future play a significant role in the differentiation of the shipping cluster in Oslo compared to other maritime clusters.