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Research Activities

Research Projects

FY 2007/2008 Research Topic: 1-07
The Flowchart Approach to the Formation of Industrial Clusters: Focusing on the Mechanism of Endogenous R&D and Innovation


In recent years, not only academic researchers but also policymakers are paying more attention to industrial clusters and innovation systems as fundamental mechanisms for achieving sustainable development, poverty alleviation, and eliminating regional inequality. However, few theoretical frameworks have been put forward or empirical studies carried out with the aim of producing recommendations concerning practical development strategies for industrial cluster policy.

In 2006, the forerunner of this research project completed the task of constructing a flowchart model to serve as a prototype for industrial cluster policy in Asia, North America, and Latin America. The current research group seeks to clarify the conditions required for and the process of formation of innovation mechanisms. We also seek to generalize this flowchart model by conducting comparative research on diverse industrial agglomerations in Asia, North America, and Latin America.

The goal of this project is two-fold. First, we will develop and apply a simple flowchart model with R&D in each industrial cluster or establishment to estimate the conditions for the formation of new industrial clusters based on endogenous innovation using case studies. Second, we will analyze the following specific issues: (1) the effects of industrial development on competition in industrial agglomeration; and (2) the effects of the adoption of new technology on the emergence of product and process innovation in each industrial cluster or establishment. Thus we will show how to extend our approach to estimate the impacts of local public policy fostering industrial agglomeration on the product and process innovation in developing economies. This enables us to obtain comparable characteristics for each industrial cluster and show alternative policy recommendations.

Finally, we will explore ways to tighten the causal relationship between industrial agglomeration and the fostering of innovation systems using evidence-based policy-making motivated from economic theory and convincing facts-findings.


KUCHIKI Akifumi (Executive Vice President)

Members of the Research Project

KUCHIKI Akifumi (Executive Vice President)
UEKI Yasushi
YOSHIDA Kentaro (Visiting Researcher, Center for Strategic and International Studies)
TSUJI Masatsugu (Professor, University of Hyogo)
OKADA Aya (Professor, Nagoya University)
MIYAHARA Shoichi (Associate Professor, Aoyama Gakuin University)
ARITA Tomokazu (Associate Professor, University of Tsukuba)


In March 2007, we released a part of our research in a book as interim reports (JRP series, No. 141).
The final result will be published in the I.D.E. Development Perspective Series in 2008.