| The purpose of this study is to investigate the temporal changes in the structure of industrial clusters in the Japanese economy between 1960 and 1970.;A commonly accepted economic goal of regional development policies is the attainment of a sustained increase in per capita real income. Among numerous criteria considered, the encouragement of regional industrial development is a frequently offered solution. An important question arises with respect to the selection of a proper mix of industries capable of generating significant multiplier effects as well as positive external economies. Multipliers generated in a regional economy by the introduction of new activities are intimately related to existing leakages or to the extent that the regional economy is closed in terms of size and character of interregional flows. Hence, the introduction of a cluster of related industries rather than a scatter of hetrogeneous activities is considered to be preferable in order to foster economic growth of a small and open region.;A number of empirical studies trying to identify the sectoral composition of industrial clusters have been carried out recently, but there has been a notable absence of empirical studies dealing with temporal behavior of industrial clusters. The temporal stability of industrial clusters existing in a rapidly growing economy is of great significance, both theoretically and in the context of growth-promoting regional policies.;In this study, an industrial cluster is defined as a subset of industries connected by flows of goods and services stronger than those linking them to other sectors of the economy. The analysis is carries out in a comparative static framework by applying the model to two input-output tables, one for 1960 and the other for 1970. The level of sectoral disaggregation is intermediate, between a 3- and 4-digit level SIC classification, since 142 industries were examined. The principal method employed for the identification of industrial clusters is the modified triangularization method proposed by Czamanski.;The approach revealed the following 16 basic industrial clusters in the Japanese economy: food and agricultural products, fisheries, construction, textiles, wood and wood products, paper and printing, leather products, communications and electronics, all of which form the group described as construction and light manufacturing clusters; chemical products, iron and steel, nonferrous metals, machinery, automotive, and coal and petroleum, which form the heavy manufacturing clusters; and services-1 and services-2, which represent the tertiary sectors.;A temporal comparison of each cluster is then made with respect to changes in (1) sectoral composition, (2) relative position in the economy, (3) structure of flows of goods and services among constituent industries, and (4) degree of interrelatedness and degree of independence.;The notions of central, nodal and marginal industries are introduced, and these types of industries are identified for each cluster. The growth performance of each industry in each cluster is related to changes in the pattern and relative strength of flows of goods and services. Schematic diagrams are presented for each cluster to facilitate the temporal analysis of identified clusters.;Some effects of the identified clusters upon changes in the temporal pattern of spatial distribution of industrial activities are derived, and suggestions for further research are presented. The overall conclusion is that clusters belonging to the heavy manufacturing group experienced some changes in sectoral composition between 1960 and 1970. The light manufacturing clusters revealed almost no changes, while the two service clusters showed the strongest variation. |
