FOREST ECONOMY
Online ISSN : 2189-6801
Print ISSN : 0388-8614
ISSN-L : 0388-8614
A Study on Factors for Success/Failure of Local Innovation (Academic Article)
A Case Study of the Forestry Industry in Southern Hokkaido
Tomoyuki HONDA , Takumu DOI, Yasumasa KAWAKAMI
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2025 Volume 78 Issue 2 Pages 1-20

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Abstract
The creation of innovation is an urgent and pressing issue in mountainous regions in Japan, where the population is declining significantly. The authors conducted in-depth interviews with the innovators of the 17 forestry-related projects in the southern Hokkaido region. The results revealed that in the region, “new-value-creation” type innovation projects, which are compatible with “small forestry” operations, are being implemented. Notable examples include the integration of forestry experience into rehabilitation programs for socially withdrawn individuals (hikikomori) and the initiation of a horse logging business.  In addition, statistical analyses, including PLS regression and decision tree analysis, were conducted to determine the factors that contributed most to project success. These analyses, which used the degree of success of each project as the response variable and intrinsic and extrinsic factors as explanatory variables, suggested that the career background of the innovator was a particularly significant factor in driving the success of forestry innovation in the region.
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© 2025 FOREST ECONOMIC RESEARCH INSTITUTE
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