Abstract
This study aims at examining the relation between accumulation of knowledge based service industries (KBSIs) and the location factors among 47 prefectures in Japan. The paper clarifies that the concentration of KBSIs is very obvious in the advantageous regions in terms of GRP, high GRP per capita and rich local culture so that KBSIs often concentrate in the core of major metropolitan regions. However, the adjacency to Tokyo and Osaka causes straw-effect, resulting in low concentration of KBSIs in the surrounding areas. Although manufacturing sector enhances some types of KBSIs, it is likely that their accumulation is not so large due to less developing of outsourcing from the manufacturing sector.