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Toward the Formation of a Japanese Model IT Cluster: From the Perspective of Internet Company Inter-Firm Networks
No.231
May 2005
Senior Associate Kou Yukawa
ABSTRACT
What is important for IT clusters and the individual companies positioned within them is not the physical proximity of other firms in the same cluster but rather the nature of the inter-firm network that exists between the companies, and what kind of effect this network has upon their performance. An analysis of the inter-firm networks that exist among the Internet companies clustered in the Tokyo wards showed that the network of Internet company investors was likely to be improving revenue and growth potential.
The investors that form the investor based inter-firm network are primarily major IT companies, not venture capitalists as is the case in Silicon Valley. Moreover, these major IT companies are playing an important role as actual business suppliers to these Internet companies. Thus, it is highly possible that encouraging the flow of major IT company investment will, at least in the short term, contribute to the development of the Japanese model IT cluster.
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