The production of ethanol has been increasing for these 10 years in the United States because the federal government implements the agricultural policy promoting high value-added agricultural products and the domestic consumption of ethanol is expanding due to its cleanness to the environment. For the US which is the strongest agricultural exporter in the world, it is an urgent need to create new high value-added agricultural products in order to establish employments in the rural area and compete against new agricultural exporting countries like Brazil and Argentine in the international grain market, like corn because the US has been losing its market share in the corn bulk market. For that purpose, ethanol can be a very good example. The ethanol production is concentrating on the so-called Corn-belt area like Iowa and Minnesota. In the State of Minnesota, groups of farmers are strongly involved in the production of ethanol and many of them are called “New Generation Cooperative that has a closed-membership system and pursues high value-added agricultural products. In the State of Minnesota, ethanol manufacturers, which are most1y New Generation Cooperatives, have created about 4,000 employments for these 10years because of uniqueness of the cooperative and the support by the state governments. Therefore, the rural development based on the ethanol production by New Generation Cooperative is a key to success for revitalization of the rural economy and international competitiveness in the international corn market.

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The purpose of this paper is to evaluate the development process of regional industries as an open to the demand, with the use of skill, technology of localized industries and Organizer firm concept. The specific area investigated is the Hekinan city, Aichi prefecture, which has transformed from the city of localized-industry to that of the automobile industry and the drive forces that have turned the regional industries into automobile industry. In this paper, by examining the development of Hekinan as a case, the researcher discusses the origins of the skill and the technology owned by the automobile industry and the drive forces that have turned the regional industries into automobile industry. Findings of this study point to the close association between the localized industry and automobile industry in the Hekinan city. First, the skills and the technologies that the area needed to become the city of automobile industry originated in the skills and the technologies accumulated and refined while the localized industry was being developed. Second, the driving force that have contributed to turning the area into the city of automobile industry was originally brought by the changes in the demand while the automobile industry was being developed, and the Organizer firm which has corresponded to the shift of these changes.

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Main theme of this paper is to explore the structure and mechanism of cooperative local self- governing system to sustain mountainous village facing with possibility of disappearance. To do this be examined the case of Achi village, its process to form system promoting development and the enterprise now ongoing by Achi village to enhance local activity. At last these will be summarized from the point of making sustainable village.

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