Mitsuru Sato and Yoshiyuki Okamoto
This chapter presents the evolution of Japan’s regional production systems through the case of the Suwa region, which is one of the regional industrial areas in Japan. The objective of the chapter is to explain the sustainable innovation process and to consider the role of a region in innovation creation. In Suwa, the active interaction of the region brings regional innovations toward sustainable development, while utilizing accumulated technology of the region. The region provides opportunities which ease the knowledge flow between actors within the region and outside the region, by establishing core organization.