In Israel, regional clusters serve as a mechanism for regional development, achieved through the integration of interests, pooling of resources, knowledge transfer, and the facilitation of agglomerations. This study gains insights from two EU regional development programs, LEADER and URBACT, to potentially benefit the regional clusters in Galilee, Israel's northern periphery. The research examined five municipal clusters in Galilee, aiming to identify their distinct characteristics and place them within a wider theoretical and comparative framework. A qualitative research approach was adopted, involving semi‐structured interviews with the clusters' CEOs and an analysis of pertinent policy documents. The findings suggest that Galilee's municipal clusters encounter challenges similar to those faced by the EU's LEADER and URBACT programs. These include establishing regional networks, achieving recognition for their capabilities, and cultivating trust and cooperation gradually. The CEOs shared their experiences in navigating the challenges posed by wary mayors and government ministries. The recognized success of these clusters, as evidenced in policy documents, could signify a shift from Israel's traditional centralist political culture to a more decentralized power structure.