Network Dynamics in the 12 Regional Clusters

         
Author Name SAKATA Ichiro  (Consulting Fellow, RIETI) /KAJIKAWA Yuya  (Institute of Engineering Innovation, Graduate School of Engineering, the University of Tokyo) /TAKEDA Yoshiyuki  (Institute of Engineering Innovation, Graduate School of Engineering, the University of Tokyo) /HASHIMOTO Masahiro  (Policy Planning and Coordination Department, NEDO) /SHIBATA Naoki (Institute of Engineering Innovation, Graduate School of Engineering, the University of Tokyo)/MATSUSHIMA Katsumori (Institute of Engineering Innovation, Graduate School of Engineering, the University of Tokyo)
Creation Date/NO. May 2007 07-J-023
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Abstract

It has been observed that the origination of innovation tends to concentrate in areas in which environmental conditions are formed as clusters. It is networks with "small-world" architecture that underpin the high level of creative power for innovation that clusters possess. If it were possible, through policy efforts, to form networks of a highly small-world character that provide an environment that can facilitate a good balance between short-distance interaction and long-distance interaction, that would lead to the enhancement of a region's creative power for innovation. The cluster policy currently being implemented has completed its first phase and has reached a watershed at which it moves into the second phase. In this paper we attempt to formulate a method of objectively grasping and evaluating network architecture from the standpoint of these two types of interaction.



Specifically, with regard to the architecture of major networks formed domestically, we use network analysis methods to conduct a comparative analysis of the 12 regions and fields before (in 2000) and after (in 2005) the implementation of cluster policy.



As a result of this, we have clarified the following points. (1) Networks are expanding in all regions, (2) the networks that excel in long-distance interaction also excel in short-distance interaction, (3) with a small number of exceptions, the bigger the network is, the more both of these characteristics are enhanced, (4) during this five-year period there have been no major changes with regard to the comparative advantage of each region or field, (5) there is some degree of correlation between the independence of modules and the extent of their small-world character, and (6) disparities between regions are greater than disparities between industry sectors.



Through the use of this analytical method it was possible to obtain a quantitative grasp of network architecture in a form that made possible comparisons with other regions and fields, and from this to extract objective information necessary for policy-making. We hope that efficient networking activity will be carried out in the future on the basis of the results of analysis of this kind.