Research has increasingly paid attention to the different types of inter-organizational collaboration. However, only few studies examined the multi-level ties and external linkages established between clusters to achieve certain goals. What has been much less well explored in the literature is the link between cluster networks and capacity issues. Therefore, this paper aims to further our emerging knowledge on inter-organizational collaboration on the level of cluster networks and the related topic of organizational capacity. We apply to our study the collaborative and absorptive capacity frameworks that enable the identification of separate elements in cluster networks which contribute to the capacity-building. Based on our analysis of empirical case of network of clusters, Cosmetics Clusters International Networks (CCIN), we investigate significant capacity-building elements such as purpose, structure, communication, resources, and intra- and extra-network knowledge systems. Our findings demonstrate that many elements of CCIN are present and lead to capacity-building and underline the following: increasing collaboration and connectivity among network stakeholders, enhanced communication capacity according to the increased number of information links and higher level of active communication, enhanced capacity related to resources due to the combination of human and financial capitals, skills, and knowledge, more information availability, higher level of knowledge spillovers, and higher number of internal and external linkages.