This study finds that the development process of the Kiryu silk weaving district in Japan from 1895 to 1930 can be divided at least into the two phases, i.e., Smithian growth based on the inter-firm division of labor using hand looms and Schumpeterian development based on factory system using...

Recent studies have shown that economic development based on industrial districts or clusters is common not only in the Western nations but also among many developing countries, as Marshall might have anticipated. Similarly, in the development process of modern Japan, many industrial districts...