This article describes recent situation of industrial cluster and attempts to explore new development of industry in Hiroshima region.
In Hiroshima prefecture, there exist different types of industrial cluster, such as an auto-related cluster, a steel-related cluster, as well as some traditional handcraft clusters. Decrease of employment and establishments has been observed in labor intensive industries, such as furniture, lumber, and textile clusters before 1990. In the 1990s, it has been expanding over assembly industries.
To stimulate entrepreneurial firms and individuals, local industries and the government have to jointly 1) create distinctive value chains, 2) strengthen marketing capabilities, 3) enhance horizontal division of labor, 4) create distributed network, and 5) improve infrastructure in the region.