This paper deals with government policies to promote innovative clusters in which firms and related supporting institutes closely interact and stimulate the innovation process. It argues that the Korean government has taken various types of policies in the process of developing clusters. The RRC (regional research center) policy program and the Semiconductor Equipment Research Center (SERC) of Hoseo University are case studies. The RRC program aims to establish a regional research network among research agents having a common interest in regionally specialized technologies, and to strengthen their technological capability. The SERC, established in 1996 as one of the RRCs, has played a successful role as the government intended. The local business environment wherein user firms and suppliers were scattered and fragmented was greatly improved as the result of the active role of the SERC.