Technological Innovation, National Urban
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No. 110 TECHNOLOGICAL INNOVATION, NATIONAL URBAN POLICY AND LOCAL DEVELOPMENT: POLICY IMPLICATIONS OF THE CONCEPT OF TECHNOPOLE AND JAPAN’S TECHNOPOLIS PROGRAMME FOR DEVELOPING COUNTRIES Kousuke Araki August 2000 Working Paper No. 110 TECHNOLOGICAL INNOVATION, NATIONAL URBAN POLICY AND LOCAL DEVELOPMENT Policy Implications of the Concept of Technopole and Japan’s Technopolis Programme for Developing Countries Kousuke Araki July 2000 TECHNOLOGICAL INNOVATION, NATIONAL URBAN POLICY AND LOCAL DEVELOPMENT: POLICY IMPLICATIONS OF THE CONCEPT OF TECHNOPOLE AND JAPAN’S TECHNOPOLIS PROGRAMME FOR DEVELOPING COUNTRIES CONTENTS 1. INTRODUCTION. ................................................................................................................................ 1 1.1 INTRODUCTION..................................................................................................................................... 1 1.2 AIM AND OBJECTIVES. .......................................................................................................................... 2 1.3 METHODS AND DATA SOURCES. ........................................................................................................... 2 1.4 STRUCTURE OF THE PAPER. ................................................................................................................. 2 2. TECHNOPOLE CONCEPT AND NATIONAL DEVELOPMENT POLICY. ........................................ 3 2.1 THE TECHNOPOLE CONCEPT. ............................................................................................................... 3 2.2 TECHNOPOLE CONCEPT AND DEVELOPING COUNTRIES.......................................................................... 6 2.3 TECHNOPOLE AND NATIONAL ECONOMIC DEVELOPMENT POLICY............................................................ 8 2.4 TECHNOPOLE AND NATIONAL URBAN POLICY......................................................................................... 9 2.5 TECHNOPOLE AND LOCAL DEVELOPMENT PLANNING............................................................................ 11 2.6 KEY ISSUES. ...................................................................................................................................... 11 3. THE CASE OF JAPAN’S TECHNOPOLIS PROGRAMME. ............................................................ 12 3.1 HISTORICAL BACKGROUND. ................................................................................................................ 12 3.2 JAPAN’S PLANNING SYSTEM AND THE TECHNOPOLIS PROGRAMME. ...................................................... 13 3.3 BASIC CONCEPTS: THE INTEGRATION OF SPATIAL STRATEGY, INDUSTRIAL POLICY AND LOCAL URBAN DEVELOPMENT POLICY................................................................................................................... 15 3.4 EVOLUTION OF THE IMPLEMENTATION OF THE TECHNOPOLIS PROGRAMME............................................ 18 4. AN ASSESSMENT OF THE TECHNOPOLIS PROGRAMME......................................................... 22 4.1 GOAL ACHIEVEMENT. ......................................................................................................................... 22 4.2 SPATIAL DISPERSAL OF R&D FACILITIES. ............................................................................................ 26 4.3 CREATION OF LOCAL LINKAGE WITH RELOCATED R&D FACILITIES. ....................................................... 28 5. DISCUSSION OF THE RESULTS OF THE TECHNOPOLIS PROGRAMME. ................................ 28 5.1 THE VALIDITY OF THE METHODS ADOPTED IN THE TECHNOPOLIS PROGRAMME. .................................... 28 5.2 POLITICAL FACTORS: THE INTERRELATIONS BETWEEN INDUSTRIAL & TECHNOLOGY POLICY, REGIONAL DEVELOPMENT POLICY, AND LOCAL DEVELOPMENT PLANNING...................................................... 29 5.3 IMPLICATIONS FOR DEVELOPING COUNTRIES. ...................................................................................... 31 5.3.1 Basic concept of the technopole strategy. ............................................................................... 31 5.3.2 The role of the central government. ......................................................................................... 33 5.3.3 The role of local government.................................................................................................... 33 6. CONCLUSION. ................................................................................................................................. 34 7. APPENDIX INDUSTRIAL LOCATION POLICIES IN JAPAN......................................................... 36 8. BIBLIOGRAPHY (in ENGLISH). ...................................................................................................... 37 9. BIBLIOGRAPHY (in JAPANESE).................................................................................................... 39 LIST OF ILLUSTRATIONS FIGURES. FIGURE 2.1: FACTORS GOVERNING THE GENESIS AND DEVELOPMENT OF HIGH-TECH REGIONS. ...................... 4 FIGURE 3.1: PREFECTURES AND REGIONS IN JAPAN................................................................................... 14 FIGURE 3.2: SCHEMATIC SETTLEMENT PATTERN OF THE TECHNOPOLIS CITY. .............................................. 16 FIGURE 3.3: SUMMARY OF TECHNOPOLIS LAW. ......................................................................................... 17 FIGURE 3.4: REGION OF THE TECHNOPOLIS DEVELOPMENT PLAN. .............................................................. 19 FIGURE 5.1: TECHNOPOLE & TECHNOPOLIS: CONCEPT AND POLICIES. ........................................................ 31 FIGURE 5.2: ALTERNATIVE TECHNOPOLE CONCEPT.................................................................................... 32 TABLES. TABLE 2.1: ASSESSMENT OF THE THEORETICAL APPROACHES TO HIGH-TECH REGIONS. ................................. 5 TABLE 2.2: TYPOLOGY OF TECHNOPOLE. .................................................................................................... 5 TABLE 2.3: TECHNOPOLE BUILDING AND LEVELS OF DEVELOPMENT............................................................... 7 TABLE 3.1: KEY FEATURES OF SELECTED TECHNOPOLIS PROJECTS. ........................................................... 20 TABLE 4.1: GROWTH RATE OF TECHNOPOLIS AREA AND NATIONAL AVERAGE (1980-89). ............................. 23 TABLE 4.2: GROWTH RATE OF TECHNOPOLIS AREA AND NATIONAL AVERAGE (1980-85 & 1985-89). ........... 23 TABLE 4.3: TRENDS IN NEW FACTORY LOCATION IN TECHNOPOLISES (1981-93).......................................... 24 TABLE 4.4: TRENDS IN NEW HIGH-TECH FACTORY LOCATION IN TECHNOPOLISES (1981-93)......................... 24 TABLE 4.5: TRENDS IN TECHNOPOLIS EMPLOYMENT (1981-92). ................................................................. 25 TABLE 4.6: TRENDS IN TECHNOPOLIS INDUSTRIAL VALUE ADDED (1981-92)................................................ 25 TABLE 4.7: THE NUMBER OF NEW INDUSTRIAL FACTORY IN 20 TECHNOPOLISES (FIRST GROUP). .................. 27 TABLE 4.8: TRENDS IN NEW R&D ESTABLISHMENTS BY REGION.................................................................. 27 TABLE 4.9: PERCENTAGE OF THE NEW HIGH-TECH FACTORIES, BY REGION (%)............................................ 27 TECHNOLOGICAL INNOVATION, NATIONAL URBAN POLICY, AND LOCAL DEVELOPMENT: POLICY IMPLICATIONS OF THE CONCEPT OF TECHNOPOLE AND THE CASE OF JAPAN’S TECHNOPOLIS PROGRAMME FOR DEVELOPING COUNTRIES 1. INTRODUCTION This leads to the issue of national spatial strategy (or national urban/urbanisation policy) in 1.1 Introduction developing countries, which has been widely debated over the past few decades. One of the In recent years there has been considerable main conclusions drawn from this debate is that interest in technology-oriented regional direct state intervention to influence the spatial development policies in many industrialised pattern of development has not been successful, countries. The attempt to create the so called and the growth of large cities should not be ‘technopole’ (Castells and Hall, 1994) is one of restricted at high costs to the public purse but these policies. The proliferation of such an effort in rather their economic potential should be so many countries on the stimulation of high- maximised. Large cities are important contributors technology industry through technopole planning to national economic development and thus should appears to be based on the assumption that be effectively managed, but this does not mean technological innovation leads to economic growth, smaller cities can be neglected. Indeed, many and directing the location of high-technology researchers suggest that while local governments industry is relatively easy because of its ‘foot- should play an active role in the development of loose’ nature and therefore can be a key industry their own cities, the central government should for the development of hitherto underdeveloped also play a vital role to assist their efforts (Gilbert, backward regions (Malecki, 1991). Thus with the 1991; Watts, 1992). The questions now arise: hope of replicating the apparent success, What are the roles of central and local numerous attempts have been made to identify the governments? How should national economic factors governing the formation of classical development policy, national spatial policy and examples of innovative industrial complexes such local urban development planning interrelate so as as Silicon Valley in the US. However, there has to