Abstract
Diversity of birthplace of workers is pointed has been regarded as important factors for performances of firms. On the other hand, from the viewpoint of promotion of rural areas, introduction of information from advanced areas including tacit knowledge is effective. In this paper, focusing on intranational variety of hometowns, we analyzed representatives' birthplaces of small and medium sized firms in Japan. We detected the both effects on the performance of the firms. As a result, it has been revealed that the former process especially influence the general growth of firms indicated with the increasing ration of the number of workers for example and the latter has strong relationship with making innovations. In addition, both contribute to variety of industrial categories through enhancement of highly skilled categories. These results imply the significance of increasing gross population movement in industrial promotion.