From Fragmentation to Integration: Development Process of Innovation Clusters in Korea

Abstract

This paper deals with the cluster concept for understanding the status of formation and development of innovation clusters in Korea. It identifies the patterns of clusters through overall review of the various clusters in Korea. The study revealed that production clusters were built either by government policy or by investment of large chaebols during the 1960s and 1970s. In the 1980s and 1990s formation of more advanced types of clusters like those of R&D was also initiated by the government. Although there are various types of clusters in Korea, innovation clusters in which firms and related supporting institutes closely inter act and stimulate the innovation process are at a primitive stage. Most clusters are per forming parts of a value-adding chain, lacking many essential capabilities and technopoles needed to sustain regional economic activities. Moreover, there are a number of hurdles for further development of the clusters that leads to innovation clusters.

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