The Concentration of the Internet Industry in Tokyo:Toward the Development of a Japanese "Silicon Alley"

ABSTRACT

Based on previous research concerning the new media industry cluster in San Francisco and New York, this report thoroughly investigates the new media industries in Tokyo. The results find that roughly 1300 enterprises are located in Tokyo's 23 wards, and out of this number 1/4 are clustered in Minato Ward and Shibuya Ward. As the locations of new enterprises begin to accumulate in this area, it is appropriate to dub this area Japan's "Silicon Alley".

When comparing the characteristics of new media enterprises in Tokyo with those of San Francisco and New York, it is clear that Tokyo's new media enterprises are larger and older. This results in a difficulty for experts to communicate and collaborate with their counterparts in other companies, and thus the "mechanisms of cluster and growth"-which have made the new media enterprises in San Francisco and New York so successful-are not as effective in Tokyo. However, some grass roots organizations seeking to support and promote new media industries have recently emerged within Tokyo's cluster, and spaces where experts can exchange ideas and opinions are being coordinated. Furthermore, new enterprises and projects are beginning to emerge from these new spaces.

From the perspective of "the city's function as an incubator of new media industries", comparing the environment of Tokyo with that of San Francisco and New York reveals that office rent for the former is much higher and the quality of educational institutions lower than that of U.S. cities.

Municipal government support for Tokyo's new media cluster is low. On the other hand, some private companies have begun supporting new media companies within Tokyo's cluster by offering "incubation facilities".

In order for Tokyo's current new media cluster to be as successful as the U.S.'s, grass roots organizations are anticipated to take a more active role. Moreover, municipalities-and the Tokyo Metropolitan Government in particular-should aid these grass roots organizations, improve the city's function as an incubator for furthering the accumulation of enterprise, and promote the existence of Tokyo's new media cluster with the purpose of constructing a globally recognized brand image.

Introduction