Industrialization ofDeveloping Countries
Analyses by Japanese Economists

Edited byKenichi Ohno
Takahiro FujimotoIndustrialization of Developing Countries
Analyses by Japanese Economists—The 21st Century COE Program Joint Report—

University of Tokyo“Manufacturing Management Research Center” (MMRC)
National Graduate Institute for Policy Studies (GRIPS)“Asian Development Experience and Its Transferability”

This book is a report on presentations and discussions of thesymposium which was held on the 13th of July 2006 at GRIPS.

Copyright 蘓 2006 National Graduate Institute for Policy Studies
Manufacturing Management Research Center
National Graduate Institute for Policy Studies
7-22-1 Roppongi, Minato-ku, Tokyo 106-8677 JapanTEL:+81-3-6439-6090

FAX:+81-3-6439-6010

URL:

http://www3.grips.ac.jp/~21coe/j/index.html

Manufacturing Management Research Center
University of Tokyo
3-34-3 Hongo, Bunkyo-ku, Tokyo 113-0033 JapanTEL:+81-3-5842-5501

FAX:+81-3-5842-5536

E-mail: info@mmrc.e.u-tokyo.ac.jp
URL:

http://www.ut-mmrc.jp/e_index.html

Preface
As the Japanese economy is finally getting out of the post-bubble recession, the time has come to charter a new course for Japan’s renewed
dynamism. How should Japan identify and position itself on the global stage
in the twenty-first century, and what should it endeavor to achieve? Despite
economic recovery and some progress in domestic reforms, Japan in recent
years has not presented or followed a clear long-term vision in its external
policy, especially in its dealings with economic matters regarding technology, trade, investment and aid. There are issues that have attracted ourattention, such as the alleged threat posed by emerging China, official promotion of FTAs, global mega-completion and industrial reorganization, adeclining trend in Japanese ODA, Japan’s attempt to protect its intellectual
property rights, and the return of some Japanese overseas investments toJapan. But these events do not collectively tell us where Japan is headed. Infact, Japan’s diplomatic relations with neighboring East Asian countries,
which should be strengthened, actually seem to have eroded recently. We
need to stop drifting and begin to draft a new grand map which can lead us
to a new voyage, beyond adjustment of interests and inertia of the past.
The mission of the National Graduate Institute for Policy Studies (GRIPS)
is to provide realistic and concrete policy analyses which can meet therequirements of our time. Our intellectual contribution is directed not onlyto Japan but also to developing countries where the majority of world population live. We want to continuously innovate the methodology of researchand education. We aim to do that through building intellectual networks
which are open and can promote interaction among exceptional talents andsuperior insights. Our Twenty-first Century Center of Excellence (COE) Program, Asian Development Experience and its Transferability, is an important means to realize this goal.

Although our COE program is in the intermediate stage, we already havesome interesting results to report from intensive field works in developingcountries. We have organized this symposium to share and discuss themwith a broader circle of experts. We have invited the University of Tokyo’s
COE Program, Manufacturing Management Research Center, which studies
industrial issues in developing countries and is highly acclaimed, as ours, tobe a co-host. We anticipate, through our preliminary discussions, that our
two COE programs will have common orientation and be able to produce,by mutual learning and complementarity, a concrete vision that can guide
Japan’s globalization and its contribution to the developing world. Thisvision still remains a rough sketch today, but we would like to present it toyou before it is polished up to become a detailed blueprint.
We hope that our intellectual inputs will be a catalyst for a new round of
productive policy discussions.

July 2006
Toru Yoshimura
President, National Graduate
Institute for Policy Studies

Contents

Preface

Report 1:

Architecture-based Comparative Advantage in Japan and Asia

Takahiro Fujimoto (University of Tokyo) …………………………………1

Report 2:

Vietnam s Industrial Policy Formulation: To Become a Reliable
Partner in Integral Manufacturing

Kenichi Ohno (GRIPS) ………………………………………………………11

Report 3:

Competitive Strategy of Global Firms and Industrial Clusters:
Case Study on the Hard Disk Drive (HDD) Industry

Tomofumi Amano (Hosei University / University of Tokyo) …………27

Report 4:

Strategy for Cluster-based Industrial Development in Developing Countries

Keijiro Otsuka and Tetsushi Sonobe (GRIPS) …………………………67

Minutes of Discussion …………………………………………………………81

About the Presenters……………………………………………………………95