The NGC281 West molecular cloud is an excellent test case for studying star formation in the clumpy interface between a \hii region and a giant molecular cloud. We present here a study based on new high resolution radio and near-infrared data. Using the IRAM 30-meter telescope, we have mapped the interface in the \cotwo, \coone, and \cs transitions with FWHP beamwidths <= 22''. We have imaged the same region with the VLA in the 20, 6 and 2 cm continuum bands to obtain complementary maps of the ionized gas distribution with angular resolutions <= 13''. In addition, we have obtained near-infrared J and K'-band images to detect young stars in the interface. The 30-meter data shows the molecular gas is concentrated into three clumps with masses of 570, > 210, and 300 \msun and average volume densities of 1.4, >1, and 2 x 10(4) \cm. We detect \cs emission in two of the clumps, indicating peak densities in excess of 5x 10(5) \cm are attained in the clumps. A comparison of the \co line data with the 20 cm continuum image suggests that the molecular clumps are being photoevaporated through their direct exposure to the UV radiation from neighboring OB stars. The luminosity and extent of the observed 20 cm emission is in good agreement with theoretical predictions. We use models of photoevaporative flows to estimate the pressure exerted on the clumps by the ionized gas and find that it exceeds the internal, turbulent pressure of the clumps by a factor of a 2.5. Although a pressure equilibrium is not excluded given the uncertainties inherent in determining the pressures of the ionized and molecular gases, our best estimates of the clumps and flow parameters favor the the existence of low velocity shocks (1.5 \kms) in the clumps. The clumps exhibit broad, non-gaussian lineshapes and complex kinematical structures suggestive of shocks. Further evidence for shocks is found in a comparison of position-velocity diagrams with published numerical simulations of imploding spherical clumps. We discuss the possibility that the knots of \cs emission may trace gas compressed by converging shock waves. The K'-band observations show a rich cluster of primarily low mass stars in the \hii/molecular interface, which we argue is divided into two distinct sub-clusters. We associate one sub-cluster with the two clumps nearest the OB stars, and the second sub-cluster with the third clump. The two clumps nearest the OB stars contain an embedded population, suggesting that star formation is ongoing. We discuss the impact photoevaporation is having on star formation in these two clumps. We find that photoevaporation is dispersing the molecular gas from which the cluster is forming and estimate that the molecular gas will be completely evaporated in 5 Myr. Deep K'-band imaging of the two clumps show that the stars are detected primarily on the sides of the clumps facing the OB stars and in the adjoining \hii region. We examine three explanations for this asymmetry: displacement of the clump centers from the cluster center by the acceleration of the molecular gas through photoevaporation (i.e. the rocket effect), unveiling of young, embedded stars by ionization-shock fronts, and the triggered formation of stars by shocks advancing into the clumps. If shock compression is indeed ongoing in the clumps, then we argue that there is a good case for shock triggered star formation.