The Development Bank of Japan published the "Kanto Handbook 2025 Edition," providing comprehensive analysis of economic, industrial, and social conditions across the Kanto region (Tokyo, Kanagawa, Saitama, Chiba, Ibaraki, Tochigi, and Gunma prefectures).
Kanto Economic Zone Overview
As Japan's largest economic region, the Kanto area contributes 32.1% of national GDP with gross regional product of 223.4 trillion yen in 2024, demonstrating exceptional economic scale and diversity. Population of 43.7 million residents (34.6% of national total) creates massive domestic market and provides extensive human capital for continued economic development.
Tokyo serves as global financial center and business headquarters location, while surrounding prefectures provide manufacturing capacity, logistics infrastructure, residential areas, and specialized economic functions creating integrated metropolitan economic system. Regional economic growth rate reached 2.9% annually, driven by service sector expansion, technology industry development, and international business activity.
Industrial Structure and Economic Competitiveness
Service sector dominance at 76.8% of regional economy includes financial services, information technology, professional services, retail trade, and entertainment industries concentrated primarily in Tokyo metropolitan area. Financial sector alone contributes 8.9% of regional GDP through banking, securities, insurance, and asset management activities serving domestic and international markets.
Manufacturing sector accounts for 18.7% of regional output despite high land costs, focusing on high-value-added production including precision instruments, electronic components, pharmaceuticals, and advanced materials. Regional manufacturing emphasizes technology-intensive processes, research and development integration, and close proximity to major markets.
Information technology sector demonstrates exceptional growth with software development, telecommunications, e-commerce, and digital services generating 4.7 trillion yen annual output. Regional IT industry includes major corporations, startup companies, and international technology firms establishing Japanese market presence through Kanto operations.
Innovation Leadership and Research Excellence
The region hosts 137 universities including University of Tokyo, Tokyo Institute of Technology, and Waseda University, generating world-leading research across multiple disciplines. Research and development investment totaled 8.9 trillion yen in 2024, representing 34.7% of national R&D expenditure and supporting continuous innovation across industries.
Startup ecosystem includes 2,347 active technology companies, 234 venture capital firms managing 4.5 trillion yen assets, and comprehensive entrepreneur support infrastructure facilitating business creation and scaling. Government innovation programs include Tokyo Innovation Base and various technology commercialization initiatives supporting emerging industry development.
Infrastructure Excellence and Connectivity
Transportation infrastructure includes Haneda and Narita international airports handling combined 89.7 million passengers annually, comprehensive railway networks providing efficient metropolitan area mobility, and port facilities supporting international trade. Digital infrastructure leadership includes 5G network deployment, fiber optic coverage, and data center capacity serving national and international requirements.
Logistics infrastructure supports regional economic activity through advanced distribution centers, automated cargo handling systems, and integrated supply chain management capabilities connecting domestic production with international markets.
International Business and Global Integration
International business activity includes headquarters operations for 567 multinational corporations, foreign direct investment totaling 12.8 trillion yen, and extensive trade relationships with global markets. Regional international business services include legal, accounting, consulting, and specialized professional services supporting global corporate operations.
Cultural and educational exchange programs include 234,000 international students, sister city relationships, and cultural exchange initiatives promoting international understanding and business development opportunities.
Future Development Vision and Strategic Priorities
Long-term development strategy emphasizes maintaining position as Asia-Pacific economic center through continued innovation leadership, international business attraction, and sustainable urban development. Strategic priorities include digital transformation acceleration, startup ecosystem expansion, and environmental sustainability integration.
The handbook concludes that Kanto region's economic scale, innovation capacity, infrastructure excellence, and international connectivity ensure continued leadership in Japan's economic development and global competitiveness.