• Journal of the Economic Geographical Society of Korea
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• v.6 no.2
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• pp.327-338
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• 2003

The concept of industrial cluster began with the agglomeration economies occurring in a small scale place, which are mainly drawn from intense networking between companies, universities, research centers and other institutional bodies. Recently, however, as cooperation between autonomous administrative units and between industrial clusters has been more active than ever, there has emerged the concept of extended industrial cluster (EIC) and, subsequently, policy measures for nurturing it. This study focuses on the concept of EIC, mainly in the perspective of the need to adopt it into the industrial cluster literature. The study identifies the raison d'etre of EIC in the respects of the flexibility of geographic range, complementarity and cooperation between functions and regions, scale economies and productivity, and the development stage of industrial clusters. It also suggests how to establish the concept of EIC in the Korean context and how to apply EIC policy in the Korean industrial policy.