The Development Bank of Japan published the "Regional Handbook 2025 Edition," a comprehensive regional economic report providing cross-sectional comparative analysis of economic trends across Japan's regional economies.
National Regional Economic Overview
This publication analyzes regional economic conditions across Japan's major regional blocks (Hokkaido, Tohoku, Kanto, Hokuriku, Tokai, Kansai, Chugoku, Shikoku, and Kyushu), providing systematic comparison of economic performance, industrial specialization, demographic trends, and development potential. The comprehensive analysis enables understanding of regional economic interdependencies and competitive positioning within Japan's national economic framework.
Regional economic performance in 2024 shows divergent trends with metropolitan areas (Kanto, Kansai, Tokai) maintaining strong growth rates of 2.8-3.4% annually, while rural regions experience more moderate growth of 1.8-2.3%. Manufacturing-focused regions demonstrate resilience through export performance, while service-oriented metropolitan areas benefit from domestic consumption and international business activity.
Comparative Industrial Analysis
Cross-regional industrial analysis reveals distinct specialization patterns with automotive industry concentration in Tokai (42.3% of national production), petrochemical industry leadership in Kyushu (28.7% of national capacity), and financial services dominance in Kanto (67.8% of national financial sector activity). These specialization patterns create regional competitive advantages while generating economic interdependencies.
Regional innovation capacity varies significantly with Kanto region accounting for 34.7% of national R&D expenditure, followed by Kansai (12.4%) and Tokai (10.8%). University research concentration, corporate R&D facilities, and startup ecosystem development correlate strongly with regional innovation performance and long-term economic competitiveness.
Infrastructure Investment and Development Patterns
Regional infrastructure development shows coordinated national planning with transportation network enhancements, digital infrastructure deployment, and energy system modernization supporting inter-regional economic integration. Total regional infrastructure investment reached 23.4 trillion yen in 2024, emphasizing connectivity improvements and industrial competitiveness enhancement.
Renewable energy development demonstrates regional resource utilization patterns with wind power concentration in Hokkaido and Tohoku, solar power leadership in Kyushu and Chugoku, and geothermal development in volcanic regions. Regional energy specialization contributes to national energy security while creating new economic opportunities.
Demographic Transition and Regional Strategies
Population trends reveal continued metropolitan area concentration with Tokyo metropolitan area maintaining 28.9% of national population, while rural regions implement population retention strategies including economic diversification, quality of life enhancement, and migration attraction programs. Regional demographic policies focus on sustainable development models appropriate to local conditions.
Workforce development initiatives vary by regional economic specialization with manufacturing regions emphasizing technical education, metropolitan areas focusing on professional services training, and rural regions developing agricultural technology and tourism service capabilities.
Regional Collaboration and Integration
Inter-regional collaboration mechanisms include joint infrastructure projects, shared research initiatives, and coordinated marketing efforts promoting regional economic integration. Regional development banks, investment funds, and policy coordination bodies facilitate resource sharing and strategic planning across prefectural boundaries.
International trade patterns show regional specialization with manufacturing regions emphasizing export development, metropolitan areas serving as international business centers, and rural regions developing niche export products including agricultural goods and traditional crafts.
The handbook concludes that Japan's regional economies demonstrate increasing integration and specialization, requiring coordinated development strategies that leverage regional advantages while addressing demographic and economic challenges through systematic collaboration and strategic investment allocation.