Akihabara
REGIONAL REVITALIZATION IN AKIHABARA
Kazuhito YAMADA
Doctorate Course, Hosei Graduate School of Regional Policy Design
ABSTRACT: This paper is a policy thesis aimed at the revitalization of Akihabara (Tokyo, Japan), an area that has declined economically in recent years. Akihabara is known around the world for its concentration of electro-domestic retailing, but the reality is that there are a number of industries concentrated there. An important issue addressed in this paper is the mechanism of the industrial district. Accordingly, this paper shall examine how Akihabara’s Industrial district has evolved, through a historical analysis and observation of case examples over the past 60+ years of continuous industrial concentration in Akihabara following the end of WWII. The results show that there is an apparent external economy functioning in Akihabara and this external economy has contributed to the evolution of the Akihabara industrial district. Moreover, 4 distinct phases were observed with regard to the developmental mechanism of the Akihabara industrial district (an evolutionary process). These phases are: 1. Cost saving; 2. Increase in revenues; 3. Increase in added values;
4. Diminishing returns due to a negative lock-in effect (an industry starts to decline, companies make strategic changes but large switching costs prevent real change). Furthermore, in Akihabara current overall demand is decreasing due to industries in Akihabara entering phase 4. Corporations doing business in
Akihabara (in particular small- and mid-sized businesses) require a way to break the negative lock-in effect.
If businesses cannot remedy this situation, prospects for new industries and the revitalization of Akihabara are pessimistic. Policies are required to develop a regional business ecosystem(milieu) that allows simple businesses to flourish in the Akihabara region, with the occasional injection of fresh DNA (information, etc.) from inside and outside the
Kazuhito YAMADA
Doctorate Course, Hosei Graduate School of Regional Policy Design
ABSTRACT: This paper is a policy thesis aimed at the revitalization of Akihabara (Tokyo, Japan), an area that has declined economically in recent years. Akihabara is known around the world for its concentration of electro-domestic retailing, but the reality is that there are a number of industries concentrated there. An important issue addressed in this paper is the mechanism of the industrial district. Accordingly, this paper shall examine how Akihabara’s Industrial district has evolved, through a historical analysis and observation of case examples over the past 60+ years of continuous industrial concentration in Akihabara following the end of WWII. The results show that there is an apparent external economy functioning in Akihabara and this external economy has contributed to the evolution of the Akihabara industrial district. Moreover, 4 distinct phases were observed with regard to the developmental mechanism of the Akihabara industrial district (an evolutionary process). These phases are: 1. Cost saving; 2. Increase in revenues; 3. Increase in added values;
4. Diminishing returns due to a negative lock-in effect (an industry starts to decline, companies make strategic changes but large switching costs prevent real change). Furthermore, in Akihabara current overall demand is decreasing due to industries in Akihabara entering phase 4. Corporations doing business in
Akihabara (in particular small- and mid-sized businesses) require a way to break the negative lock-in effect.
If businesses cannot remedy this situation, prospects for new industries and the revitalization of Akihabara are pessimistic. Policies are required to develop a regional business ecosystem(milieu) that allows simple businesses to flourish in the Akihabara region, with the occasional injection of fresh DNA (information, etc.) from inside and outside the
References: (1) Marco Iansiti and Roy Levien (2004) The Keystone Advantage: What the New Dynamics terms of theory this field is still quite inadequate Kikkawa (1998) (Kanai, 1995). This examination of one region Essential Qualities of Industrial districts – Flexible examination resulted in concepts of business (3) Yoshiyuki Okamoto (2009) (4) Yuri Kato (Ono) (2005) (14) Nikkei Sangyo Shimbun