Significance and Issues in the Study of Indigenous Industry

Abstract

A large number of studies and researches on“Indigenous Industry”have already been done in Japan, using different approaches to various subject issues. At this point in time when almost two decades have past since the end of the postwar rapid economic growth period, it has become possible for us to objectively evaluate the content of structural change which took place in an indigenous industry during that period.This paper aims at the review of academic achievements made so far in this area of concern so as to identify still remaining issues and problems and to suggest an alternative framework of study to respond to the above-identified issues and problems.“Indigenous Industry”was generally seen as synonymous with traditional industry. In the 1970's, however, the concept of an indigenous industry was newly introduced to understand the changes in its structures during the postwar rapid economic growth period and the accompanying issues and problems in the period of low economic growth after the 60's. With the emergence of“Regionalism”, the study of indigenous industry gained further momentum when its dynamic role was emphasized as a main factor in regional economic development or growth.In the studies of position and its change in indigenous industry, the main focus was given to the aspects of environmental changes and their resultant effects on structural changes of indigenous industries, particularly in the post high-growth period. The three dimensions of analysis adopted in these studies were the demand-and-supply structures of the products of indigenous industries concerned, and the international relationships in the said context. These studies, however, seem unsuccessful in that the conclusions given still remain in the range of hypothesis mainly because of the correlation among the said three dimensions being left obscure.In the studies of the development base of indigenous industry, it was attested that among the most salient factors in the development base are production and marketing structures based on social division. Those structures, however, are very much diversified. Hence, they must be categorized in accordance with such criteria as location, history, and industrial system so as to give account to positions and characteristics of respective industries within this framework. In my view, categorization based on the pattern of development process of indigenous industries would bear more meaningful significance, for it would help us better recognize the direction of industrial development. The studies conducted in this suggested line have been very few so far.One of the most fundamental and challenging works for us, is to specifically clarify the interrelationship and/or relevance between indigenous industries and local characteristics of the industry's area. The“Regional Approach”has arisen, along with the growth of interest in dynamic role of indigenous industries in regional economy and society, and the studies in this line have been more actively pursued. The issues focused on in this approach, however, have differed from one another according to academic stance. For example, Geographers utilized this approach mainly for the study of industrial communities, while, Regionalists more positively estimated and emphasized the important role of indigenous industries in regional development.Studies on the problems, visions, and promotion policies of Indigenous Industries have so far been done more in the field of Economics rather than in Geography. Most of those studies commonly regarded as problems the issues of changes in environmental factors in which indigenous industries operated, responses to those changes from the industries, and resultant contradictions in the interaction process. Hence, those issues must further be examined based on the unique, specific characteristics of indigenous industries.