This paper examines the deliberate state effort to develop specialised clusters and innovation systems, and identify the challenges and possible solutions in the process of developing and nurturing high-tech industries and companies in Singapore. Findings from the case studies indicate that companies born directly into high-tech industries or whose products and services have a high composition of high-tech elements are more optimistic about business prospects and tend to experience greater pace and scope of growth. They are able to leverage government support more effectively, and better benefit from resource sharing and spillover externalities generated by specialised cluster blocks (e.g. Block 71) and the innovation system present in Singapore. In view of these results, a review on government policy support for SMEs in innovation and development is critical. Companies should focus on identifying their core product strengths and leading business propositions and use them as the base to build up their innovation and technology capabilities.