Economic growth has virtually dropped to depression era levels in recent years as the domestic economy was and is still being impacted by severe competition in the international market. With the competition in the markets of most industries, how can we deal with the different stressful challenges to gain a dominant position in regard to competitiveness? There are numerous factors preventing many domestic traditional industries from being transformed, such as: the lack of innovative technical knowledge and competence, the limited necessary funds for manpower and equipment, the restriction of our government¡¦s subsidy clauses, etc. Accordingly, industry holders still keep and run their existing traditional industries, thereby raising obstacles to the promotion of the regional innovative system. The key point to solve the problem is to raise the knowledge technology level for the regional industry clusters. How can our government¡¦s policy help to assist the related industries to form the clusters and practice regional balanced development? The goal is to raise innovation in the necessary technologies; only then can an enterprise¡¦s business be sustained. According to the above, industry clusters constitute an important key to promote industrial development. The regional innovative system emphasizes the reactions and flow among organizations, including government, academia, research organizations, intermediaries, the financial market, the information network, etc. The thriving growth in the domestic economy relies much on the strengthening of innovation policies regarding urban areas. This research will discuss Chinese, Japanese and Korean governments¡¦ achievements in regard to the policies concerning regional innovations and management. The aims of the discussion include the following: 1. Investigating these 3 governments¡¦ successful cases of their innovation policies and strategies of industry clusters, in order to offer the greater Kaohsiung area a reference for practicing an innovative system; 2. Applying the results of the successful cases as suggestions for domestic traditional industries; and 3. Through integrated comparisons and analysis, substantial suggestions and measures for future development are proposed for the interaction between industry and academia, the enforcement of the administrative management regulations of the central and regional governments, the clustering strategies, etc. In addition, new energy, new materials and high technology industries are advised as a direction for the overall industrial development in the greater Kaohsiung area. Finally, the issues of industrial pollution of the environment, increasing the employment opportunities, and the cross-region and cross-nation innovative interactions are also explored.