The purpose of this chapter is to develop a theoretical and analytic framework within the context of African small and medium-sized enterprise clusters. Drawing from multiple perspectives the chapter develops a model that clarifies the concept of innovative performances and identifies five measurable dimensions of innovative performances. Data about 194 firms located in a leading African automotive cluster in Ghana were collected and analyzed using logistic regression estimation. The study finds high variability with regards to a firm’s innovative frequency, innovative speed, innovative diffusion, and innovative protection. Also the logistic regression estimation revealed that knowledge driven firms which invested in knowledge, share knowledge, and establish linkages with knowledge based sources were more likely to report ‘all round’ innovative performance. The chapter has contributed to the debates on entrepreneurship, innovation, and geographical clustering in the context of Africa. It has also provided a useful framework for guiding policy makers and practitioners aiming to manage and stimulate innovative performances in Africa. Key words: Ghana, SME clusters, innovative performance, variation.