Investment Guide to Tohoku

Innovation and Business Success Stories: Industry-Academia-Government Collaboration Projects

Promoting Regional Development and Attracting Enterprises to the Tohoku Region

Relations with China, Cooperation Between Industry and Universities, and Personnel Development

Mitsuhiro Seki: Professor of Hitotsubashi University's Graduate School of Commerce and Management

Industrial History in Tohoku

The Tohoku region was once known as an under-industrialized area. It has now expanded its industrial infrastructure by positively inviting enterprises to the region, encouraging policies that promote local industry, and constructing the Shinkansen railroad and a superhighway network. Although local people are not fully satisfied with the present situation, seen from the outside, the region has achieved greater success than some other areas.
However, attracting enterprises is not as easy as before and new strategic policies need to be formulated. Now, relations with China, cooperation between industry and universities, and personnel development are important factors to promote development in the Tohoku region.

Mitsuhiro Seki: Born in Toyama Prefecture. After graduating in economics from Seikei University in 1971, Mr. Seki completed the doctor’s course at Seikei University’s Graduate School of Economics in 1976. After several years at the Tokyo Commerce and Industry Training Center, Mr. Seki became a full-time instructor at Tokyo University of Information Sciences in 1989, an assistant professor of the university in 1993, and then an assistant professor of commercial sciences at Senshu University in 1995. He became Professor for the School of Commerce and Management at Hitotsubashi University in 1998 and then Professor of the University’s Graduate School of Commerce and Management in 2000.

Relations with Asian Countries

The countries of Asia, especially China, are now making rapid progress. We sometimes feel that the power of Asia may overwhelm us. However, this "hot wind" has not yet reached the northeast of Japan. It seems to come in from the southern part of Japan and dies away in central Japan. At this historically important stage, Tohoku itself should jump into the wind stream. In this present age, Japanese industries and companies cannot form a realistic image of the coming age without a correct understanding of Asia, and China in particular.

The northeastern area of China is very promising for Tohoku because of the similarity in geographical features, climate, and landscape. Tohoku needs to pursue the possibilities of economic as well as cultural exchange. At the 16th Chinese Communist Party Central Committee in 2003, China also created a state project to develop the northeastern region and has positioned it as the most important project for the 21st century. We can expect active intercourse, mainly on industrial development and environmental issues. In addition, China is actively promoting inroads into overseas markets. Inroads into the Japanese market and the acquisition of Japanese enterprises by Chinese companies seem in no way out of the ordinary these days. To these ends, Tohoku needs to entice not only domestic companies but also Chinese and other Asian companies as well as Western companies. Furthermore, some Chinese universities have already started a business to promote inroads into overseas markets. Northeastern University in Shenyang, which has a close association with Tohoku University in Sendai, has established a software company at Odaiba in Tokyo. It is also necessary to actively make contact with this kind of university to uncover new opportunities.

Neusoft Institute of Information in Dalian
A professional school for computer software and the Japanese language established by Neusoft and managed by Northeastern University in Shenyang.

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Searching for New Possibilities for Cooperation Between Industry and Universities

Although the industrialization of science and technology developed at universities is one of today’s global currents, Japan lags behind most major countries. This is because Japanese universities have less incentive. With the trend towards a decreasing birthrate, universities should take new steps to overcome their financial difficulties. Now Iwate Prefecture is promoting one of the most interesting projects in Japan, the INS (Iwate Network System), for cooperation between industry and universities. This movement should be encouraged to expand throughout the whole Tohoku region.
The aforementioned Northeastern University in Shenyang is known to have carried out the most advanced projects in China. Through academic, personal, and business exchanges with such universities, the people of the Tohoku region should realize the importance of industrializing the universities, university-initiated venture businesses, and personnel development for the coming new age. Advanced projects based on global cooperation between industry and universities should be formulated, and these may act to stimulate universities and industries in the Tohoku region.

Ms. Kayoko Fujishige from Hanamaki City Business Support Center
Murphy Systems, a software company in Toyama Prefecture, has extended its business to Hanamaki City (Business Support Center) to make the most of the personnel resources and environmental merits of the city.

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The Most Important Theme: Personnel Development

In Japan, with its scarcity of natural resources, workers are the most valuable resource and personnel development is the most important theme in deciding the future of the Tohoku region. At this point, Tohoku seems to have an advantage. Tohoku once played an important role in supplying labor to Tokyo. However, as our society comes to have fewer children, resulting in families with one son or daughter, young workers are returning to Tohoku with its attractive living environment. Now, potential personnel resources are appearing in the regions. Personnel resources are needed to start a business. The most important conditions for locating a company will be in the existence of these resources.

Places where you can meet attractive people seem to produce an atmosphere of prosperity. In fact, quite a number companies have extended their businesses to Kitakami City and Hanamaki City in Iwate Prefecture. Local habitants have been stimulated to produce an environment and atmosphere that attracts people from outside the region. We should actively participate in projects that will nurture young people full of hope and courage and produce a cheerful atmosphere in the region. The INS is forming the basis for such a movement.
One female president, who moved her R&D office to Hanamaki from a city in the Hokuriku region, the central part of Japan’s main island, said, "I feel that something exciting will happen here." This is the atmosphere in which local people should actively participate in projects to attract people from outside the region.

Mr. Toshio Sato of the Hanamaki City Business Support Center, one of the key men in Tohoku, has proposed the following three catchphrases: "Be cheerful and keep smiling," "Always speak positively," and "Be the first to move." These phrases suggest positive strategies, not only in enticing companies and promoting industry but also as strategies for living. We encourage Tohoku to be full of hope and courage, and to act steadily to create a bright future.

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Contributed, Feb 2005

URL of Hitotsubashi University's Graduate School of Commerce and Management:
http://www.cm.hit-u.ac.jp/whats_new/English_Guide/guide_top.html