In Thailand, the government introduced financial incentive package, technology development program, provision of benchmarks (in technology, marketing, management, and governance), policies were devised so that SMEs can integrate effectively into various industry value chains or clusters and become involved in more supportive networks such as academic institutions, government agencies and other firms in related and supportive industries (Brimble,
Oldfield and Monsakul, 2002). This network relationship created new information flow and knowledge base for SMEs.
China, Malaysia and Thailand benefited from these policies reform, network relationship and the new support infrastructure. The Indonesia’s experience suggests that neglected cluster linkage to markets was one of the reasons forwhich SMEs failure. That is, economic advantages