Clusters are concentrations of companies that reached a critical mass and that produce together all elements of the value chain. This research will look at the Design Services Industry and its clusters. The forming of clusters will be illustrated by examples from The Netherlands and Taiwan. To structure the research an adapted model of the Porter’s diamond is used to analyze the two countries. Porter’s diamond discusses the microeconomic foundations of competition that influence and stimulate the forming of clusters. The four major components of the model are factor conditions, demand conditions, supporting and related industries and strategy, structure and rivalry. These components can be influenced by governments and chance. The adaptations to the model consist first of making the components of virtual clusters more explicit by mentioning elements that can be leveraged by information technology And second by adding attention to the attraction and retaining of talent. The Design services industry has a special need of talent which some also call the creative class. The analysis identified several differences between the two researched countries. These differences can be seen as opportunities for improvement by the design service industries in both countries. Keywords: Design, Cluster, Factor conditions, Demand conditions, Supporting and related industries, Strategy, Structure, Rivalry, Government, Chance, Information Technology, Talent, Creative class.