Increasing competitiveness through technological development is the guiding principle of Skogstekniska klustret (The Forestry Technology Cluster). The supply of skills, industrial research and collaboration between business, society and the economy are the key tasks of the work. The cluster consists of 10 companies in northern Sweden. The combined turnover in Sweden of the companies amounts to SEK 6.5 billion. More than half of sales are exports. The cluster is currently running more than 20 projects with a view to driving forestry technological development and creating ideal conditions for acquiring key skills. To extend these efforts, the cluster has defined five focus areas: 1.Powertrains/propulsion systems and other methods/products for driving on non-bearing ground 2.Systems for more efficient extraction of wood parts/biomass for bioenergy/biorefining 3.Electrical hybrid systems for fuel-efficient motors 4.“Shared” crane tip control, i.e. partial automation of driver control 5.Systems for more effective forest care: mechanisation of planting