The Development of the Digital Contents Industry and the Policy Responses - Silicon Alley -

ABSTRACT

By what means should Japan use policy support to nurture the contents industry? In regard to policy support measures, much can be learned from the recent regional agglomeration of the contents industry occurring within large American cities. This report discusses the results of a field survey of the agglomerated contents industry region known as New York's "Silicon Alley". Further, combined with the results of the investigation of a preceding survey on agglomeration in San Francisco, this report elucidates the development mechanisms that lead to contents industry agglomeration, re-investigates the conditions of agglomeration regions, and clarifies the role played by urban policies in the development of the contents industry.

In terms of proximate geographical conditions in the contents industry, there are three elements on which cooperation between businesses and specialists depend: (1) the roots of contents production, (2) characteristics of contents businesses, and (3) working procedures. If these three elements are concentrated, there exists the essence for accelerated development of the contents industry.

Four conditions are necessary for the regional agglomeration of the contents industry : (1) a high level of social amenities, (2) affordable space, (3) a concentration of artists, and (4) contents-related educational organizations. Furthermore, in the case of New York, existing media-related industries and financial businesses played a large role in developing the contents industry.

Policy measures played an important role in developing New York's Silicon Alley. This is because the essence of the contents industry-accelerated development through agglomeration-was combined with New York's pre-existing regional conditions, and was supported effectively by the government both directly (through the establishment of regional revitalization plans) and indirectly (through advertising and by remodeling empty buildings).

If the contents industry is to develop through agglomeration, and a certain measure of conditions exist within an area in which agglomeration occurs (as listed above), the Japanese contents industry can be developed by effectively concentrating support in those cities where agglomeration conditions are present. Furthermore, as the potential for the germination of contents industry agglomeration is already present in such cities, to improve development it is imperative to promote research regarding the state of the contents industry and appropriate policy responses.