| dc.description.abstract | Along with the era of knowledge economy, it has not only accelerated the speed of information dissemination, but also accelerated the speed of knowledge and technological innovation. Issues about how to transfer knowledge into tangible benefits through innovation process and increase its competitiveness through industry cluster have been discussed widely. However, it can’t guarantee a successful development if only gathering all kinds of factors into an industry cluster. Therefore, Michael PORTER (1990) has pointed that the development of a cluster will not only be influenced by environmental, cultural, and other congenital factors; the government is also one of the key factors. There must be some elements behind a success industry cluster. So in this study, it attempts to explore how actors interact with each other to create a good innovation environment, then to enhance the performance of local innovation.
According to Lundvall and Edquist’’s studies, they indicated that organizations and institutions are the cores if innovation clusters; they have key influences on innovation performance and ability. Hence in this study it adopted the national innovation system approach to observe Finland. After reviewing the history of Finland, in this study it found that the key of such a high level of creative energy is not due to have a particular organization or system, it’s because each organizations produce, spread and apply new knowledge through interactive learning process, and stimulate innovation sparks at the same time. In other words, the main reason of its success is to set up an incentive mechanism to improve co-operation to spread the knowledge and make it be used widely, then to stimulate the interaction and cooperation between each organizations.
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