A Review of Geographical Studies on Manufacturing Industries in Japan

Abstract

This paper aims to review geographical studies on manufacturing industries in Japan over the past two decades, with particular focus on industrial agglomeration, the geography of large manufacturing firms, and indus- trial regions. Academic discussions on industrial agglomerations in Japan have shared some common subjects with those in North America and Europe, but took a different direction from the latter in the Japanese economic context. Empirical studies on industrial agglomeration have been tackled from diverse viewpoints. It is not easy to sum up their main view. In order to prevent the discussion from scattering, empirical studies have to be particularly sensitive to the geographic scale and its spatial characteristics. It is also important that the many theoretical works, conducted more than in other countries, provide the common base of discussion in empirical studies. Since the 1990s, global- ization has brought about a rise in foreign direct investment in Asia through Japanese multi-national enterprises (MNEs), and at the same time, "hollowing out" of industries appeared on the Japanese manufacturing landscape. However, studies on shifting spatial systems within Japanese manufacturing remain insufficient in their attempt to understand the real character of spatial systems in terms of the international division of labor in East and South Asia. It is necessary to take up the following three issues both theoretically and empirically: first, the production systems of the Japanese MNEs in East and South Asian countries; second, inter-regional and international division of labor in East and South Asia; and third, the repercussions of locating abroad and offshoring manufacturing on industrial regions within the home country. Relocation abroad and offshoring of manufacturing have brought about an unequal development among industrial regions. Empirical work on the economic and social effects through the increasing reorganization of industrial regions has emerged as important. In addition to these issues, seeking an alternative sys- tem of local manufacturing for survival, creating high-value-added jobs and innovative activities, poses the emerging challenge in the study of this sphere.