In recent years, some experts have shown that urban competitiveness is more important than national competitiveness. They have also argued that innovation will make cities more competitive. The purpose of this paper is to create Korean urban competitiveness index, and to also highlight strategic aspects for enhancement of urban competitiveness of metropolitan cities based on innovation in Korea. First, we will present various factors and indicators of urban competitiveness based on three components for innovation: formation of cluster, human capital, creative economy. Available literature and statistical analyses will be used. Second, scores of urban competitiveness will be developed based on Analytic Hierarchy Process (AHP). Evaluation of scores with weights will be used for this purpose. The resulting weights are 0.3672 for the formation of cluster, 0.3318 for human capital, and 0.3010 for creative economy, respectively. Finally, we present urban competitiveness using the standardized T-score. The most competitive city based on innovation is Daejeon(1st), followed by Gwangju(2nd) and Daegu(3rd). Three least competitive cities are Incheon (6th), Busan(5th) and Ulsan(4th).