Industrial Cluster-Based Policies in Korea: Implications for Vietnam

Industrial Cluster-Based Policies in Korea: Implications for Vietnam

This paper analyzes the cluster-based policies to improve firms’ innovation capacity by promoting business-academia networks, shifting industrial complexes to clusters in South Korea. By analyzing these policies, the paper presents that government’s role is supportive in forming clusters in Korea. Also, the paper examines the initial outcomes of cluster development under government policies. By using Shift-share and Location Quotient analyses, Changwon Mechanical Engineering Cluster is quantitatively analyzed as an example of contribution of cluster to industrial concentration and competitiveness in regional economy under government policies. Also these analyses are applied to Dongnai province of Vietnam to understand the current stage of complex development and make comparison between Korea and Vietnam. Finally, policy implications to promote industrial clusters are drawn for Vietnam from Korea’s experience.