The empirical study on the emergence and diffusion process of design-driven innovation initiated by knowledge creation: from the field study in the industrial cluster of the Sumida Ward, Tokyo

This chapter analyses knowledge creation in Sumida Ward’s industrial cluster in Tokyo and shows the possibility of creating design-driven innovation and new industries. It uses and expands the design-driven innovation theory applied to cases of horizontal and co-creative network of SMEs. Malmberg and Maskell (1999) argue that spatial clusters are important for knowledge creation, in addition to the importance of knowledge creation in forming innovation. Sumida Ward was selected in this research because the concentration of SMEs in industrial clusters is the highest in Japan and the spatial clusters are remarkable. As a survey method, it uses text mining from the interview survey in the small and medium-sized manufacturing industry of Sumida Ward, Tokyo. The results show that development through dialogue between various stakeholders provides an opportunity to give products new “meanings†and create new industries.