1 Introduction Technology clusters have become a powerful policy tool in the knowledge-based econ- omy (Dunning, 2000; OECD, 1999; 2001; Porter, 1998; Scott and Storper, 2003). One of the key issues that have drawn particular interest from policy makers and academics is the role of the state in cluster formation. Since Porter's work on the subject (1998; 2000), more recent studies have provided empirical support for the role of the state as a facilitator in new industry cluster development, mostly in the West European and North American contexts. There are relatively few empirical studies of cluster policies and the role of the state in cluster development in Asia. With this study we attempt to present empirical findings on clusters and to critically evaluate cluster policies in Asia. In this paper we aim to develop a theoretical understanding and to assess policy implications of cluster development in the context of knowledge-driven, globalizing Asian economy. On the basis of the global production network (GPN) perspective, we offer a comparative framework for exploring how the state in the knowledge-driven global economy can play a role in cluster development in Asia. More specifically, we examine both the strengths and the limitations of recent biotechnology cluster policies in South Korea and Singapore, paying attention to the similarities and differences in the cluster Endogenous versus exogenous development: a comparative study of biotechnology industry cluster policies in South Korea and Singapore Yong-Sook Lee Department of Public Administration, Korea University, Anam-Dong, Seongbuk-Gu, Seoul 136-701, Korea; e-mail: yongsooklee@korea.ac.kr Ying-Chian Tee Department of Humanities, Bedok South Secondary School, 1 Jalan Langgar Bedok, Singapore 468585; e-mail: tee ying chian@moe.edu.sg Dong-wan Kim Graduate School of Environmental Studies, Seoul National University, 599 Gwanak-ro, Gwanak-gu, Seoul 151-742, Korea; e-mail: vivadanny@gmail.com Received 15 July 2008; in revised form 20 March 2009 Environment and Planning C: Government and Policy 2009, volume 27, pages 612 ^ 631 Abstract. With this study we aim to develop a theoretical understanding and to assess policy implications of cluster development in the context of a knowledge-driven, globalizing Asian economy. We will examine both the strengths and the limitations of recent biotechnology cluster policies in South Korea and Singapore. We argue that the two states share similar experiences in terms of the state's proactive role as a cluster creator, but that they have promoted biotechnology industry clusters in contrasting ways due to different national politics and political institutions. South Korea places more emphasis on endogenous capabilities, while Singapore highlights the importance of exogenous capabilities in biotechnology cluster development. By analyzing the advantages and disadvantages of these contrasting cluster policies, we evaluate the long-standing debate between endogenism and exogenism in the study of regional development. Instead of these dualistic approaches, we employ a global production network analytical lens for understanding the dynamic interactions between local- ized growth factors (endogenous) and globalizing external factors (exogenous) in the context of Asian biotechnology cluster development. We adopt a multipart strategy that includes archives, surveys, in-depth interviews, and secondary source data collection in order to enhance the validity and reliability of the data. doi:10.1068/c0881b