Study on Regional Innovation
Study on Regional Innovation
-The future of regional communities in an aging society-
Report Summary
1.The purpose and the main themes
This study has been conducted since 2007 with the aim of understanding the variety of efforts being made in regional communities both in Japan and other countries and to propose policies to revitalize regional communities in our aging society. One of the challenges facing regional revitalization lies in the areas of industry and employment. In this year’s report, we focus on regional innovations in cases related to the promotion of regional industries in Europe, compare them with regional innovations implemented during the same periods in Japan,we presented our proposals for regional improvement in Japan.
In 2008, businesses involved in subprime loans, which have become a serious issue, went bankrupt, leading to the collapse of financial markets and affecting the current economy. Although financial institutions on Wall Street and in the cities, the heartlands of financial capitalism, will effectively be managed under government control, Japanese businesses that have relied on foreign markets have also suffered losses, resulting in a strong sense of stagnation among subcontracted small to medium-sized businesses that have relied on these large corporations. Considering the problematic “lost decade” after the burst of the bubble economy in Japan, nobody believes this situation will be resolved in a short period of time. Moreover, there is likely nobody who believes industrial societies will ever be the same again. The future of the world, including all of its countries and communities, is unknown.
Innovation is derived from the Latin word “innovation”, which means the creation of something new. It means the production of something new and improved, the introduction of new production processes, the development of new markets and new supply destinations, the reconstruction of corporations, and such. In addition, different types of innovation can be categorized by their respective characteristics, such as normal innovations (improvements of productivity and quality, excellence in staff training), niche innovations (affiliation and cooperation with new corporations for new markets), structural innovations (entering new fields with new technologies and methods), and revolutionary innovations (entering existing markets with new technologies and methods). Although innovation is an essential theme for all countries, regions, and corporations in any age, regional engagement for innovation is especially needed in situations such as the present.
Innovation involves more than just research and development and technical developments; it should correspond to prospective markets of the near future that are demanded by society. Moreover, it is necessary to promote such innovations strategically through public procurements and financial support. In the EU, there are 6 fields of socially and economically valuable markets.
1. E-health: establishing health information systems to provide better care at lower costs.
2. Sustainable construction: the construction sector constitutes a high share of GDP, final energy consumption, and greenhouse gas emissions.
3. Protective textiles: for example, clothes that protect people from accidents and other dangers.
4. Biological products: for example, bioplastic and lubricants.
5. Recycling: reducing the amount of waste products and the consumption of natural resources and improving energy efficiency.
6. Renewable energy: the European Parliament aims to provide 20% of energy consumption with renewable energy by 2020.
The 2007 Communication on a "Lead Market Initiative for Europe" has many implication for future innovations in Japan. One of the common themes for promoting employment and industry in each country after the financial crisis has been government investments in the field of renewable energy, and various measures including public procurement, laws, and incentives will be implemented. At the same time, energy-saving houses and construction are necessary for global warming policies. The utilization of renewable energy as well as the development of energy-saving houses and construction constitute optimal solutions for regions with varying natural landscapes and climates. For this reason, these two solutions have become the main themes of regional innovation. Regarding tourism, which has been a means of vitalization common across communities in Japan, the promotion of health tourism in accordance with social purposes such as health and prevention may provide possible markets for Japan’s aging society and for China, where the population will soon begin aging rapidly.
In this study, we will review efforts to promote renewable energy in regional communities and new fields in the service industry, such as health tourism, while considering the creation of regional industries and the sustainable local economy.

