Tetsuji Okazaki, 13 November 2019

During World War II aircraft production in Japan increased sharply. This column, part of the Vox debate on the economics of WWII, examines the reasons for this ‘production miracle’, focusing on an aircraft manufacturing plant of Mitsubishi Heavy Industries Co., one of the two largest aircraft producers in Japan. The key to the production increase was the expansion of the supplier network. Mitsubishi Heavy Industries organized many suppliers to provide aircraft parts to its plants. However, in the final stage of the war, destruction of the supplier network by strategic bombing and an earthquake caused the collapse of the company’s aircraft production.

Yasuyuki Todo, Petr Matous, 26 June 2015

Firm networks affect innovation and growth through diffusion of knowledge and information. This column argues that promoting ties with firms outside of the region should be an important part of cluster policies. Such ties can bring new information to the region and can enhance innovation. Distant firm partners can also help in the short-run recovery after a disaster, as was the case following the 2011 earthquake in Japan.

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