Industrial Cluster Project
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Project to Form Next Generation key Industries
 Aiming to form an industrial cluster in manufacturing, medical-biotech, and IT in the Chugoku region
Overview: The objective here is aiming to form an internationally competitive industrial cluster in the Chugoku region that can shoulder the next generation by supporting all stages from discovering seeds to commercialization in collaboration with related organizations in the manufacturing fields of automobiles, industrial machinery, electric/electronic parts, and FPD-related, and in the biotechnology, medical equipment and IT fields.
Industry to focus: Medical and welfare equipments, biotechnology, machinery systems, parts and materials and their processing (electric and electronic parts related), leading-edge parts and materials and their processing (mainly south of Okayama Prefecture and Hiroshima area), FPD-related (mainly the Bingo and Ikasa areas)
Target areas: Entire Chugoku region (Tottori Prefecture, Shimane Prefecture, Okayama Prefecture, Hiroshima Prefecture and Yamaguchi Prefecture)
Promotion organization: Chugoku Industrial Cluster Forum
URL: http://www.ciicz.jp/clusterhp/
  Chugoku Industrial Innovation Center
  TEL: +81-82-241-9927 FAX: +81-82-240-2189
  Chugoku New Business Conference
  TEL: +81-82-221-2929 FAX: +81-82-221-6166
Collaborating key organizations: Organization for Tottori Industrial Promotion, Shimane Industrial Promotion Foundation, Okayama Prefecture Industrial Promotion Foundation, Hiroshima Industrial Promotion Organization, Yamaguchi Industrial Promotion Foundation
Outline of project promotion system
Outline of industry-university-government network:
The network consists of about 400 companies, 15 universities and public research institutes, 9 local governments, and 48 financial institutions.
Characteristic efforts of the project:
The Cluster Manager controls the status of progress among the projects and provides appropriate support to all projects according to their current stage. More specifically, “grass-roots surveys” of companies and universities are conducted to find technologies and personnel that can become the core assets of cluster activities. The cluster then (1) matches identified technological seeds to company needs, (2) holds workshops focusing on specific themes, (3) supports the central government's technical development measures for accelerating research and development, (4) and assists companies by displaying their exhibits at specialized exhibitions and dispatching experts to help them commercialize their research results, and thereby vigorously supporting such commercialization.
Philosophy and efforts for business creation:
We have set a goal of forming one cluster based around core companies and another that focuses on cutting-edge technology from universities and other institutions. In preparation for this, we are promoting the development of technologies that have a high market and business potential, identifying companies that can provide market channels for the technologies, and strengthening our ties to financial institutions to make financing more readily available. Other activities we are involved in include broadening our collaboration partners (including overseas businesses) and partnering with large corporations to provide avenues to new markets.
Interministerial Collaboration Including Knowledge Cluster.:
We are solidifying industrial cluster activities to develop business opportunities out of the research results of MEXT’s Knowledge Cluster Initiative and other such projects. We are supporting the creation of new markets for ventures originating at the university level that are based on that research.
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Key person
Yutaka Miyoshi In the Chugoku Region, efforts are being made to further collaborations particularly in such important industries as automobiles, flat-panel displays and biotechnology where a wide base is required for commercial viability. In addition to strengthening ties within the region, we are working on expanding our network outside the region as well. These efforts include building collaborations with large corporations to create a structure that facilitates business activities. On the financial front, we are strengthening ties to financial institutions to make funding more readily available for the Technology Business Evaluation Project that is being developed under the Project to Form Next Generation Key Industries.
For FY 2009, we are firming up our collaboration with the overseas cluster with a focus on the automotive field, focusing our energy on support for companies participating in international development and forming an industrial cluster that is competitive in the global market.
Yutaka Miyoshi
Cluster Manager (General), Chugoku Industrial Cluster Forum, Chugoku Industrial Innovation Center
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Project achievements
(Results of FY 2006 to 2007)
Number of new businesses launched:
(The number of the production of new goods and products and the provision of new services)
3,460
Target figure
Number of new businesses launched (in 5 years from FY2006): 3,000 businesses in 5 years
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Main Participants of the Project
Private companies: Imanishi Manufacturing Co.,Ltd., Choshu Industry Co.,Ltd., Nakashima Propeller Co.,Ltd., Matsue Doken, Inc. (the members of Advisory Forum for Industrial Cluster Promotion)
Related administrative organizations: Organization for Tottori Industrial Promotion, Shimane Industrial Promotion Foundation, Okayama Prefecture Industrial Promotion Foundation, Hiroshima Industrial Promotion Organization, Yamaguchi Industrial Promotion Foundation, SMRJ
Financial institutions: Tottori Bank, Ltd., San-in Godo Bank, Ltd., Chugoku Bank, Ltd., Hiroshima Bank, Ltd., Yamaguchi Bank, Ltd., and other 43 banks (the members of Industrial Cluster Support Financial Forum in Chugoku area)
Others: Yamaguchi Technology Licensing Organization, Ltd. (the members of Advisory Forum for Industrial Cluster Promotion)
Example
ACHIEVEMENT EXAMPLE 1 Summary of the Technology Business Evaluation Project
The purpose of the Technology Business Evaluation Projects to provide evaluations of new products and business ventures by small and medium-sized businesses as well as to provide assistant in solving problems. The services that will be provided in this project are outlined below. Evaluations will be done by outside experts. This project is being implemented by the Industrial Cluster Planning and Promotion Organization-which is made up of the Chugoku Industrial Innovation Center and Chugoku New Business Conference-and the Chugoku Bureau of Economy Trade and Industry.
Focus of evaluations
New product and business ventures developed by small and medium-sized companies
Applicants
Financial institutions (SMEs apply through a participating financial institution)
Managed by
The Technological Business Evaluation Committee of the Chugoku Industrial Cluster
Supporting organizations:
The Chugoku Industrial Innovation Center (will house the offices)
Chugoku New Business Conference
Chugoku Bureau of Economy, Trade and Industry
Evaluators
Outside specialists including university researchers, management consultants and attorneys
Evaluation period
About one month from time of application submission to receipt of evaluation
Cost
100,000 yen per evaluation
Evaluation content
(1) Overall report, (2) specific evaluation, (3) summary of problems and issues, and (4) advice for solutions
Items to be evaluated:
(1) The project concept, (2) the company's technological abilities, (3) marketability, (4) feasibility, (5) management capacity, and (6) overall assessment
Advantages of this system
The results can be used when applying for a loan with a financial institution, making funding procurement go more smoothly.
Potential gaps between the technology and the target market are identified, so that corrections to the business plan can be made at an early stage.
Support is provided by the Industrial Cluster Planning and Promotion Organization including guidance on partners who can provide assistance on problems facing the venture.
ACHIEVEMENT EXAMPLE 2 Convention at the Nissan Group’s facility
·In November FY2008, a convention was held at the Nissan Technical Center, the first time for a convention whose focus is collaborating with financial institutions. Cosponsored by promotional and key organizations as well as small and medium-sized business organizations, the convention was an extension of the event held in FY 2007 at Toyota Group facilities.
·During the course of the convention, a great deal of interest was expressed in local technological proposals over a range of fields. In addition to five directors from Nissan Motor Co., Ltd., including Executive Officer Yamaguchi, about one thousand people came to the event.
·Next year’s convention is planned to be held at a different automobile manufacturer’s facilities.
photo
Functional integrated modules for use in the front end of automobiles and cockpits

Advantages of this system
·Percentage of participants forming an agreement: 7% - 4 companies: two companies each from Okayama and Hiroshima Prefectures. Total contract money: 8 million yen.
·Currently 19 other deals are under negotiation.
·Most deals are orders for prototype products, with favorable results expected.
Sponsors:
Chugoku Bureau of Economy, Trade and Industry, SMRJ Chugoku branch, Chugoku New Business Conference, Hirogin Researchi Institute
Cosponsors:
Key organizations: Organization for Tottori Industrial Promotion, Shimane Industrial Promotion Foundation, Okayama Prefecture Industrial Promotion Foundation, Hiroshima Industrial Promotion Organization, Yamaguchi Industrial Promotion Foundation
Support:
The Chugoku Industrial Innovation Center, Development Bank of Japan Inc., Chugoku Branch
Cooperation:
Hiroshima Bank
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Nissan Motor Executive Officer Yamaguchi listens to a talk Exhibitors advertising their technologies 1 Exhibitors advertising their technologies 2
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