Abstract
Industrial restructuring in the changing global economy has brought about the uneven regional development. The restructuring processes include macro economic change in the national and international economy, the changes among industrial sectors, and the intervention of national and regional policy. High performance of the Japanese manufacturing industries is an interesting theme for not only domestic scholars, but also foreign researchers. The effects of industrial policy in Japan have been discussed. The relation between industrial policy and regional policy has not been systematic, but contradictory.
The spatial structure of Japanese manufacturing industry reflects the industrial systems and policies. Since the first oil crisis, several industries, especially labor-intensive or basic materials ones, were depressed by industrial crisis, and the reorganization of production and corporate structures had been executed, sometimes, guided by the industrial adjustment policy. At the same time, regional policies for depressed areas were planned for the unemployed, the affected subcontractors, and local government. But, it has been very difficult to change the rationalization plans of large corporations, and to regenerate local economies. The multi-locational firms decided to cut over-capacity and concentrate on more efficient plants, although they introduced new products lines for utilizing redundant labor and facilities in some cases.
Japanese multinational corporations have accelerated their foreign direct investment, facing revaluation of the yen and trade conflicts, and they have concentrated on the international networks of production and market functions. Domestic manufacturing production is polarized between the bases of international operations such as R&D and high value-added products, and the contracting of employment and plants for standard products. Local industrial policy is necessary for the regeneration of industries, keeping flexibility adaptable to global dynamism and the sustainability of communities.
