Abstract
In this paper, the author conducted a comparative analysis of cross-industry exchange activities and industrial clustering projects to examine the effectiveness of both exchange activities among companies and policies conducted by the government.
First, it has become clear that positive participation by every individual company is necessary for success in business cooperation. Experiences of the cross-industry exchange activities tell us that tightening the relationships among members is the first step, and expanding the activity field outside the group to collect necessary information is the next step. Industrial clustering projects are led by the regional Bureaus of the Ministry of Economy, Trade and Industry, which connotes the risk that each participant becomes passive. In order to clear the risk, growing of the local groups and existence of a leader from the private sector are inevitable. In addition, positive participation is supported by small group activities. We found that new small group cooperation is growing in the Tokai clustering project. The government sector can prepare meeting points to promote business matching. In this context, one cross-industry exchange group in Kita-Kyushu City made it clear that strong leadership in the private sector, together with the support of the local government as a secretariat, are the conditions for success.
Another important point to be discussed is evaluation of concrete policy measures to subsidize new business projects by small and medium-sized enterprises (SMEs). In particular, prudent consideration is necessary when focusing on the industrial cluster formulation. We found, through the experiences of both cross-industry exchange activities and industrial clustering projects, that such subsidies stimulate the SMEs to try new business projects, even though most subsidized projects do not bear fruit. Compiling the experiences of the new project attempts leads to business cooperation. Although it may be difficult to screen the subsidized projects and to evaluate the policies, as indirect effects should be considered, measures to support SMEs' new business projects should be prepared.
JEL Classification: L53, L60
