A Comparative Study of the Dynamics of Innovation Systems in three Clusters from Korea and Malaysia Yun Jin Joseph Hyo*, and Avvari V. Mohan** * 26th Floor, Samsumg Financial Plaza 1188, Dalgubeoldaero(St.)(Deoksan-dong), Jung-gu, DAEGU, 700-742, Korea Ph: + 82-53-430-8674 . Fax: + 82-53-431-8669 E-mail:
[email protected] ** Author for Communication Nottingham University Business School, University of Nottingham –Malaysia Campus, Jalan Broga, 43500. SEMENYIH. (Sl). Malaysia Ph: + 603 8924 8261 / + 6016 6830871 E-mial:
[email protected] Abstract: ‘Spatial proximity’ of firms is being increasing cultivated by governments in Asia with policies driving the development to ‘cluster’ firms. Based on Innovation Systems theory, this ‘clustering’ of firms is hoped to help increase interactions, not only among firms, but also of firms with other ‘institutions’ like universities, trade associations, government entities etc.. Which in turn would facilitate sharing of knowledge and increase capacity for localized learning by firms, and thus leading to innovation.. This paper analyses and compares innovations systems in four Asian clusters from Korea, Malaysia and India. The paper identifies leading entities, infrastructures and functional capacities for R&D within these clusters. Then the structural combinations and interrelationships of R&D producing entities such as university and national research institutions, R&D achievements delivering entities like techno-parks and related associations, and also R&D consuming entities such as corporations are also studied. The specific role of governments in these innovations systems is also investigated and lessons are drawn with implications for policy makers and industry. 1. Introduction The notion of clustering or regional development is increasingly being associated with global information resources, development of advanced skills, continuous innovation and diffusion of new technologies.