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The purpose of this study was to conduct an analysis of the impact structure of the innovation cluster and to suggest new policy directions for the Gumi National Electrical & Electronics Industrial Complex. To undertake this study, the Structural Equation Model (SEM) was used. Six components of an innovation cluster were chosen: agglomeration economies, labor market, networking, embeddedness, governance, and collective learning, all of which were utilized in the SEM by Capello (1991) and Morisini (2002). Data collection involved surveying target enterprises by means of an interview and a questionnaire. Each question response was based on a scale of 1 - 5. In total, 152 questionnaires were returned. The analysis of this data as applied to the SEM model indicates that three of the six components impacted relatively more on innovative performance than the other three. The more highly impactful components are agglomeration economies (0.475), networking (0.380), and collective learning (0.375). In contrast, labor market, governance, and embeddedness were relatively less impactful on innovation performance. Therefore, in order to enhance the Gumi Industrial Innovation Cluster, there are some new policy directions to be considered. First, the development of networking and collective learning is necessary among innovation agents such as the enterprises, government, universities, and research institutes. Second, R&D needs to be strengthened and increased support for marketing is required. Informal means of communication need to be developed so as to increase cooperation and to exchange information, etc. Lastly, there needs to be a focus on developing the innovation cluster rather than focusing on supply, physical structures, or industrial aspects.
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