The developmental state literature has typically focused attention on the role of nation-state actors. However, cities are increasingly important centres of innovation and commerce (OECD, 2006). Thus as national state policy instruments are progressively governed by international conventions (Wade, 2003), can non-national level actors influence industry development? This paper explores the role of policy in the development of Calgary's (Alberta, Canada) wireless cluster. The paper shows that while the Alberta Government was important in the early phase, it withdrew leaving the cluster struggling through recent crises. Policy suggestions that are pro-market and pro-innovation and relevant to the context are indicated.