Abstract
In this study, we discuss the structure of the inter-firm, intra-agglomeration divisions of labor on the Toyota Automobile Group between West Mikawa region and North Kyushu, and Central Tohoku region.
In North Kyushu and Central Tohoku region, we established that new agglomeration develop as company towns influence the Toyota Automobile Group. These towns are increasing their production and are producing high level final products such as the Lexus brand. Simultaneously, these regions have attracted firms that produce heavy parts, but not firms that produce parts whose production requires high leveled technology. In addition, they luck high level capability in strategic decision making, purchasing, and other sophisticated business Technique. We realize that these regions have potential, but they face difficulties in their development because of their peripheral position on central agglomerations in Japan.
Conversely, we found that West Mikawa region, that is the base region of the Toyota Automobile Group, has lately experienced a decline in production. However, this region has maintained its high level functions concerning global strategic decision aking. We can anticipate that West Mikawa region could occupy a critical position in Toyota Automobile Group's central agglomeration in term of its overall global network.
