Despite its postwar implementation of various policy measures targeting
regional industry, including the Technopolis Policy and the Intelligent
Location Policy, Japan has failed to realize sustainable growth driven by
innovation originating in its regional areas. The failure of conventional central
government-led regional industry policy to overcome the present deadlock
demands a transformation of its fundamental concepts.

This report proposes the formation of compact industrial agglomerations
which make advantageous use of the unique features of the regional areas
in which they are located. The development of high-density networks connecting
these industry centers to urban areas would allow flexible configurations, making
it possible to nurture industrial agglomerations possessing a high level of quality
and robustness despite their compactness.