2024 Volume 70 Issue 4 Pages 368-387
The Tohoku region (the northeastern part of Honshu Island, Japan) hosted a number of processing and assembly-type industries, particularly the electrical and electronic equipment industry, as well as factories in the garment sewing industry. It also became an important site for supporting the division of labor structure in these industries while attracting surplus labor from rural areas. However, from around 1993 to the beginning of the 2000s, the economy reached a major turning point, experiencing a remarkable reduction in employment and witnessing the collapse of the branch plant economy. However, looking at the process that followed, there was no unidirectional industrial decline, but rather a path of restructuring accompanied by new growth. Through these analyses, our research has found the following points. (1) A certain “depth of agglomeration” has brought stability to regional economies, but how should the entrepreneurial climate fostered in some regions be connected to the next generation? (2) The risk of leaving local economies in the hands of factories that share a small part of the global production network remains significant. (3) The contrast between regions that are chosen by companies and those that are not is becoming more apparent than ever. Finally, (4) the introduction of businesses that utilize regional resources and bring about regional circulation of funds and other resources will contribute to the sustainable development of regional economies.
