
Digital transformation has become an important priority in manufacturing. The role of public policy in supporting effective digital transformation, particularly among SMEs, has therefore attracted increasing research attention. Governments are increasingly recognised as potential orchestrators of this process because they can bring together firms, intermediaries, technology providers and regional support bodies. This study examines South Korea's Manufacturing Innovation 3.0 programme (2015–2024) as a longitudinal case study to explain how government-led orchestration supports SME digital upgrading and what limits it may have. The analysis examines the programme's network design, orchestration mechanisms and reported outcomes, including the conditions that enabled or constrained SME participation. While many participating firms report operational improvements, benefits are uneven and broader system-level impacts are less consistently evidenced. We propose a refined framework for government-led orchestration and discuss implications for more inclusive programme design and better measurement of spillovers.