Chapter1. Economy and Industrial Structure of the Greater Nagoya Area

1. The Greater Nagoya Area accounts for about 10% of Japan's total economic output. Specifically, the region accounts for 8.8% of the population, 9.7% of GNP, and 9.5% of citizens' income. Of particular note is the shipment of manufactured products accounting for 18.2% of the nation's total, with the manufacturing industry accounting for 32.7% of the area's GNP. These figures show that the Greater Nagoya Area is driven by the manufacturing industry.
   
   
2. In the manufacturing industry of the Greater Nagoya Area, transportation equipment accounts for the largest proportion (42.2%) in the shipment of manufactured products. This high concentration of the transportation equipment industry is reflected in the number of business establishments and value added. The Greater Nagoya Area is also characterized by a concentration of ceramics, quarrying, and textile industries as well as the plastic products manufacturing industry.
   
   
3. In terms of annual sales (revenues) by type of business in the Greater Nagoya Area, the wholesale industry (37.8 trillion yen), the retail industry (11.9 trillion yen), and the service industry (12.0 trillion yen) account for 9.3%, 8.9%, and 7.9%, respectively, of the nation's total. The wholesale industry is characterized by large sales and national shares of businesses (including mineral/metal materials, automobiles, and general machinery/appliances) that reflect the area's characteristic as the center of the manufacturing industry. The retail industry is also characterized by large sales and national shares in automobiles. In the service industry, restaurants have the largest shares in Japan by number of business establishments and revenues.
   
   
4. Over the last 10 years, the population of the Greater Nagoya Area has been growing faster than the national average. Citizens' income growth within Aichi Prefecture has remained strong compared with the national average. The number of business establishments within the area has fallen by as many as 75,000 (12.7%) over the last eight years. While the number of persons employed has fluctuated, the figure grew by 5% in 2006. The area's GNP is characterized by an increase in the secondary industry, showing that the brisk manufacturing industry drives the economy of the Greater Nagoya Area.
   
   
5. The Greater Nagoya Area refers to an area of approximately 100 km radius around Nagoya City. The government, industry, and academia (including research institutions) within the area have been working together to promote industrial exchange on a global basis under what is known as “the Greater Nagoya Initiative.”