Investigating the formation and emergence of local education clusters involving universities and regional stakeholders, this study develops an institutional framework to analyze the interactions and coordination among key cluster actors with respect to the evolution of local strategic human resource development (HRD). A policy document analysis concerning the latest local HRD and semi-structured interviews with various stakeholders of local universities, local government functionaries, and local enterprises were conducted. Based on the findings, the sharing of resources, knowledge, and experience, along with the exchange of professional dispositions, skills, and identity orientations among actors within local clusters, fosters an enriching educational environment for local universities and HRD. This collaborative environment facilitates cooperation and the strengthening of joint efforts among government entities, university faculty, and industry stakeholders in nurturing and advancing local human resources. However, some obstacles hinder this development, resulting in the seeking of quick success and instant benefits. Based on these key findings, various Chinese regions have tried to establish an approach conducive to the development of HRD-oriented higher education quality and outcomes. However, comprehensive efforts to stimulate cluster actors towards their collective implementation are necessary.