As an element of the regional innovation cluster, the citizen/ non-profit sector fulfills the “seedbed function†of the new industry

The citizen/nonprofit sector has a function as an “economic entity†as well a “public interest entity†and has been creating new business regionally. In regions with deep seated problems, innovation becomes easy to create, resulting in emerging new businesses. Activation of local contribution initiatives by citizen/non-profit sectors and their “businessization†will make local needs more achievable. In the fields where market mechanisms have been difficult to actualize, companies have also started to do business, with the expectation that new products and service fields will mature. Through such processes, new markets and industries are created. Regionally, the citizen/non-profit sector performs a “seedbed function†for new industry. In this chapter, the author reports on IT business case studies (internet-related business) which have been created by the citizen/nonprofit sector. Further, the chapter clarifies “input resources†of regional innovation clusters and the process of new industry creation.