This paper explores changing concept of city in the context of globalization with innovation city and examines the characteristics of innovation city along with regional and national competitiveness. It is agreed that construction of innovation city by relocation of public institutions for balanced development of the country has valid logic. However, there are weak possibilities of innovation within the innovation city. Further more it is not a proper solution for the level up of national and regional competitiveness through this policy. The main logic is that physical relocation of institutions do not guarantee innovation of region through integration into globalization network resulting from the scale difference between nation and globe. Rather this paper suggests that regional innovation policy should performed in accordance with regional conditions and for the better competitiveness of nation and region, decentralization of power is needed. Then a region could have connection with global pipeline based on endogenous development power.