Local Development in the Higashi Osaka Industrial District

Abstract

In this paper we address changes in the Higashi Osaka industrial district, part of metropolitan Osaka, western Japan. Higashi Osaka is distinctive due to its very high density of factories and its wide variety of consumer and industrial products. After clarifying the city’s manufacturing structure, history and spatial development, we explain the contemporary challenges facing industrial development. Along with slower economic growth in Japan commencing during the 1990s, Higashi Osaka has experienced declines in production output, employment and the number of establishments. Recent problems include competition with lower-cost East Asian countries as well as stricter regulations on local industries due to their incompatibility with nearby residential uses. To illustrate these general trends we undertook a limited number of in-depth interviews with four firms that produce industrial bolts, screws and associated machinery. The results indicate that these firms have responded by a variety of business policies, including working more closely with their customers and producing innovative machinery. This suggests that it is unlikely that Higashi Osaka will face terminal decline in the foreseeable future as these firms have upgraded their production and associated activities rather than abandoning the district. The paper concludes by illustrating how public policy has played a role in supporting new technologies and innovative small firms in this industrial district.

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