Module 1 Task “Create regional Innovation”

1. Module 1 Task“Create regional Innovation” • (1)Read through all the examples of Japanese “regional innovations”. Try to define what is a regional innovation and analyze the essence of success. • (2) Find at least one regional innovation in your home country, and send it to sp_info@ischool.t.u-tokyo.ac.jpby July 28th.Use the next slide as a format. • Some of the examples, although not all, have English web links to be referred.

2. No: Title: Overview ・ ・ ・ Pictures [Q1] What is the resource ? ・ ・ [Q2] What is your value proposition? ・ ・ ・ [Q3] What is the mechanism for value creation ・ ・.

3. No: 1 Title:Irodori Overview ・Kamiyama-Town is a town where depopulation with rapid aging is seriously going on. Their main industries ( orange agriculture) has been facing a difficult situation since the free trade and cold wave. ・　Irodori, started in 1987,is a leaf business which old people living in the town pick fallen leaves and sell them to all around Japan though the agricultural association. ・The leaves are used as the decoration of Japanese dishes in high-class Japanese restaurants. ・ Using the Internet market research, they identify the needs of leaf market and fulfill it. 画像（お好きなように） [Q1] What is the used resource ? ・Fallen leaves and flowers in mountainous areas. ・ Old people living in the town [Q2] What is the value created? ・ Income (more than 2billion Yen / year.) ・ It has stimulated and motivated the old ladies in the town. [Q3] What is the mechanism of value creation ・ A man who once went out of the town returned with an idea to revitalize the town . ・The leaves is carefully selected and packed, sent to agricultural cooperative, and then shipped to all around Japan. ・Cooks come to market and bid for the leaves. ・A simple but very good match of demand and supply.

4. No: 2 Title: Eco- Turf mat Overview ・Yoshika-town in Shimane prefecture have been facingshrinking and graying farming population and the expansion of abandoned fields, which caused recession and unemployment. ・Utilizing the large fields and rich natural environment, the town started growing turf mats which are mainly targeted to urban cities. ・The project not only became a new local industry, but it also became used as a resource for tourism. 画像（お好きなように） [Q1] What is the used resource ? ・ Rich green and clean water from the streams . ・ Large fields which once were abandoned and no longer cultivated. [Q2] What is the value created? ・.Income from urban cities who purchase eco-turf from the town. ・Increased motivation and changed minds of local people who discovered new way to use abandoned fields and greenhouses. ・Contributed to urban areas’ environment; lowered temperature in the places where they introduced eco-turf by two to three ℃, and led to an decrease in the use of air conditioner and electricity. [Q3] What is the mechanism of value creation ・ Matched the condition gap between urban and rural areas; one need turf but have not room to grow it, and the another need industry and have large fields to grow turf. ・Did technological development to fill lacking technologies of the town.

5. No:3 Higashi-kawa town’s challenge Overview ・Higashi-Kawa town in Hokkaido prefecture is an ordinary town without any noteworthy resources for tourism. ・The town succeeded in inviting tourists from other towns simply by changing the marriage notification from white to pink. ・They also introduced “stockholder system”, which offers financial service, such as offering tourists accommodations in half price, for those who pay “hometown tax” to Higashikawa-cho.” ※ “Hometown tax” is a tax system started in 2006. People can chose any town, not necessarily literally ”hometown”, to donate money. The donators not only can get farming products from the town, but also can get credit for their corporate and residents tax if they pay over 2000 hometown tax. 画像（お好きなように） [Q1] What is the used resource ? ・Marriage notification which is printed by every local governments. ・Accommodations. [Q2] What is the value created? ・.Got lots of tourists including many couples coming from other cities. ・ Received 60 millions “hometown tax” from all over Japan. ・ Acquired many fans all around Japan. [Q3] What is the mechanism of value creation ・.An idea to change the color of marriage notification attracted young women who want to make their memorial days special. ・A system made Higashikawa town different than other local regions who try to get hometown tax and, attracted people, and succeeded in making people willing to keep donating money for them.

6. Overview ・A woman who is a mother of three children living in Uda city, a countryside in Nara prefecture, opened a lunch café where different chefs works day to day. ・ The cafeteria utilize old post office, asking local government for financial support and ,neighbors who once was a carpenter for renovating the building. ・The restaurant not only became famous by its delicious dishes, but also works as a incubation for local people who want to start new business. No:4 Lunch Café in NPO 画像（お好きなように） [Q1] What is the used resource ? ・Old post office building ・Local people who have special skills such ascarpentry and cooking. ・Local foods. [Q2] What is the value created? ・ A community space and playhouse for local people including children. ・ Accelerated communication and mutual understanding. ・A chance of incubation for future chefs. [Q3] What is the mechanism of value creation? ・ A woman who had been seeking for an ideal life and work in a rural area started a new restaurant. ・ Other people in the town was moved by her enthusiasm.

7. No:5 Title: Onomichi Jeans Project Overview ・Onomichi is a coastal city in the West Japan.DLS, a community development company collaborates with Resolute, a Japanese famous jeans brand collaborate. Residents wear jeans as work pants everyday. Denim specialists maintenance them. After a year “real” used jeans are produced. [Q1] What is the resource ? ・Onomichi’stexitile culture. ・Attractive atmosphere in Onomichi. ・People working in Onomichi. ・Stylish denim brand ・Onomichi fans [Q2] What is the value created? Not only getting a stylish denim, Customers can enjoy Onomichi’s atmosphere through denim. [Q3] What is the mechanism of value creation ・Without depending on manufactured products, DLS find that locals’ daily life is attractive. ・DLS’s efforts, passion, and philosophy.

8. No:6 Title: GINPACHI Overview GINPACHI is a NPO which succeeds in branding honey bee inhabiting Ginza, a city at the leading edge of sophisticated fashion in downtown Tokyo. Starting 2006, the project still draws people's attention and its field of action is expanding. [Q1] What is the resource ? ・Flowers grown in pesticide-free environment in Tokyo. ・Wide variety of people, business enterprises, fields of action in Tokyo. ・The high-class and sophisticated brand image of Ginza. [Q2] What is the value created? ・Creation of highly value-added goods through collaboration with business enterprises. ・Providing models of educational programs for deeper understanding of our ecosystem and environmental issues. ・Providing meeting grounds for people from different classes in the region. ・Encancingthe image of Ginza better all the more. [Q3] What is the mechanism of value creation The rather unexpected match of “Ginza ” ×"honey bee" and its powerful narrativity succeeds in drawing people's attention, which enables it to add high values on many different goods and field in the region.

9. No:7 Title:Kumamon Overview ・　Kumamon is the official character of Kumamoto prefecture in Kyushu. ・　He got the Yurukyara grand prize in 2011, and become one of the most famous character in Japan ・He is in licence-free, so made many goods,the sales figure of his all goods was about 30 billion Yen in 2013 ・He was on Wall street Journal in 2012 ※Yurukyara is the character which acts as a mascot for a city or prefecture, and takes on a form of a famous produce or feature for that region [Q1] What is the used resource ? ・ Curiosity of people in Kansai areaappearing so many events without introduction. ・ SNS, like twitter to show his personality [Q2] What is the value created? ・ Kumamoto prefecture becoming known better ・The residents got more pride and confidence on their prefecture. ・Make profits from tourists and selling goods [Q3] What is the mechanism of value creation ・Kumamon get popularity thanks to good marketing strategy. ・ People begin to have interests to Kumamoto prefecture itself, and go there as tourists , and spending money ・ Following demands, people there begin new business and through becoming known better, they get more pride and confidence

10. No: 8 Title:Bennese art site Naoshima Overview ・　Benesse art site Naoshima is the generic name of art activity done in Nao-island by Benesse , the Japanese famous correspondence course company ・In this activity, Bennsse made several modern museum, and put some work outside aiming to the harmony of native culture in this area and modern art . ・Thanks to this activity, many tourists come to this small island, 340 thousand people in 2008. 画像（お好きなように） [Q1] What is the used resource ? ・ Native culture in this area . The existence of company, Bennesse [Q2] What is the value created? ・ Get good recognition from many people including foreigner ・ Created jobs like opening café and guest houses for people living in the town. ・Remake rice in Naoshima using the money that Bennsse get from this activity. [Q3] What is the mechanism of value creation ・Bennsse only spent money to built museum, and modern art work not relying the subsidy. ・Art-lovers come to Naoshima as tourists ・The residents begin there new business following the demand and get revenues. ・Lastly, Bennesse carry out local activity using the profit from their project in Naoshima.

11. Overview ・　Town Kitchen is a take- out food shop Kodaira-city, in Tokyo where all the cooks working their are volunteer called “town-chef”, who worksin their spare time during housework and child raising. ・The shop offers “taste of mom’s home cooking” and spiritual happiness through their food, against other food industry with mechanization and standardization. ・They also collaborate with government and NPO’S to do project focused on community. No:9 Title: TOWN KITCHEN 画像（お好きなように）500souzai.jpg [Q1] What is the used resource ? ・ Town’s ladies who want to find work or communicate with local [Q2] What is the value created? ・Hand-made food and heartwarming food experience through the food. ・Co-creation of “the taste of the town” ・Communication with local people. ・Sharing life through food. [Q3] What is the mechanism of value creation ・Sustainable community system in which provider and users are integrated, motivating local people shift to former of the community

12. Overview No: 10 Title: “Green-valley” Kamiyama ・Deep in the mountains with beautiful nature, Kamiyama-cho is now lively with ICT ventures. ・This town is far from big cities, with the declining population (approximately 6000 at present), but different from other deserted rural areas. ・The town invites ICT ventures and artists from major cities in Japan. 画像（お好きなように） [Q1] What is the resource ? ・Less busy life than in the city with nature ・High level of investments on infrastructure and facilities, with top speed wi-fi and offices. [Q2] What is the value created? ・Although the population is still decreasing, the town can now successfully attract energetic ICT ventures. [Q3] What is the mechanism of value creation? ・High level of infrastructure, built up with the efforts by local NPOs, is the essence to attract business.

13. No: 11 Title: Kurokabe, Glassware City Overview ・Attracts 2million tourists (20 times that of 20 years ago) ・Faced with the crisis of half-ghosted town, the town started to design their historical buildings with glassware art. [Q1] What is the resource ? ・Nagaoka City developed as a castle town and still has a beautiful wooden historical buildings. ・Glassware is not something Nagaoka City was producing before; they came up with the idea with coincidence. [Q2] What is the value created? ・They combined these two resources into an attractive view of tourist site. ・Revitalized the half-ghosted town with jobs [Q3] What is the mechanism for value creation? ・The local young people who did not give up their hope launched a business company, and challenged something new, glassware art. http://en.biwako-visitors.jp/reports/nagahama/

14. No:12 Title: “Anime Pilgrim” Overview ・Big Anime fans have rushed into the places featured in their favorite Japanese animes; This activity is so-called “Anime Pilgrim”. ・The places were not widely known before, but once the anime fans initiated the boom, they turned into popular tourist spots. 画像（お好きなように） [Q1] What is the resource ? ・Japanese animes are a key to attract big fans from all over Japan, but they are not dependent solely on the animes; They created services particularly for anime fans. For example, you can take pictures with lovely anime characters in virtual reality. [Q2] What is the value created? ・Tourism have bubbled, at lease while the popular animes are broadcasted. [Q3] What the mechanism of value creation? 　・Japanese anime culture have potential to make booms among anime fans, but more successful with new services.

15. No: 13 Title: Shima-no Kaisha / A Firm of an Island Overview Shimano-no Kaisha is "a firm of the islanders, by the islanders, for the islanders" which was established in 2008 in a remote islands in Ehime prefecture, where aging and outflow of young people had cast shadow over the future of the community. It proposes and handle goods made by full use of local resources. People in that region owns the firm, operates it themselves and uses the profit out of it for the future of their Islands. [Q1] What is the resource ? ・Marine products such as salt, fish, seaweed. ・Cultural heritages such as a very long history of hand-made salt. ・Closed nature of remote islands. [Q2] What is the value created? ・Profit ・Formation of social relations between not only Islanders but also outsiders through a Shima-no-Cafe, the head office of the firm. [Q3] What is the mechanism of value creation ・Strong team building are achieved since each individuals cooperates together, leading to their own profit and social welfare. ・Making use of the existence of piles of problems and tasks, they motivate themselves by positioning their undertakings as a model case of depopulation areas.

16. No:14 Title: Rokka-Tei Overview Rokka-Tei is a famous dessert brand in Tokachi, Hokkaido the northernmost island in Japan. It introduced white chocolates to Japan. People in Tokyo can buy its cookies in Hokkaido-Fair held in department stores. [Q1] What is the resource ? ・High quality ingredients, such as wheat, butter, and eggs. ・An image of high-quality farm products and beautiful scenery in Tokachi [Q3] What is the value created? ・ Profits ・Providing job opportunities to locals ・Popular desserts for both locals and outsiders. [Q2] What is the mechanism for value creation Rokat-Tei succeed in using the image of Tokachi: high quality food and beautiful scenery. Customers can enjoy the taste all the more because of products’ name and package design. For example, “Grate Plane” and “Diary of Tocachi Cultivation .” All the shops are located in Hokkaido, which increase its brand image.

17. No: 15 Title: Producing the electricity in the region Overview Tama electricity Limited ability company was organized ,April 2013 by 10 resident of Tama area , in Tokyo prefecture in order to build sustainable system of generating electricity. In most of the country in the world, the electricity was generated by the countryside and consume in the city. But this company, which has 21 localresident member, aim to change these situation by introducing thesolar power to public facility and privatehousing complex. 画像（お好きなように） [Q1] What is the used resource ? ・Motivation of the founder, YutaroYamakawa ・The Permissive environment of Tama area to the local resident activity ・Power purchasing system of the Japanese government ・Contributing to build sustainable system of generating electricity by themselves ・The rent fee to the owner of public facility and private housing complex to utilize the dead space ・Improving the environment and social welfare in Tama area thｒough donating the some part of dividend. [Q2] What is the value created? [Q3] What is the mechanism for value creation ・ Firstly, issue bond as the first funding. ・Using the money from bond, buy the solar panel and rent the roof of the building. ・Sell the electricity generated to public power company using the power purchasing system in Japan ・pay a dividend and donate some part for local environment and social welfare

18. Overview ・Machikon is the party for matchmaking party holding by local public office forregional development, firstly held in Utsunomiya area 2004. Generally speaking, the party have so many participants from 100 to 3000. In 2012, Machikon became so popular and held about 400 times. Contrary to expectations, The Machikon is also held, not only for young but also elderly. No: 16 Title: Machikon 画像（お好きなように） [Q1] What is the used resource ? ・Needs to get to know the opposite sex ・Needs of restaurants to get customer [Q2] What is the value created? ・Income of restaurant ・Improving matching of the people and population decline. ・The city itself become known better by participants [Q3] What is the mechanism for value creation ・Including insider and outsiders, so many people come to participate this event. ・Eat ,drink and pay much money（fourteenbillion Yen per year) ・And some of them become couples and there are possibility to live in this town.

19. Overview ・Due to declining birth rate and aging population, markets are shrinking and local supermarkets are withdrawing from rural areas, resulting in a increasing numbers of people with difficulties in daily shopping. Shibuya Corporations Inc., a small car manufacturer, has started circuits sales named Tokushimaru and has established a financially sustainable business model. It now deploys the model in various regions and solves local problems. No: 17 Title: Tokushimaru 画像（お好きなように） [Q1] What is the used resource ? ・The needs of those with difficulty in daily shopping in the aging society of rural areas. [Q2] What is the value created? ・Meeting demands of those with difficulty in daily shopping. Stimulating regional economies. Creating jobs. [Q3] What is the mechanism for value creation ・Shibuya Corporations, a small car manufacturer, plays tag team with sales partners and local supermarkets, each takings on risks on their own. Shibuya Corporations especially plays a key role such as thorough investigations on the local needs, setting sales routes, and also training sales partners.

20. No: 18 Title: Café Map in Yamaguchi city Overview Using augmented reality, Yamaguchi central shopping street made a “Café Map.” This map inform young people of non-franchise cafes. For instance, if you hold your tablet over a café, the app will show you a picture of its master in his early years. [Q1] What is the used resource ? ・Attractive non-franchise cafe ・AR techniques offered by KDDI ・Young people’s curiosity about new technology [Q2] What is the value created? The map removes barriers between young people and non-franchise cafés , by providing opportunities to have a conversation. [Q3] What is the mechanism for value creation The map encourages the young people to use non-franchise café. The service offers them the opportunity to make a conversation with clerks and a master. In addition, it offers up-dated information about menu or events.

21. No:19 Title: B-1Grand Prix: A Regional Vitalization food festival Overview Since 2006, B-1 Grand Prix has held once a year at the aim of regional vitalization. Around 60 local communities sell its local food. Around 600 thousand people participate in this event. “B” indicates “brand”. This festival contribute to publicize the regional food culture. [Q1] What is the used resource ? ・Variety of food culture ・Daily PR by local communities.(No additional PR cost for this event) [Q2] What is the value created? After the festival, more people visit the communities , even though they don’t get Grand Prix.Sometimes, the number of the visitors becomes doubled, or tripled. [Q3] What is the mechanism for value creation ・Participants vote for a local community (not food itself)the Grand Prix, using waribashi (disposable chopsticks) ・Participants can enjoy performances while they wait.

22. No: 20 Title: Summer Haunted House in Yanagase Overview Yanagaseshopping street is located in Gifu prefecture, the central part of Japan, which is the origin of “Mouth Spilt Woman(Japansene ghost)”. The shopping street used to be bustling, but recently less people has come. A local community development organization started a haunted house during summer in 2012. More than 20 thousand people, including many young people and children, participated. [Q1] What is the used resource ? ・The legend of mouth-Spilt woman ・Unoccupied shop(The haunted house was made by remaking unoccupied shops.) ・Summer vacation ・Japanese haunted house culture [Q2] What is the value created? ・Children and young people coming ・Yanagase’s Publicity [Q3] What is the mechanism for value creation ・Children and young people often go to haunted house in the summer to “cool off”. ・Participants enjoy the atmosphere of Yanagase in the Showa(1926-89) period and the fear of ghost in the building. ・Mass media takes up the haunted house.