EG2008 Yamamoto Egc
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Y2008 Economic Gardening Gathering in Steamboat: Yamamoto Introducing EG to Japan

Y2008 Economic Gardening Gathering in Steamboat: Yamamoto Introducing EG to Japan

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  • 1. Endogenous Development Models and Economic Gardening: A Case of an Entrepreneurial Farming Village in Japan Takashi Yamamoto Center for Entrepreneurship and Leadership Studies for Regional Economies (CELS) Akita International University Y = F (K, L, E )
  • 2. Outline
    • Comparing Endogenous Development theories
    • Case: Ogata Village, Japan
      • History
      • Statistics
    • Analysis
  • 3. Endogenous Development Theories - West and East
    • “ Inside-out” instead of “Outside-in”
      • Emphasizing local initiatives
      • Local resources supplemented by outside resources and buyers
    • Exercising Schumpeterian entrepreneurship
    • West
      • Economic growth as a primary goal
      • Capital accumulation strategy
    • East
      • Sustainability of local economy as a goal
      • Motivated “key persons” as change agents
  • 4. Key Persons
    • Appeared in Japanese endogenous development literature
    • Attractive local leaders as change agents
      • Knowing both inside and outside of the region
      • Keeping and developing network with outside
      • Change agents seeing the region comparatively and objectively
    • Key persons in Akita
      • “ Outside-in”, who migrated into Akita
        • Mr. Wakui in Ogata Village
      • “ U-turn”, who came back to Akita
        • Mr. Ebinne and others in Neiger Project
  • 5.  
  • 6. Endogenous Development in Japan
  • 7. Ogata Village, Akita:
  • 8. Unique History of Development
    • Created by a national project of land reclamation in 1957 to increase rice production
    • Initial 580 settler families from all of Japan
    • Basic infrastructure such as irrigation and roads completed at the earliest stage
    • National policy changed in 1970 to reduce rice production
    • Entrepreneurial farmers struggled to continue producing rice and to develop new marketing channels since 1980s
  • 9. Japan is the Least Entrepreneurial Country
  • 10. Akita is the Least Entrepreneurial Prefecture
    • Economic indicators
    • Prefectural income per capita (2001): 41th out of 48 prefectures
    • Prefectural saving per capital (2002): 44th out of 48 prefectures
    • Comparative Survey on Entrepreneurship among 48 Prefectures (2000)
    • Number of researchers at public research institutes (per 1000 firms): 5th from the top
    • Number of public business incubator rooms (per 1000 firms): 8th from the top
    • Number of industry-academy-public cooperation center (per 1000 firms): 2nd from the bottom
    • Number of venture firms (per 1000 firms): 13th from the bottom
    • Number of firms listed in major stock markets (per 1000 firms): 16th from the bottom
    • Number of public seminars for entrepreneurship (per 1000 firm): 12th from the bottom
    • “ Why have to changes while I am doing well enough?”
    • “ I won’t do it. Therefore, you shouldn’t do it, either”
    • “ I want to look good, so I do not want to fail.”
  • 11. Where SME are significant,
    • “ Mice ” with 9 employees or less
      • 81% of establishments, 29% of employment
    • “ Rabbits ” 10-19 employees
      • 10% of establishments, 17% of employment
    • “ Deer ” 20-99 employees
      • 8% of establishments, 35% of employment
    • “ Bears ” 100 employees or more
      • 1% of establishments, 19% of employment
  • 12. But this Entrepreneurial Village is Successful.
    • Municipality income per capita (2003): US$34,243.
      • 68.2 percentage points larger than the prefectural average.
      • Largest among municipalities in Akita since 1990, except during "IT bubble" years in 1999 and 2000.
    • Highly specialized in rice production
      • sector centrality value of agriculture is 0.7598
    Rhi = Annual production output of each municipality RH = Annual production output of Akita Prefecture Poi = Population of each municipality PO = Population of Akita Prefecture
  • 13. Entrepreneurial Farmer
    • Toru Wakui
      • Disobeyed government policy of reducing rice production, and sold rice through direct marketing to consumers
      • Established a rice marketing company with other farmers.
        • Currently hiring 160 employees
  • 14. Akita Komachi Corp. http://www.akitakomachi.co.jp/
  • 15. History of Ogata Village compatible with…
    • Endogenous development philosophy
      • Entrepreneurial farmer as key persons
      • Use of local resources
    • “ Rural” Economic Gardening
      • Use of information for direct marketing channels to sell rice products to consumers
      • Collaboration among farmers, researchers, and agriculture cooperatives
      • Combination of tourism and agriculture
  • 16. Another Entrepreneurial “Key Person”
    • Tamotsu Ebina
      • Former wrestler, now “Neiger the Hero”, who could save Akita
      • All handmade
      • Performing 200 shows in a year, only in Akita
      • Producing contents of local heroes for other prefectures
    Photo downloaded from http://akita.keizai.biz/headline/photo/126/
  • 17. The Neiger Project
    • Started in 2005 to vitalize local community
      • No support from government or business
    • Established a firm Seigi no Mikata ( Allies of Justice ) for promotion
      • Several employees and professional artists
      • Character goods from snacks to cell straps
    • Media coverage
      • Short programs on local TV
      • Comics sold nation-wide and in Taiwan ! No English yet
    • Same stage charges since initiation
    • Received an award in 2006 for encouragement to local people
    http://homepage1.nifty.com/nexus/neiger/
  • 18. Neiger show in Odate, Akita Photo downloaded from http://northline.blog82.fc2.com/blog-entry-108.html
  • 19. Conclusion
    • “ Endogenous development philosophy + EG policy framework” applicable in Japan
    • Key factors of local economic revitalization:
    • Good environment & Key persons
    • Focused on promising entrepreneurs:
      • Owners portray a genuine interest in being helped.
      • Growing firms.
      • Management values innovation and new ideas.
      • Local business, rather than a corporate subsidiary.
      • Cluster of companies. (Rossouw & van der Walt, 2003)
    • Cooperation among business (farmers), academics, and government
    • Y = F (K, L, E )
  • 20. P.S.
    • Economic Gardening getting known in Japan
      • 「エコノミック・ガーデニング」 No hits in 2007; about 100 hits today by Googling
      • Introduced by some blogs and newsletters
      • Dr. Iuchi of CRIEPI as research partner
    • What an economist can do?
      • EG Case studies and check-rides in Japan
      • Prove effectiveness of “EG + ED + Entre” set
      • Next destination: Korea or Taiwan?
  • 21. What is Community ?
            • 空 Space   Space
            • 風 Wind   Wisdom
            • 火 Fire   Production
            • 水 Water Amenity
            • 地 Earth Connection
  • 22. People and Location
      • 空    Space     environment, atmosphere
      • 風    Wisdom    intellectuals, talented
      • 火    Production entrepreneurs, farmers
      • 水    Amenity    nature, festivals, services
      • 地    Connection   tradition, governance