The Development Bank of Japan published the "San'in Handbook 2025 Edition," providing detailed analysis of economic trends and regional characteristics specific to the San'in region (Tottori and Shimane prefectures), offering comprehensive regional economic intelligence based on unique geographic conditions, industrial structure, and historical background.
Geographic and Economic Context
This handbook provides comprehensive regional economic analysis considering San'in region's distinctive geographic conditions, industrial structure, and historical background, serving as strategic resource for regional business development, policy formulation, and investment assessment. The region's unique positioning along the Japan Sea coast creates distinct economic characteristics requiring specialized analytical approaches for effective development planning.
San'in region encompasses Tottori and Shimane prefectures with combined population of 1.34 million residents and gross regional product of 4.7 trillion yen in 2024. The region's economic structure emphasizes primary sector activities (agriculture, fisheries, forestry) contributing 8.9% of regional output, significantly above national average of 1.2%, alongside traditional manufacturing and emerging technology sectors.
Industrial Specialization and Competitive Advantages
Regional industrial analysis identifies strong competitive positioning in specialized sectors including precision manufacturing, food processing, and natural resource utilization. Electronics component manufacturing accounts for 23.7% of regional industrial output, with major facilities producing semiconductors, electronic devices, and precision instruments for domestic and export markets.
Agriculture sector innovation demonstrates remarkable productivity improvements with premium rice production, organic farming expansion, and high-value horticultural products contributing 156 billion yen annually. Fisheries industry maintains significant national market shares in specific species including red snow crab (34.7% national catch), yellowtail (18.9%), and traditional seafood processing generating 89 billion yen annual value.
Tourism sector capitalizes on natural attractions, historical sites, and cultural heritage with 18.7 million annual visitors generating 278 billion yen economic impact. Notable attractions include Daisen National Park, Matsue Castle, Izumo Taisha Shrine, and traditional craft production centers attracting domestic and international tourists seeking authentic Japanese cultural experiences.
Innovation Ecosystem and Technology Development
Regional innovation capacity benefits from strategic university-industry partnerships, specialized research institutions, and targeted technology development programs. Shimane University's research programs in materials science and biotechnology generate 23 patents annually, supporting regional technology commercialization and startup development.
Renewable energy development shows exceptional potential with wind power projects along coastal areas achieving 234 MW installed capacity and solar installations reaching 567 MW regional total. Biomass energy utilization leverages abundant forest resources, contributing to regional energy security and sustainable development objectives.
Infrastructure Investment and Development Initiatives
Transportation infrastructure improvements include San'in Expressway completion connecting major regional centers, port facility modernization supporting international trade, and railway network efficiency enhancements reducing travel times to major metropolitan areas by an average of 23 minutes.
Digital infrastructure development addresses regional connectivity challenges through comprehensive fiber optic network deployment reaching 94.2% household coverage and strategic 5G tower placement ensuring reliable high-speed internet access across both urban and rural areas.
Demographic Strategy and Community Development
Population retention and attraction initiatives focus on quality of life advantages, affordable living costs (housing costs 43% below national average), and comprehensive community services supporting family life and career development. Regional migration programs achieved net positive population movement of 1,200 residents in 2024, reversing previous decline trends.
Educational infrastructure includes specialized vocational programs aligned with regional industry needs, distance learning capabilities connecting students with national educational resources, and lifelong learning programs supporting workforce skill development and career transitions.
The handbook concludes that San'in region's strategic development approach leveraging natural advantages, cultural heritage, and targeted innovation investments positions the area for sustainable economic growth despite demographic challenges.