This paper examines Nousaku, a regional small and medium-sized enterprise based in Takaoka City, Toyama Prefecture, Japan, and conceptualizes the leadership practices of Katsuji Nousaku, its current chairman, who led the company’s transformation, as “creative leadership.” It aims to clarify how these practices were formed and developed, and how they generated a virtuous cycle of originality and co-creation. Innovation in traditional industries should be understood not merely as new product development or market expansion, but as a practice through which an entrepreneur reinterprets the meaning of technology, materials, and work itself, including tin casting, beyond established assumptions and connects them to new value creation. Based on a qualitative case study drawing on interviews, site visits, lecture materials, published writings, and public documents, the analysis shows that Nousaku’s practices developed from a strong sense of problem awareness formed within a subcontracting structure. From this starting point, they progressed through a transformation in the meaning of tradition, the exploration of originality through in-house product development, the reinterpretation of tin casting, and the challenge of 100 percent tin, before extending into empathy formation and co-creation in domestic and international contexts, as well as into industrial tourism and broader regional spillover. A distinctive finding is that originality fostered empathy, that empathy provided the basis for co-creation with others, and that learning generated through co-creative relationships stimulated new originality. Moreover, this cycle was supported by customer touchpoints and experiential platforms, including directly managed stores, overseas bases, the new company headquarters, and industrial tourism. This paper offers a perspective that reinterprets innovation in traditional industries as a chain of meaning redefinition, original value creation, and learning through co-creation, and provides theoretical and practical implications for research on regional SMEs.
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