Abstract

These days, some manufacturing enterprises which are forced to diversify management enter Agri- Business and plant factory business, make an Innovation utilizing high research and development ability and enough capital. As Agri-Business Innovation in Japan, this study examinedNK Agri, a subsidiary company of Noritsu Koki, which is a motion picture producer and machinery maker, based on Industrial Cluster Theory and Diamond Model by Michael E. Porter. The important points to enter Agri-Business of manufacturing enterprises were summed up as below. 1) New coming manufacture enterprises can form Industrial Cluster with farmhouse and foods makers, and enhance productivity and competitiveness. 2) New coming manufacture enterprises can enhance productive efficiency by collaborating with orthodox farmhouses as important partners. 3) Re- search institutions such as universities and local government should support for forming and development of Agri Industrial Cluster by manufacture enterprises. Agri Industrial Cluster by manufacture enterprises can improve local economy, so local government should prepare for the system to expand support as a policy.

Highlights

  • Globalization of economy and change of industrial structure force Japanese manufacturing enterprises to change business models and to diversify

  • Agri Industrial Cluster by manufacture enterprises can improve local economy, so local government should prepare for the system to expand support as a policy

  • This can be an innovation in Agri-Business, because new value is added. Such innovation may contribute to local industrial network and Industrial Cluster formation, which may contribute to improvement of regional economy too

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Summary

Introduction

Globalization of economy and change of industrial structure force Japanese manufacturing enterprises (makers) to change business models and to diversify Such makers enter agriculture which are different from their main business “Manufacturing”. When manufacturers as players of secondary industry enter agriculture, sometimes they develop and produce agricultural implements by utilizing manufacturing enterprise experiences, and sometimes, they start plant cultivation such as vegetables and garden plants and enter agriculture as primary industry. Taking a farm economic view of things, this can be new business “Agri-Business” which collaborates with different industries, engineering technology and orthodox agriculture. This can be an innovation in Agri-Business, because new value is added. The Japanese Manufacture is NK Agri, which is a subsidiary company of Noritsu Koki, which is a motion picture producer and machinery maker

Plant Factory and Business
Case Study
Conclusions

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