Abstract
This paper investigates the evolution patterns of eight territorial systems in Japan during the period of industry relocation. Multiple case study methodology was applied. Data were collected through interviews with entrepreneurs and local government officials. Based on the findings that reveal adaptation processes in which manufacturing firms are involved, we propose a three-stage evolutionary model to conceptualize the changes that are taking place in Japan's territorial systems. We argue that the transactional relationships are evolving towards more socialized relationships and that these relationships are evolving towards more formalized, knowledge-based innovation networks.
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