Journal of Japanese Management Vo.1, No.1, November 2016

ISSN 2189-9592

Entrepreneurial Activities and Residential Networks ofCreative Areas in Japan and Korea
Rihyei Kang

Niigata University of Pharmacy and Applied Life Sciences
Japan Creativity Society E-mail: rie@nupals.ac.jp
Takahiro Kawaji

Kurume University
Japan Creativity Society E-mail:kawaji_takahiro@kurume-u.ac.jp
Abstract
This study surveyed and compared the creative and entrepreneur activities of small-size
local areas in Japan and Korea adopting creative city policies with qualitative analysis. The
result showed that the tolerance of these areas had influence on the entrepreneur activities, andthe strength of social network among citizens had related with the effect of creative city policies.
Along with the findings from the previous studies, this study proposes a new finding that
residential network, which has not been discussed in the original creative city theory, and its
strength could be essential factors affecting success of creative city policy and entrepreneur
activities.
Keywords
Creative city, Entrepreneurship, Residential Networks(1) Introduction

attract creative class, give birth to creative firms,

The theoretical background of creative cityand finally succeed in regional vitalization

policy can roughly be divided into two streams.

through making its environment attractive for

One is based on Landry (1995) and the other iscreative workers. Specifically, he classified

on Florida (2004). This study is based on theprofessions such as scientists, artists, designers,

latter as it is more widely adopted.

entertainers as “Super Creative Core” andAs a bearer of modern economy, Florida

defined adjacent professions, such as managers,

pointed out the existence of “creative class,” a

as “Creative Professions.” People belonging togroup of people engaged in economic activities

these classes exceeded 30 percent of total

with their creativity as initial capital, andpopulation in the United States according to“creative economy” sustained by them. He

Florida (Florida, 2004).

criticized conventional policy which tried toCreativeindustry

excelsothersinincrease population by inviting large-size

production effectiveness. For example, althoughfactories, and insisted that local area could

workers of creative industry accounted only four15

Journal of Japanese Management Vo.1, No.1, November 2016

ISSN 2189-9592

to six percent of the total workforce in thein the beginning of the 21th century, and some

United Kingdom, its output of about 21 trillion

of local governments had adopted it as theyen far exceeded that of financial sector

theoretical basis for their policies.

(NESTA, 2004). According to Yoshimoto (2009,First of all, Kanazawa Association ofp.42), Japanese creative industry had 250

Corporate Executives started an international

thousand offices and 2.19 million employees inconference “Kanazawa Creative City Confe-

2006, which accounted for 4.4% and 4.0% of therence” in 2001. Then Yokohama came to the firstwhole offices and employees respectively.

city to adopt creative city policy by establishing

According to the trial calculation of Nomura“Creative City Promotion Section” and starting(2012, p.23), the output of Japanese creative“Creative City Yokohama” project in 2004.

industry was 64.4 trillion yen, comparable to

Sendai, Kobe and some other cities followed

those of agriculture (8 trillion yen), financial

Yokohama, but this movement was mainly

industry (98 trillion yen), steel industry (16observed in large cities such as ordinance-

trillion yen), automobile industry (including

designated cities in Japan (Sasaki, 2012).

parts industry) (42 trillion yen), medical welfare

Japanese Agency for Cultural Affairs

industry (42 trillion yen). This indicates thatlaunched “Creative Cities Network Japan” increative industry is one of highly efficient2013, which held small-size autonomies such asindustries which can produce large output with

Higashikawa town in Hokkaido prefecturesmall workforce.

(population 7,800), Nakanojo town in Gunma

Florida (2004) pointed that three Ts - Tech-prefecture (population 17,000). The Agency

nology, Talent and Tolerance - were required inannounced that it would promote the creative

order to enhance creative economic activities ofcity policy even for areas populated below

these classes. The area with these three

100,000.

elements were said to be able to bear creativity,

However, most of researches have focused

attract creative workers, give birth to creativeon large cities, and few of them have discussed

firms created by entrepreneurs, and keep

whether this creative city policy model worked

growing regionally.

even for a small-size autonomy. Kang and
Kawaji (2015) conducted fieldwork on amarginal settlement implementing the policy,
and found that although it was effective forentrepreneur

activities

andbusiness

performance in the area, unexpected reverse
economic effect was caused by the fact that
regional intolerance drove out immigrated
entrepreneurs and artists from the area.

Figure 1. Florida's 3Ts for Creative City

Creative city policy has been aggressively

Source: Florida, 2004

pursued in not only Japan but also Korea,(2) Background in Japan and Korea

mainly among large to middle cities. For

Florida’s theory was introduced into Japan

instance, Incheon city joined UNESCO Creative
16

Journal of Japanese Management Vo.1, No.1, November 2016

ISSN 2189-9592

Cities Network in the field of Craft and Folk Art,

residential approach. That is Seongmisan

Seoul city did in the field of Design and Jeonju

Village in Mapo district of Seoul city, where

did in the field of Gastronomy.

community development has been led by

In addition to this, Korean government

residents. They started business such as

started to implement creative city policy1.

theaters, schools and cafes consecutively, andbecame popular even among Japanese citizens
engaging in regional vitalization. Related books
were published (Empublic & Nihon Kibou
Seisakujo, 2011) and visiting tours wereconducted in Japan2.
(3) Research
1. Research Question
Creative city policy has come to be
implemented in not only large cities, but also
small-size areas as stated above. Kang and
Kawaji (2015) conducted a survey on a marginal
settlement implementing the policy, and foundthe unexpected economic effect caused by thefact that regional intolerance ousted creative

Figure 2. Creative & innovative cities and supporting

workers to entrepreneur activities outside thecompanies in Korea.

area. In order to explore the difference between

Source: Korean Creative Economy & Innovation

characteristics specific to the creative city

Center, 2016.

activities of small-size areas and those of large
cities, we decided to conduct surveys in wider

The government designated eighteen cities

areas.

throughout Korea, where leading companies

Specifically, our objectives are to explore (1)were designated as implementing entities, andwhether creative city policy is effective even forstarted “Creative Economy Innovation Center”

small areas, (2) if it is so, how it contributes toproject aiming at creation of creative economy

development of the area, (3) what kind of

by a policy-driven approach. This is a

influence entrepreneur activities receive, bymechanism

issurveying typical cases of small-size areas

responsible for promotion of creative economy invitalizing communities with creativity (two in

the area.

Japan, one in Korea).

in

which

each

company

On the contrary to the governmental
approach, there is an area famous for its

2 Research Method

1 In President Park Geun-hye’s first press conference inat that time, some of which included “Seongmisan Cooperative Visiting Project” by NPO Corporation Akatsuki,“Let’s go to see, as ‘town development’ in Seoul is awesome”
by Bukasu Do! Regional Revitalization Section.

Jan 6th 2014 after her inauguration.
2 We encountered some of tours from various places, suchas Tottori prefecture in Japan. Many other tours were held

17

Journal of Japanese Management Vo.1, No.1, November 2016

We adopted qualitative approach for small

ISSN 2189-9592

Kang (2013) studied Sendai and Kobe cities.

areas vitalizing communities using creativity.

For small creative areas, there are few

Specifically, we visited related facilities andstudies conducted at this point, but the study ofinterviewed policy makers. The interviews were

small area with population decreasing could

recorded, converted into text, and analyzed withmislead us to the problem of depopulation. Thus

SCAT 4-step coding method (Otani, 2007).

we excluded this field and concentrated on

The surveyed areas were Yanedan district“creative small area with population increasing,”

Kanoyaprefectureand selected three typical areas, Yanedan,(conducted in 2014), central area of Kurume city,

Kurume city and Seongmisan Village. They are

Fukuoka prefecture (2015), and Seongmisan

not only small size population increasing areas,

Village in Mapo district of Seoul city, Korea

but also famous for creative activities. Yanedan(2016).

has its own source of income based on its

in

city,

Kagoshima

creative

regional management philosophy(Toyoshige, 2004). Creative regional economic
activities of Kurume city are supported byentrepreneurs (Kawaji et al., 2016, p.1-4).
Seongmisan

Village

has

built

its

local

infrastructure from the point of building
resident associations (Empublic & Nihon Kibou
Seisakujo, 2011, pp.40-45).
Table 1. Creative city research matrix

Figure 3. Creative cities in Japan and Korea
Source: Prepared by authors.

Population

Large City

Small Area

Decreasing

Kobe

Depopulation

Increasing

Yokohama
Sendai

Not studied

Let us explain the reason why these areas
were chosen. There are four research fields(4) Results

regarding creative cities (Table 1), large city

1. Yanedan district

with population decreasing, large city withpopulation

increasing,

small

area

Yanedan district is a small settlement inwithKanoya city, Kagoshima prefecture. It had

population decreasing, and small area with

about three hundred residents and aging rate of

population increasing.

over 30 percent in 2015. It had carried out

For large creative cities (with population

aggressive reforms (starting town businesses

around more than 0.5 million), there are various

producing and selling Shochu (Japanese

reports already. For example, City of Yokohama

traditional white liquor), selling deodorants,

and Suzuki (2010, p.130-231) summarizedetc.) since Mr. T (age 75) was installed as acharacteristics of twelve creative cities, andpresident of a residents' association.
18

Journal of Japanese Management Vo.1, No.1, November 2016

ISSN 2189-9592

Table 2. Concepts extracted from interviews (Yanedan district)
Interviewee

Concepts

T

A

B

C

D

E

70s
Male
President ofa residents'

40s
Male
Photo
Design30s
FemaleGrass
Sculpture

30s
Male
Painting

60s
Male
BronzeSculpture

60s
Male
Ceramics

++

-

-

--

--

+

-

--

-

+++

-

-

N/A

+++

++

+++

++

+

++

---

---

---

---

--

++

+

-

-

-

+

N/A

+++

-

+++

+++

+

+++
+++

--++

--++

--+++

--++

+
++

association

Enhancing creativityof the area
Enhancing creativityof his/her own
Enhancing skillsof his/her own
Tolerance of the area
Entrepreneur activities
in the area
Entrepreneur activities outside
the area
Willing to live continuously
Total Valuation

Source: Prepared by authors.

The

reformwassuccessful

and

its

On the other hand, artists suffered from such

residential internal revenue sources totaled toindifference,haddifficultyinadapting

be over five million yen, which made it possible

themselves to old conventions in the area, andto distribute bonus of ten thousand yen to eachwere apt to disconnect from association withof one hundred twenty two households.

local residents. Tolerance of the area was at the

An artists invitation project had been

worst level, which made the artists discontent.

started since 2006, aiming at enhancing

As a result, the artists got out of the district

cultural level of the area by letting artists live

to outside area and achieved good performancevacant houses with low rent fee. Houses ofby actively engaging in entrepreneur activities

immigrated artists were named as Geihinkan

with firms and organizations there. This made

(VIP guest house), galleries reformed fromthe district lose some of the outcome of creative

vacant houses were scattered around theeconomy, but they still could establish its brand

district, and an art festival was held once a year.

as “village of artists.” Thus both of residents andWe interviewed Mr. T and all artists living inartists accomplished part of their objectives.

the district at the time of survey. The

In contrast to this, one of the essential

interviewed contents were converted into text,

objectives of creative city policy, “development ofcoded, and reconstructed by concepts (Table 2).

regional creativity,” was not observed in the

The table indicates the creative city policy

area, whereas it was active outside the area.

in the area caused discontent, dissonance andJudging from this finding, we confirmed that adisagreement on future direction in both sides

creative economy model was effective even forof residents and artists.

small-size autonomies, but the largest inhibitor

Residents had little interest in creativity of

was tolerance.

artists or enhancement of regional creativity.
19

Journal of Japanese Management Vo.1, No.1, November 2016

2. Central area of Kurume City

ISSN 2189-9592

with person.” According to Mr. I, each subject

Kurume city is a core city holding thirty

engaged in a job which he/she believed to realize

million people, and one of few cities withhis/her “belief” and worked separately before

increasing population in Japan. Nishinippon

she came to Kurume. They tried to vitalize theShinbun (2014) listed three reasons for thearea using various methods, but such trials

increase as follows; (1) low house acquiring cost,were not successful. One of the reasons could be(2) reliable medical system, (3) increasedlack of connection among them. “We knew each

employment by local firms, which reduced

other’s face, but that is all.”draining out of young workforce.

After meeting at an event held by city

For promoting creative activities in city,

government and noticing this problem, they

Kurume city invited Ms. Yuko Yamashita to

startedHighmart Kurume, a third sector company. She(Yamashita, 2015, p.18) in which participants

was a regional vitalization producer andconnected their pieces of wisdom. “It did not

succeeded in promoting creative activities income out in a good shape actually” (Yamashita,urban areas such as Toyama city (Yamashita,

2015, p.17) at first, but “Wisdom such as vision,2013). Under her planning and guidance, we

idea, network in each area began to connect

conducted

Connection

Project,”

interviews

toeach other” (Yamashita, 2015, p.21) after

activities

infinding that “there are many active people!”

Kurume city. Note that we moved from place to(Yamashita, 2015, p.19) in each area of Kurume

place on foot, indicating that creative activities

city according to Yamashita.

residents

non-structured“Wisdom

involvingcreative

were carried out within walkable distance.
Subjects

were

Ms.

Yamashita

stronger human relation gets. Such tendency is(indicated as Mr. Y), Mr. F, a designer/producer

strong in local cities, where territorial, blood andof Kurume Kasuri (a traditional splashededucational relation-ships temper the tendency.

textile), Mr. G, a Kurume Kasuri wholesaler

Under such situation, Yamashita succeeded

and a cheap sweet shop owner, Mr. H, a video

in not only connecting people, but also bringing

creator, Mr. I, a business conductor, and Mr. J, amany points connecting Kurume residents andreal estate renovator. All of them wereoutside people. For example, she invited Ms.

managers, as young as their thirties, had

Tomsuma Alternative, who is a contemporary

territorial

art performer, from Toyama prefecture in “2016relation-ship,

Yuko

In general, the eager activity gets, theandengagedinentrepreneur activities.
Most

of

interviewees

Wisdom Connection Lecture” held in Feb 2016.
startedtheir

By asking her to explain cases and information

businesses after working or studying outside

nothing to do with Kurume, she tried to break

Kurume city. All of them strongly respected Ms.

firm relationships in the area. She continues

Yamashita, and stated that she brought weak

this kind of activities, which are thought toties into strong territorial and blood ties ofbring weak ties into the area.

Kurume, which had influenced on their creative
activities at that time.

3. Seongmisan Village in Mapo District of

Yamashita said “my job is to connect person

Seoul, Korea
20

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Table 3. Concepts extracted from interviews (Kurume city)
Interviewee

Concepts

Y

F

G

H

I

J

40s
FemaleRegional
activation

30s
FemaleTextileDesign30s
Male
Textile
Shop

30s
Male
Video
Artist

30s
Male
Share
Office30s
Male
RentalHouse

Business

Business

Coordinator

Entrepreneurial
Environment
Experience outside
KurumeBusiness Performance
Willingness to makeregional contribution
References to Strong
Network
References to Weak
Network
Respect to Yamashita

++

++

+

+++

+++

+++

+++

++

—

+++

++

+

——

+

++

+

+

+

++

+++

+++

+++

+++

+++

+++

++

++

++

+++

++

+++

++

++

++

+++

++

N/A

+++

+++

+++

+++

+++

Source: prepared by authors

A part of residential area adjacent to“we came to know that housewives usually havedowntown Seoul is known as Seongmisan

secret savings of ten million won (US$ 10,000)

Village. Twenty-five households began toor so.” Actually, most investors participating inconnect each other and engaged in regional

entrepreneur projects invested around ten

activities, taking the opportunity of building amillion won to cooperatives, restaurants,

nursery by themselves. They have continuously

groceries, cafes or theaters.

engaged in entrepreneur activities, making the

The environment of these residential

area known as a creative activity area.

businesses is, however, harsh. One of the

Today,residents

cooperatives,difficulties is specific to Korean lease contract,

restaurants, groceries, cafes, theaters and so on

in which rent increases each time of renewal.

by themselves.

“Rent rises more than twice, making us hard to

there

run

The area holds around 0.1 million residents.

continue business,” said Mr. S. Despite of it,

Two thousand citizens partici-pate in regional

more than twenty businesses have started by

activities, of which ten percent live outside theresidents for more than twenty years, indicatingarea (Empublic & Nihon Kibou Seisakujo, 2011).

their competency in entrepreneurship.

We interviewed Mr. S, a leader of

As stated earlier, not all of residents

residential activities of Seongmisan Village,

participate in these creative or entrepreneur

visited facilities in the area, and conducted a

activities. 1.8 thousand of 0.1 million residents

literature survey in March 2016. The result isparticipate, meaning that a participation ration

shown in Table 4.

is only 1.8 percent. Moreover, people living

The residents in Seongmisan Village do not

outside can also participate them. Thus,

receive any public fund, and engage in creative

although these activities are strongly related toactivities with their own funds. Mr. S told thatthe area, they can be regarded as being21

Journal of Japanese Management Vo.1, No.1, November 2016

ISSN 2189-9592

supported by weak ties, which hold residents

also strong ties, connecting entrepreneurs who

together with shared wishes such as “I want tohave strong and clear will of “want to start myprotect regional environment,” “I want to stickbusiness,” “want to be successful in business” into my own lifestyle.”

specific fields.

However, there were not only weak ties but
Table 4. Concepts extracted from an interview and literature (Seongmisan Village)
Concepts

S

Articles & Fieldworks

40s
FemaleBooks, Thesis
Visiting, Observation etc.

Entrepreneurial environment++++

Spontaneous creative activities

++

+++

Business performance—

Willingness to make regional contribution

++

+
++

References to strong network

+++

++

References to weak network

+++

++

Source: Prepared by authors.

(5) Discussion

relationships restricted inside the area had a

Viewing from the aspect of theory oflimitation (they tend to become strong ties),“strength of weak ties” (Granovetter, 1973), boththanks to the construction of connections amongof weak and strong ties had influence on

people spatially separated by Mr. Y, humancreative and entrepreneur activities in three

relations with weak ties among them werecases described in this research.

successfully formed. This type of network exerts“The strength of weak ties” is a theory

powerful influence of exchanging useful andaddressing that information of high novelty andnovel information, which is not visible fromvalue can be obtained more from weakly

inside of network with strong ties.

connected network (weak ties), such as “friend’s

In Seongmisan Village, strong ties aiming

friend,” than from strongly connected networkat starting business together were naturally(strong ties), such as blood or territory relation.

spawned among people tied weakly. This

This theory implies that weak ties enhance

mixture of weak and strong ties was observed to

exchange of information of high novelty andvitalize the area.

value, thus stimulate creative and entrepreneur

Weak ties bridge gap between strong ties,

activities.

and play an important role in conveying

In Yanedan district, artists invited fromvaluable information. This study thinks that aoutside felt intolerance to strong regional ties,

mixture of weak and strong ties facilitatesand sought weak ties outside the district.

communication and vitalizes creative andConsequently, the entrepreneur activities wereentrepreneur activities.

vitalized and content level of immigrated artists

The previous studies of creative cities haveincreased.

not put much emphasis on the connection

In Kurume city, although activities andamong residents so far. For example,
22

FloridaJournal of Japanese Management Vo.1, No.1, November 2016(2004, 2005) insisted that creative workers

ISSN 2189-9592

theory.

gathered to the area naturally as the level of

Although we made some contribution toregional creativity increased, regardless of blood

creative studies, our findings should not beor territorial relationship.

generalized as they are based on the surveys in

Our results, however, cast a doubt on it, as

limited areas and time interval. To beconnection among residents is found to be an

specifically, we focused on small population

important factor affecting creative activities.

growing areas in Japan and Korea, where

Some studies also reported the similar

creative activities were observed (Table 1). Let us

results. An international research team of EU

summarize the space and time boundarycommittee

conditions of our study as follows:(ACRE

project)

conducted

aquestionnaire survey on thirteen creative cities

a. Part of Eastern Asia centered in Japan andin EU (Martin-Brelot et al., 2010). Their result

Korea.

showed that creative workers’ willingness tob. Area where creative economic activities canlive in creative cities was much more strongly

be observed.

affected by personal connections (such as familyc. Not large region, but small area.

members or friends live in the same cities, ord. Not population decreasing, but increasingclose places) than working environment. Thisarea.

fact was inconsistent with the widely accepted

e. At the time from Dec. 2013 to Mar. 2016,

theory that good working environment withwhen our surveys were conducted.

sufficient tolerance attracted creative workers.
Their and our findings jointly indicate that

(6) Conclusion

residential network might be essential for

This research found out three importantcreative activities, and research on it should befacts.

promoted.

a.

In Yanedan district, immigrants engaging

Kang (2013) surveyed three advanced cities

creative activities escaped from strong ties

implementing creative city policy Sendai,of old residents, and sought for weak ties

Yokohama and Kobe in Japan, and pointed out

outside the district.

that although these cities helped creativeb.

In central area of Kurume city, a producer

workers by offering abandoned facilities, such

invited from outside brought weak ties andhelp might hinder spontaneous development ofcreativity from outside.

creativity.

c.

Creative economy theory originally states

In Seongmisan Village, regional active-ties
were supported by weak ties amongthat creative environment develops and attracts

residents

as

they

were

startedascreative works naturally without public support.

volunteers’ weak connections. Note that

This statement and our findings suggest thatsome activities, such as starting a businessnot only public support of facility or fund, butwith joint investment, could be supported

also policy aiming at bringing strong and weakby strong ties.

ties to residents might enhance spontaneous
creative activities when adopting creative city

Judging from these three findings, we23

Journal of Japanese Management Vo.1, No.1, November 2016

ISSN 2189-9592

concluded that when implementing creative city

human resource, but with different approaches.

policy in small-scale area, two points should be

Another approach is society type theory,

considered.

Gemeinschaft and Gesellschaft. Gemeinschafta.

Social tie is one of the required components

means a community where its members are(both of strong and weak ties arestrongly connected with territorial and blood

important).

ties, while Gesellschaft is an association where

Weak tie is necessary for creative city policy.

its members are weakly connected with benefitsb.

or contracts. The former often refers to a preThe previous study of creative cities had

modern society where people gather on

seldom focused on residential network, andcommunity events, while the latter to a modern

Florida’s creative city/economy theory insisted

global society where people communicate withthat creative workers migrate among cities

SNS. By linking weak/strong tie theory withlooking for talent, skills, and tolerance without

Gesellschaft- Gemeinschaft theory, we may

minding such network. Our findings andapproach to the problem of building ties. For

Martin-Brelot et al. (2010), however, cast doubt

example, we may say that community activities

on such a simple view.

are effective for building strong ties in

Our findings imply that strong and weakGemeinshaft while SNS are beneficial for weakties of residential network interact each other,ties in Gesellschaft.

and exert influence on will of living and creative
activities of creative workers. The underlain

Acknowledgment

mechanism is, however, unknown. Further

This research was kindly assisted by policy

research is needed for clarifying processes andmakers and staff of related organizations andvariables in it. Moreover, the way of building

facilities of Sendai city, Yokohama city and Kobe

these ties should be studied.

city. Specifically, the survey in Sendai city was

One way of approach to this problem could

assisted by the guidance and cooperation frombe management resource needed for starting

Kenichi Sato, a professor of University ofcreative or business activities. That is, byElectronic Communications. The survey inscrutinizing benefits of strong/ weak ties which

Yanedan district was kindly helped by residents

vary from resource to resource, we may clarify

and Ms. Rie Kurose, a businesswoman living in

the processes where these ties exert influence on

Kanoya city. We deeply appreciate their

the activities. For example, the benefit of strong

cooperation.

ties on human resource when starting theactivities may be “obtaining core management

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Journal of Japanese Management Vo.1, No.1, November 2016

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no Chouryuu 2: Tokusei ga Kiwadatsu(Received: May 31, 2016)(Accepted: September 1, 2016)26