Transformation of the Metropolitan Machinery Production System during the Microelectronics Innovation

Many researchers have put forward the thesis that a transition is taking place from Fordist mass production to post-Fordist flexible specialization with the microelectronics (ME) innovation. In the flexible specialization approach based on Marshallian ideas, terms such as “reregionalization” or “recentralization” have become key words for contemporary industrial development and competitiveness. However, there is little empirical study to support this thesis. In what way has the diffusion of ME innovation and flexible production methods affected the locational and competitive situation of Japanese small and medium-sized machinery industries? The purpose of this study was to elucidate the transformation of the intra-metropolitan machinery production system during the ME innovation from the viewpoint of the division of labor and linkage systems. This paper takes the plastic-mold manufacturing industry in the Keihin area as an example of small and medium-sized machinery industries.<br> The development of Japanese mold technology has formed the basis of the mass production system of durable customer goods. When Japanese industries as a whole experienced drastic locational decentralization in the 1960s and early 1970s, the mold manufacturing industry maintained agglomeration in the existing core industrial areas with its need for skilled workers and numerous related manufacturers. The mold manufacturing industry also experienced rapid locational dispersal during the recent technological innovation.<br> Decentralization of the plastic-mold manufacturing industry from the Tokyo Jonan district (the inner-Keihin area, see Fig. 4) occurred in the 1980s. The locational change not only spread over a wide spatial scale to the North Kanto or the South Tohoku region (see Fig. 1), but also to outer areas such as the Kawasaki-Yokohama area (see Fig. 5). Mainly “intermediate type” manufacturers relocated to outer areas. This type of manufacturer was not able to turn to large-sized management that used only ME devices, because of the lack of funds for capital investment. Therefore, if they intended to continue to operate their business, they had to remain in the Keihin area and accept ME innovation to some degree. The area provides good external economies for small businesses. However, they could not find premises in the Tokyo Jonan district and were forced to relocate to outer areas. In contrast, “skill-intensive” manufacturers remained in the Tokyo Jonan district with their highly skilled workers, while “capital-intensive” ones dispersed around the country.<br> Mold production exhibited nationwide breadth during the ME innovation, while mold manufacturers remaining in existing industrial areas or outer areas have faced severe competition. Nonetheless, they were able to maintain competitiveness by increasing the added value of molds and saving on equipment costs by depending on external economies such as a specific labor market and specific subcontractors. The mold production area formed two internal subsystems in the process of spreading spatially. On the one hand, the Tokyo Jonan district that is the traditional heartland of mold production specializes in mold production for functional devices and uses technological systems appropriate to this type of production. On the other hand, those in outer areas specialize in mold production for exterior parts and use technological systems appropriate for the age of small batch production.<br> In conclusion, this study demonstrated a continuous mechanism in which the ME innovation divided the manufacturers into strata and induced locational activities suitable for each stratum. The innovation has undoubtedly injected new vitality into metropolitan machinery manufacturers. However, there is no evidence of “reregionalization.”