From Smithian Growth to Schumpeterian Development: An Inquiry into the Development of the Kiryu Weaving District in the Early 20th Century Japan
This study finds that the process of evolutionary development of the Kiryu weaving district in Japan from 1895 to 1930 can be divided into the two phases, i.e., Smithian growth based on the inter-firm division of labor using hand looms and Schumpeterian development based on factory system using power looms. Weaving manufacturers-cum-contractors led Smithian growth by organizing sub-contracts with out-weavers in rural villages among others, thereby contributing to the steady growth in production. Newly emerged joint stock firms played a role of genuine entrepreneurs by realizing significant scale economies and transforming the traditional weaving district into a cluster of large modern factories.
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- Keijiro Otsuka, 2006. "Cluster-Based Industrial Development: A View From East Asia," The Japanese Economic Review, Japanese Economic Association, vol. 57(3), pages 361-376.
- Tomoko Hashino & Takafumi Kurosawa, 2011. "Beyond Marshallian Agglomeration Economies: The Roles of the Local Trade Association in a Meiji Japan Weaving District (1868-1912)," Discussion Papers 1113, Graduate School of Economics, Kobe University.
- Jones, Geoffrey & Zeitlin, Jonathan, 2009. "The Oxford Handbook of Business History," OUP Catalogue, Oxford University Press, number 9780199573950.
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