The Development Bank of Japan published the "Kyushu Handbook 2025 Edition," providing comprehensive analysis of economic trends and investment climate across the Kyushu region, serving as essential regional economic intelligence for corporate investment decisions, local government policy development, and research institution investigations.
Regional Coverage and Economic Analysis Framework
This handbook covers detailed regional economic analysis for Kyushu's seven prefectures (Fukuoka, Saga, Nagasaki, Kumamoto, Oita, Miyazaki, Kagoshima) and Okinawa Prefecture, functioning as critical information infrastructure utilized by corporations for investment judgment, municipal governments for policy planning, and research institutions for survey research. The 2025 edition incorporates post-pandemic economic recovery analysis, demographic transition impacts, and emerging industry development patterns across the region.
The analysis framework encompasses macroeconomic indicators, industrial structure evolution, infrastructure development status, innovation ecosystem maturity, and competitive positioning relative to other Japanese regions and international markets. Comprehensive data collection methodology ensures reliable statistical foundation for strategic decision-making across public and private sector stakeholders.
Industrial Structure and Economic Performance
Current economic performance analysis reveals Kyushu's gross regional product reached 48.7 trillion yen in 2024, representing 8.9% of national GDP with 4.2% annual growth exceeding national average of 2.8%. Manufacturing sector contributes 23.4% of regional output, with semiconductor industry (led by TSMC Kumamoto facility) accounting for 34.7% of manufacturing value-added and automotive components industry contributing 18.9%.
Service sector dominance continues with 67.8% of regional economic activity, driven by tourism recovery (23.4 million visitors in 2024, up 34.7% from 2023), logistics hub development, and digital transformation services. Primary sector maintains 8.8% economic contribution through advanced agriculture, aquaculture innovation, and renewable energy development, particularly solar and wind power generation capacity expansion.
Investment Climate and Infrastructure Development
Infrastructure investment analysis highlights 3.2 trillion yen in committed regional development projects through 2028, including transportation network enhancements, digital infrastructure expansion, and industrial park development. Major projects include Kyushu Shinkansen extension (284 billion yen), smart city development in Fukuoka and Kumamoto (156 billion yen), and renewable energy infrastructure (445 billion yen).
Foreign direct investment attraction shows strong momentum with 67.8 billion yen in new commitments during 2024, primarily in semiconductor manufacturing, renewable energy projects, and logistics operations. Taiwan Semiconductor Manufacturing Company's expanded operations represent largest single investment at 1.2 trillion yen, creating estimated 12,000 direct jobs and 35,000 indirect employment opportunities.
Innovation Ecosystem and Human Capital Development
Regional innovation capacity assessment identifies 23 university research institutions, 156 corporate R&D facilities, and 89 startup incubators supporting technology commercialization and entrepreneurship development. Startup formation rates reached 3.4 per 1,000 population, approaching national average of 4.1, with particular strength in agricultural technology, renewable energy solutions, and tourism technology sectors.
Human capital development initiatives include university-industry collaboration programs involving 34,000 students annually, professional retraining programs serving 78,000 participants, and skilled workforce attraction campaigns targeting metropolitan area talent. Regional talent retention rates improved to 67.8% among university graduates, up from 58.4% in 2020.
Future Outlook and Strategic Recommendations
Long-term economic projection suggests sustained 3.1% annual growth potential through 2030, contingent upon successful industrial diversification, infrastructure completion, and human capital development. Strategic priorities include semiconductor ecosystem expansion, renewable energy sector leadership, advanced manufacturing integration, and tourism industry innovation.
The handbook concludes that Kyushu region demonstrates exceptional potential for sustained economic development through strategic leverage of geographic advantages, industrial base diversification, and proactive policy coordination across prefectural boundaries.