The analysis is dedicated to a widely spreading phenomenon of global importance—clusterisation, which can be described as the tendency of interrelated companies and associated institutions to concentrate in a particular geographical location. This process has the growing importance to the development of the competitiveness under the dynamic circumstances of today’s economy. The study analyses trends of clusterisation in Lithuania and the potential to form clusters, illustrated with the example of the Lithuanian furniture industry. The furniture industry’s potential to be subject of clusterisation can be described by: variety of activities that companies perform and diversity of production, the structure of production, which includes the entire value (cost) production chain from raw material to different types of furniture; the form of ownership among companies and their geographical location: there are groups made of 4-5 companies that are able to accomplish a unified strategy. Yet, efforts to cooperate and coordinate activities are minimal. Relations between furniture/wood industry companies and inter-related business companies are limited, so it is necessary to stimulate their communication and cooperation. One of obstacles to realize the potential of clusterisation is lack of venture capital. The cluster policy should be aimed at individual country or region needs as well as peculiarities of a certain structure. The economic policy that induces clusterisation is a specific feature of the most advanced counties. The need of clusters is stressed in the main strategic and programming documents in Lithuania. The clusterisation concept serves as a possible instrument to form the economic policy. Lithuania is on the first stage of forming the cluster based economic policy
