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EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
EG2008 Yamamoto Egc
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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.
  • 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
  • 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
  • 18. Neiger show in Odate, Akita Photo downloaded from
  • 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