Analyzing Inter-Firm Networks for Enhancing Large-scale Regional Clusters

Dense networks among organizations are expected to work as a conduit of resources and knowledge within regional clusters. In this paper, we analyzed structures of large-scale inter-firm networks in the Kanto and Koshinetsu areas which include ten prefectures around Tokyo and are the largest economic blocks in Japan. We found a marked difference among prefectures in terms of the network structures, which can not be detected only by geographical factors and regional industries. The results give some important suggestions for the enhancement of large-scale regional clusters. The network structure showed that some prefectures are intensively developing their internal network connections while most of the prefectures are strongly connected to a center. The prefectures that are less connected to the center have a room to improve networking for the regional clusters. In addition, even among such prefectures, there is a clear difference in terms of their network positions. One prefecture has high network centralities and is maintaining certain amount of connections to other prefectures, which eventually contributes to economic revitalization in the whole areas. Another has less such external connections, which could raise a chance to accelerate the regional clusters by bridging such gap.