Factors causing decentration oriented relocation of firms

Abstract

As extreme concentration to Tokyo proceeds, relocations of firms to rural areas are needed. However, comparing to Tokyo, Japanese cities in rural areas are disadvantaged in some economic factors. There are 3 approaches to explain the reason why firms relocate to disadvantaged areas network of firms, location condition and city centers. In this paper, the author tried to verify influences of these factors through analyses of individual firms and regions. It can be realized by comparing rational destinations and real destination of relocations. As a result, some group of firms which relocated to disadvantaged areas are innovation oriented or high skilled personnel oriented. And regions which attract many firms tend to be good at three factors above. Especially, structure of networks of inter-firm deals of a region is important, and this corresponds to effects of policies which are carried out to make good use of existing firms.