2 - Regions and firms

Summary

Introduction

From the mid-1990s to the early 2000s I followed the experiences of forty-three high technology manufacturing firms located in three industrial clusters across regions in Japan: Ota Ward in Tokyo, Higashi (or “East”) Osaka, and the southern corridor of Kyoto. In this chapter I focus on firm-level case studies. Through the personal narratives of the entrepreneurs themselves, I identify a number of successful (and also failing) strategies of innovation and competitiveness. These entrepreneurial case studies are also illustrative of the regional variations in Japan's national innovation system. Before the case studies, I provide an overview of the nature of high technology industrial production in the regions of study.

First, I provide a snapshot of the industrial structure of each region. I review trends in products and markets in the 1990s and 2000s. Second, I review how (new product) innovation is measured in this study, and how firms rank relative to one another and generally in today's global high technology industry. The rationale for focusing on SMEs stems from the fact that the bulk of new product innovation, particularly in engineering and high technology industry is found in smaller firms – in Japan and the USA alike (Japan Small and Medium Size Enterprise Agency 2003).

Finally, I introduce the entrepreneurs and case study firms. I examine their struggles for independence, innovation, and competitiveness within the Japanese political economy.