Current Situation and Issues of Japan’s Industrial Cluster Projects

Abstract

Japan’s industrial clusters are sometimes projected in inconvenient sites apart from existingagglomeration. MEXT’s Knowledge-intensive Clusters are dispersed to eighteen local regions,excluding the capital region which retains many of the country’s scientists and research facilities. In thecapital region, several state-of-the-art research centers are not networked well, making face-to-facecommunication difficult. Mobilization of knowledge-worker stocks is not always easy in such artificiallocations. They need to be equipped with quality of life and proximity to facilitate knowledge workers’sustainable interaction.Many of the current cluster projects target at life science, which tend to be more risky than ITand other industries. The United States mitigate such risks through venture business utilization andample fund provision by NIH and venture capital firms. Japan’s clusters need to effectively mobilizestartup companies and government budgets that are currently dispersed among related ministries.For region’s endogenous development, universities should provide necessary human capital andknowledge. Market needs must be closely monitored, and startups should be further mobilized.Supporting institutions should network the related parties and integrate the individual efforts. Japan’smatured and high-standard market would sophisticate life-oriented products and services. Life scienceand other technologies are to improve our quality of life.