• Journal of the Economic Geographical Society of Korea
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• v.13 no.4
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• pp.623-640
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• 2010

The aim of this paper is to explore opportunities and limitations of the top-down approach to build institutional performance by analyzing the process of local government-led cluster's initiatives. In doing so, this paper investigates processes of the design and implementation of cluster's policy as well as firms' innovative capacities. As the result, it reveals the fallacy of the local government's policy in planning industrial clusters, the inconsistence of cluster initiatives due to changes of regional vision providers, weakness of innovative performance of IT firms supported by the local government in the region. It should be concluded that Chun-cheon City did not succeed in accumulating institutional capabilities which were crucial to implement a cluster initiative.