EFFECTS OF REGIONAL COOPERATION AMONG SMALL AND MEDIUM†SIZED FIRMS ON THEIR GROWTH IN JAPANESE INDUSTRIAL CLUSTERS

Tomokazu Arita, Masahisa Fujita and Yoshihiro Kameyama

Review of Urban & Regional Development Studies, 2006, vol. 18, issue 3, 209-228

Abstract: We examine the effects of regional inter†firm cooperation on firm growth by estimating the firm growth function, using the data of a questionnaire survey for three major industrial clusters in Japan, namely, Tama, Kinki and Hokkaido. We focus on the specific content of cooperative activities for two aspects: that is, three production stages of R&D, commercialization, and marketing for cooperation and different types of alliance partners. The findings for our study areas demonstrate: i) vertical cooperation, the most prevalent with suppliers and customers, does not contribute to firm growth; ii) the clusters do not enjoy “urbanization economies arising from agglomerating a variety of different industrial sectors†; iii) the alliances with “universities†and “cross†industry exchange organizations†show positive effects on firm growth; and iv) both contributions and limitations are identified for the cluster†promotion policies in Japan.

Date: 2006
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