Abstract

This paper introduces a case in Japan on regional industrial development by a cluster concept which is a typical application of “Ba” theory, one of the mainstay principles of P2M Guidebook of Japan. The regional economy in Japan, excepting that of the three major industrial regions, occupies 46% of the Japanese GDP and is characterized by industrial innovation based on both, locality specific technology and synergy originating from the combined strength of upstream - downstream integration of regional industrial firms, mostly small to medium enterprises, which is called an industrial cluster, named after a cluster of grape.. An industrial cluster is a form of application of the “Ba” theory, a network synergy theory born in Japan, which is a platform of shared context in motion for collaborative knowledge and value creation.

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