Evolution of Cluster Policy in Japan

This article offers a narrative analysis of Japan’s strategy for fostering economic growth through the establishment and advancement of clusters, defined as geographically concentrated groups of companies and organizations operating within related industries. While cluster policy was actively pursued in Japan from 2000 to 2010, its implementation was subsequently discontinued. However, this cessation did not signify a failure of the policy or a rejection of supporting clusters through alternative means. Furthermore, the implementation of cluster measures yielded valuable insights applicable to numerous transition and developing countries. Following the introduction, the article provides an overview of key concepts from economic-geographical theory, which characterize clusters as pivotal tools for innovative development. The subsequent segment delves into the characteristics of traditional industrial concentration zones in Japan, which share similarities with analogous formations in England and Italy outlined in early cluster studies. The third part scrutinizes existing clusters and cluster policy in Japan, including the selection of target industries and support measures. It identifies the factors contributing to the success of Japanese cluster policy as well as the limitations it faced during the global financial crisis of 2007–2008, the installation of the opposition Democratic government in 2009–2012, and the 2011 disaster alongside subsequent budget constraints. The fourth section elucidates the contemporary approach to fostering the innovation process within a regional context, known as the “platform model,” and underscores the rationale for modifying the cluster approach. Consequently, the article underscores that many facets of Japan’s cluster policy hold relevance for countries and regions aspiring to utilize the cluster method as a means of promoting innovative economic growth. Specifically, Japan’s experience in stimulating territorial concentration, fostering vertical cooperation among agro-industrial enterprises, establishing cluster management organizations, and transitioning from a narrow cluster to a broader “platform” policy for cultivating regional innovation ecosystems may offer valuable insights for post-Soviet states.