【正文】 had their origins in particular local factor conditions, local demand, and the presence of a related industry. Based on different kinds of knowledge (Ishobaoui, 2020), there are two types of petitive clusters: techno clusters, which are hightechnology oriented, well adapted to the knowledge economy。s industrial cluster development based on innovation system. Development of Industrial Policy in Indonesia In its development, the struggle of national industry at the end of 196039。D institution, university and government in order to support industrial cluster development. This can be seen from the relationship framework in KPIN document which include the three actors. Unclear role of Ramp。 畢業(yè)論文（設計） 譯文原文 系 部： 經(jīng)濟管理系 專 業(yè)： 工商管理（會 計 學） 學 號： 0742821135 姓 名： 指導教師： 2020 年 04 月 20 日 INNOVATION SYSTEMBASED INDUSTRIAL CLUSTER DEVELOPMENT: A COMPARATIVE STUDY OF INDUSTRIAL CLUSTER IN INDONESIA AND SOME ASIAN COUNTRIES Abstract This paper is described industrials development and their policies in Indonesia. Beside that, this study analyze industrial cluster development which is conducted by using innovation system approach and is made parison it with some countries in Asia. This study shows that the industrial cluster is designed to be an agglomeration based on the work of the raw material for production, financing institutions, well provided human resources, and other economics infrastructure. There is lack of interaction among actors in the cluster and Ramp。D activities to support innovation in the cluster. Comparative analysis of industrial cluster development in Japan, Taiwan, and China shows that clusters are supported by development of transaction market. It also involves innovation stimulus from the benefit obtained from the presence of the cluster which shows the concentration of large enterprise with various human resources in smaller geographic area. We suggest a remendation regarding to industrial cluster development to increase technological and innovation capability within cluster in order to make more petitive industrial cluster in Indonesia. Keywords: clusterbased industrial development, innovation system approach, Indonesian Industrial policy Introduction Nowadays, economic activities are moving toward knowledgeintensive business, acpanied by rapid development of technology in globalized economy era. This condition has impact on the tight petition, and rapid change in business environment. Domestic manufacturing products are directly pete with foreign products and business world must accept reality that technology advancement has bee a reason on the obsolete production facilities, short product lifecycle, and lower profit margin. At the other side, globalizing economy inevitably testifies whether individual regional economies and SMEs in them can pete and survive by showing their own petitiveness or not. Once it was widely believed that the very development of transporting and information technology and borderless economy inevitably break the barrier of distance and make regional economies or industries almost meaningless. Nevertheless, surprisingly a sort of reincarnation of regionalism started in the 1980s, and many academics and researchers then ignited debates as well as numbers of empirical research works on the importance of regional industrial agglomeration and local working (Mitsui, 2020) For the last three decades, industrial agglomerations have played a leading role in the development of cities and regions and have formed a new industrial organizational basis for economic planning and development. The industrial clusters are determined by the trade dependency and concentration of small enterprises at the city and township level (Isbasoiu, 2020). It is also known that Alfred Marshal (Sonobe and Otsuka, 2020) has studied three benefits of the presence of industrial cluster, as follows: 1. Information spillovers 2. Specialization and division of labor between panies 3. Development of skilled labor markets Conside