This paper argues industrial policy as part of the policy aiming at “sustainable city”. This paper considers characteristics of cities today as open complex consist of various factors. The economy and society of cities and regions are basically open system. While they are placed in competition from outside of the region economically, free population movement and information flow, cities can be considered as social entity with certain unity, based on geographical location and topographical conditions, in which components such as structure of citizens, local communities formed historically, and industries locate are influenced each other and supplemented by the policies of governments central and local. The purpose and theoretical contribution of this paper lies to propose the viewpoint that connects on one hand the overall picture of the regional economy and society as an open and dynamic complex, and on the other hand arguments relate to regional industrial policy with sustainable city as overarching target. It will be necessary, to confirm the validity of such viewpoint, to accumulate concrete examples. This paper examines, as a step in such endeavor, the cases of three regions in Sweden. Section 2 argues the role of regional system, in which regional industry, communities, and industrial support projects are integrated, through the case of the area where small and medium-sized enterprises (SMEs) have accumulated. Section 3 argues the policy that are mutually complementary to conservation of forests as environmental resources and maintenance of local community, through the case of peripheral area rich in forest resources. Section 4 argues industrial policy of the region put under the direct influence of global company through the case of region with automotive industry.
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